Land transactions that REQUIRE issuance of DAR Clearance in the Philippines

 

I. LEGAL FOUNDATION

The requirement for DAR Clearance stems from:

1. Republic Act No. 6657 (as amended by RA 9700)

• Section 27 – Prohibits transfer of awarded lands except in specific cases
• Section 65 – DAR regulates land use and conversion
• Establishes DAR jurisdiction over agricultural land transfers

2. Executive Order No. 129-A

• Vests DAR with primary authority to approve/disapprove land transfers

3. Joint DAR-LRA Memorandum Circular No. 20, s. 1996

• Registry of Deeds shall not register instruments involving agricultural land without DAR Clearance

4. DAR Administrative Issuances

• DAR AO No. 1, s. 2019
• DAR AO No. 04, s. 2021 (streamlining clearance procedures)

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II. TRANSACTIONS REQUIRING DAR CLEARANCE

1. Sale or Absolute Conveyance of Agricultural Land

Includes:

• Deed of Absolute Sale
• Conditional Sale
• Installment Sale

Legal Basis:

• RA 6657, Sec. 27
• Joint DAR-LRA MC No. 20, s. 1996

👉 Applies to:

• Private agricultural lands
• Lands already covered or subject to CARP

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2. Transfer of Ownership of Awarded Lands (CLOA/EP Lands)

Includes:

• Sale by agrarian reform beneficiaries (ARBs)
• Transfer to qualified beneficiaries
• Transfer to the government

Legal Basis:

• RA 6657, Sec. 27
• DAR AO No. 1, s. 2019

⚠️ Strictly regulated:

• Within 10-year prohibition period
• Buyer must be qualified beneficiary

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3. Donation of Agricultural Land

Includes:

• Donation inter vivos
• Transfers without consideration

Legal Basis:

• RA 6657 (DAR regulatory authority)
• Joint DAR-LRA MC No. 20, s. 1996

👉 Treated as a mode of ownership transfer → requires clearance

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4. Exchange (Barter) of Agricultural Lands

Legal Basis:

• Civil Code (contracts) + DAR regulatory authority
• Joint DAR-LRA MC No. 20, s. 1996

👉 Any change in ownership triggers DAR review

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5. Assignment or Transfer of Rights

Includes:

• Assignment of rights over agricultural land
• Transfer of possessory or usufruct rights (if ownership implications exist)

Legal Basis:

• DAR AO No. 1, s. 2019
• RA 6657 Sec. 27

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6. Subdivision of Agricultural Land for Transfer to Multiple Buyers

Includes:

• Sale of subdivided agricultural lots
• Development for distribution (non-conversion scenario)

Legal Basis:

• RA 6657 Sec. 65 (land use regulation)
• DAR administrative issuances

👉 DAR ensures:

• No circumvention of CARP
• Compliance with retention limits

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7. Transfer of Agricultural Lands Covered by Pending CARP Acquisition

Rule:

Even if not yet awarded, lands under CARP process cannot be transferred without DAR clearance

Legal Basis:

• RA 6657 Sec. 16 (acquisition process)
• DAR jurisdiction doctrine

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8. Lease with Transfer Features / Lease-to-Own Arrangements

Includes:

• Lease agreements that effectively transfer ownership
• Long-term arrangements with purchase options

Legal Basis:

• DAR regulatory power under EO 129-A
• Anti-circumvention principle of CARP

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9. Corporate Transfers Involving Agricultural Land Assets

Includes:

• Sale of shares where primary asset is agricultural land
• Mergers/acquisitions affecting land control

Legal Basis:

• DAR doctrine on substance over form
• RA 6657 policy against circumvention

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10. Foreclosed Agricultural Land (Upon Resale)

Rule:

• Bank acquisition → no clearance at foreclosure stage
• Resale to third party → requires DAR clearance

Legal Basis:

• DAR administrative practice
• Joint DAR-LRA MC No. 20, s. 1996

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III. KEY OPERATING RULE

👉 No DAR Clearance = No Registration

Under Joint DAR-LRA MC No. 20, s. 1996:

• Registry of Deeds must deny registration
• Applies to:
  • Transfer Certificate of Title (TCT) issuance
  • Annotation of deeds

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IV. TECHNICAL TRIGGERS FOR DAR CLEARANCE

A transaction requires DAR clearance if ALL are present:

1. Land is agricultural in classification or use
2. There is transfer/change of ownership or control
3. Land is within or potentially within CARP coverage

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V. FIELD-LEVEL GUIDANCE (DAR / LGU / ARBO USE)

Before processing any transaction, verify:

• Land classification (tax declaration + zoning)
• CARP status:
  • Covered
  • Under process
  • Awarded (CLOA/EP)
• Presence of:
  • Conversion Order
  • Exemption/Exclusion Order

👉 If uncertain → require DAR Clearance or Certification

Related article: Exemptions from DAR Clearance for transfer of agricultural lands in the Philippines