Republic Act No. 9700: Once a CLOA, always a CLOA title.

 A lot of people who desire to buy agricultural lands often ask: Can a Certificate of Land Ownership Award (CLOA), which is also a TCT title, be sold and converted into a regular TCT title? And the answer to that question is generally, a CLOA title CANNOT be converted into a regular TCT title.  

Section 27 of Republic Act No. 6657, as amended by Section 12 of Republic Act No. 9700, reads as follows: 

"SEC. 27. Transferability of Awarded Lands. - Lands acquired by beneficiaries under this Act or other agrarian reform laws shall not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries through the DAR for a period of ten (10) years: Provided, however, That the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within a period of two (2) years x x x."

"The title of the land awarded under the agrarian reform must indicate that it is an emancipation patent or a certificate of land ownership award and the subsequent transfer title must also indicate that it is an emancipation patent or a certificate of land ownership award.

"If the land has not yet been fully paid by the beneficiary, the rights to the land may be transferred or conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other beneficiary who, as a condition for such transfer or conveyance, shall cultivate the land himself/herself. Failing compliance herewith, the land shall be transferred to the LBP which shall give due notice of the availability of the land in the manner specified in the immediately preceding paragraph.

"In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump sump for the amounts the latter has already paid, together with the value of improvements he/she has made on the land." (Source: Republic Act No. 9700)

NOTES: 

DAR Administrative Order No. 06-16 

x x x

Section 9. Judicial Form for Transfer of Awarded Land. – The judicial form of the Certificate of Title resulting from the transfer of an Awarded Lands (sic) after the holding period (henceforth becoming TAL) shall not be an EP or CLOA, but shall state the EP or CLOA number of the Awarded Land.  Therefore, such Title need not be generated by the DAR nor be signed by the Secretary of Agrarian Reform.

The judicial form of the Certificate of Title resulting from the transfer of a TAL shall also not be an EP or CLOA but shall state the EP or CLOA number of the original Awarded Land.  Such Title need not also be generated by the DAR nor signed by the Secretary of Agrarian Reform.

The judicial form of the Certificate of Title resulting to the transfer of an Awarded Land pursuant to intestate succession or testate succession of a legitime during the holding period (henceforth remaining as an Awarded Land) shall be an EP or CLOA, as the case may be.  Such Title must be generated by the DAR and signed (through signing machine) by the Secretary of Agrarian Reform.