Annulment of CLOA titles in the absence of full payment of the value of the lands covered by RA 6657 (CARP)

A Certificate of Land Ownership Award (CLOA) can be canceled if just compensation is not provided. The issuance of a Certificate of Land Ownership Award (CLOA) is a significant step in the government's agrarian reform program, as it grants ownership rights to beneficiaries, typically landless farmers. However, a CLOA can be revoked if it is determined that the original landowner did not receive just compensation for the land. This situation constitutes a violation of the fundamental principle of fair compensation under the power of eminent domain.

The Principle of Just Compensation. Eminent domain is the government's power to take private property for public use, provided that fair compensation is given to the property owner. This principle is enshrined in many legal systems worldwide, including the Philippines, where the ComprehensiveAgrarian Reform Program (CARP) facilitates land redistribution. Under CARP, landowners whose properties are expropriated must be compensated adequately and promptly by the government.

Grounds for CLOA Cancellation.

A CLOA may be revoked by the courts if it is proven that the original landowner was not fairly compensated. The following grounds may justify such a cancellation:

1. Non-Payment or Inadequate Payment: If the government fails to provide full and fair compensation, the landowner can challenge the validity of the CLOA issued to beneficiaries.

2. Procedural Irregularities: If there were procedural lapses in the acquisition process, such as a lack of due process in determining land valuation, courts may intervene.

3. Violation of Property Rights: If the taking of land violates constitutional protections regarding property ownership, the courts may order the nullification of the CLOA.

4. Fraud or Misrepresentation: If the CLOA was issued based on fraudulent claims or misrepresentation, it can be subject to revocation.

Legal Implications of CLOA Cancellation. If a court cancels a CLOA due to non-payment or underpayment of just compensation, the land may revert to the original landowner, or the government may be compelled to rectify the compensation issue before proceeding with redistribution. This situation can lead to significant legal battles between landowners, government agencies, and agrarian reform beneficiaries.

Furthermore, the revocation of a CLOA can have social and economic repercussions. Agrarian reform beneficiaries may face displacement, and the government's credibility in implementing land reform programs may be undermined. To prevent such issues, it is crucial for authorities to ensure that fair and just compensation is provided at the outset of land acquisition.

The cancellation of a CLOA due to the lack of just compensation underscores the importance of adhering to the legal and constitutional principles of eminent domain. The government has a duty to provide equitable compensation to landowners while promoting agrarian reform. By ensuring fair payment, legal disputes can be minimized, and the objectives of land reform can be successfully achieved without compromising property rights.

In Philippine jurisprudence, the cancellation of a Certificate of Land Ownership Award (CLOA) due to the lack of just compensation to the original landowner has been addressed in several cases. Notably:

1. Roxas & Co., Inc. v. Court of Appeals (G.R. No. 127876): The Supreme Court emphasized that expropriating land without valid payment of just compensation violates the constitutional mandate that private property shall not be taken for public use without just compensation. The Court acknowledged that while procedural lapses occurred in the acquisition process, it did not have the power to nullify the CLOAs already issued to farmer beneficiaries. Instead, it highlighted that the Department of Agrarian Reform (DAR) should correct its procedural lapses, noting that the farmer beneficiaries hold the property in trust for the rightful owner of the land.

2. Heirs of the Late Domingo Barraquio vs. Almeda Incorporated (G.R. No. 169649): The Supreme Court ruled that an exemption order issued by the agrarian reform secretary must be final and executory before it can serve as a basis to revoke or cancel CLOAs issued to farmer-beneficiaries. This case underscores the importance of finality in administrative orders before affecting the rights of agrarian reform beneficiaries.

3. Agrarian Reform Beneficiaries Association v. Loreto G. Nicolas, et al. (G.R. No. 168394, October 2008): In this case, the Department of Agrarian Reform Adjudication Board (DARAB) declared the coverage of certain lands under the Comprehensive Agrarian Reform Program (CARP) void ab initio. The DARAB ordered the cancellation of the CLOAs issued to the beneficiaries and reinstated the titles to the original landowners. This decision was based on the finding that the lands had been reclassified as urban zones prior to their inclusion in CARP, making them exempt from agrarian reform coverage.

4. Land Bank of the Philippines vs. Dumlao (G.R. No. 167809, November 27, 2008): The Supreme Court held that just compensation for agricultural lands under Operation Land Transfer should be based on the Comprehensive Agrarian Reform Law (RA No. 6657). The date of valuation starts from the issuance of emancipation patents, covering all landholdings regardless of the Department of Agrarian Reform's processing. This case underscores the importance of determining just compensation in accordance with current laws to ensure fairness to landowners.

5. Phil-Agro Industrial Corporation v. Land Bank of the Philippines (G.R. No. 193987, March 13, 2017): The Supreme Court ruled that just compensation should be reckoned from the time of taking, identified as the issuance date of the CLOA. The Court emphasized that delays in paying just compensation entitle landowners to legal interest to compensate for the loss of income due to the taking. 

6. Philcontrust Resources, Inc. v. Department of Agrarian Reform Adjudication Board (G.R. No. 214714, October 7, 2020): This case highlights the necessity for stakeholders to comply with agrarian laws and regulations, particularly concerning the proper procedure for compulsory land acquisition, including the payment of just compensation. The Court underscored the importance of following due process to ensure the effective implementation of the agrarian reform program.

7. Land Bank of the Philippines v. Heirs of Maximo Puyat (G.R. No. 127876, November 30, 2001): The DAR issued CLOAs to farmer beneficiaries over portions of the petitioner's land without providing just compensation to the petitioner. The Supreme Court highlighted that a CLOA serves as evidence of ownership under RA 6657, and before it can be awarded to a beneficiary, the land must first be acquired by the state from the landowner with just compensation.

These cases on payment of just compensation underscore the necessity of adhering to due process in agrarian reform, particularly ensuring that landowners receive just compensation before the issuance of CLOAs to beneficiaries. /cds

According to Philippine jurisprudence, a Certificate of Land Ownership Award (CLOA) can be cancelled if the landowner was not paid "just compensation" for the land acquired under agrarian reform, meaning the government must fairly compensate the landowner for the property taken, and failure to do so can result in the cancellation of the CLOA issued to the beneficiary; this is primarily governed by the provisions of Republic Act No. 6657, also known as the Comprehensive Agrarian Reform Law (CARL). 

Distribution of CLOA Titles and CoCRoM in Isabela

CABAGAN, Isabela - On November 22, 2024, President Ferdinand R. Marcos Jr. led a significant event in Cabagan, Isabela, distributing Certificates of Condonation with Release of Mortgage (CoCROM) to agrarian reform beneficiaries (ARBs). This initiative, under the New Agrarian Emancipation Act (Republic Act No. 11953), effectively absolves farmers of their outstanding land amortization debts.

The CoCROM is an official document issued to agrarian reform beneficiaries (ARBs) under Republic Act No. 11953, also known as the New Agrarian Emancipation Act.

Purpose of CoCROM: (1) It confirms the condonation (forgiveness) of all unpaid land amortizations, including principal, interests, penalties, and surcharges, incurred by ARBs; (2) It officially releases the mortgage on the land awarded to ARBs, giving them full ownership without financial obligations; (3) It allows farmers to focus on agricultural productivity without the burden of land-related debt. This certificate is being distributed across the Philippines, particularly in agrarian reform communities, as part of the government’s effort to support farmers and enhance the agricultural sector.

Reasons Behind RA 11953 (New Agrarian Emancipation Act). The New Agrarian Emancipation Act was signed into law on July 7, 2023, by President Ferdinand Marcos Jr. to provide financial relief and support to agrarian reform beneficiaries (ARBs). Here are the key reasons behind its enactment: (1) Debt Relief for Farmers - Many ARBs struggled to pay off land amortizations for lands awarded under agrarian reform programs. The law condones all unpaid amortizations, including principal, interest, penalties, and surcharges from land awarded under the Comprehensive Agrarian Reform Program (CARP) and other agrarian reform programs. This affects about 610,054 ARBs covering 1.173 million hectares, with a total of ₱57.56 billion in condoned debt; (2)  Empowering Farmers for Agricultural Productivity - By removing the financial burden, farmers can now focus on improving their farms without worrying about unpaid amortizations. It encourages ARBs to invest in better farming technologies, increase crop production, and contribute more effectively to food security; (3)  Economic Growth & Rural Development - The law supports sustainable agriculture by ensuring that farmers have secure land ownership without financial constraints. This move is expected to boost rural economies by increasing productivity and financial stability among farmers; (4) Continuation of Agrarian Reform Efforts - The law aligns with the government’s ongoing commitment to agrarian reform and social justice. It addresses longstanding issues related to land ownership, tenure security, and the economic challenges faced by ARBs. By enacting RA 11953, the government aims to uplift the lives of Filipino farmers, ensuring land ownership truly leads to agricultural success and rural prosperity.

The ceremony, held at the Josefina T. Albano Cultural Sports Complex, saw the distribution of over 25,000 CoCROMs, benefiting approximately 21,000 ARBs in Isabela. These certificates cover nearly 22,000 hectares of agricultural land, amounting to over ₱1 billion in condoned debts. President Marcos emphasized that with these certificates, farmers are relieved from the burden of land amortization payments, allowing them to focus solely on cultivating and enhancing their lands.

In addition to the CoCROMs, more than 450 Certificates of Land Ownership Award (CLOAs) were distributed to over 340 farmers, encompassing around 500 hectares of land in the province. This effort underscores the government's commitment to accelerating agrarian reform and providing tangible support to the agricultural sector.

President Marcos also urged farmers and fisherfolk to enroll in the Philippine Crop Insurance Corporation's programs. This initiative aims to safeguard their livelihoods against potential losses due to natural calamities, ensuring resilience and sustained productivity in the face of environmental challenges.

The event in Cabagan is part of a broader national effort to implement the New Agrarian Emancipation Act, which was signed into law in July 2023. The act aims to condone all loans, including interests, penalties, and surcharges, incurred by ARBs from land awarded under various agrarian reform programs. Nationwide, approximately 600,000 farmers are expected to benefit from this legislation, covering more than 1.7 million hectares of agrarian reform lands.

This landmark event signifies a substantial stride toward empowering Filipino farmers, alleviating their financial burdens, and promoting sustainable agricultural development across the nation.

 

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.

 

DAR Cagayan Valley 2019 ANNUAL REPORT

DAR-World Bank Project SPLIT to facilitate subdivision of collective to individual CLOAs for agrarian reform beneficiaries

Support to Parcelization of Lands to Individual Title (SPLIT), is a project that seeks to give farmer-beneficiaries covered under collective Certificates of Land Ownership Awards (cCLOA), the opportunity to have and own individual titles as evidence of ownership to the farmlot/s awarded to them under the agrarian reform program.

The recently approved Department of Agrarian Reform-World Bank (DAR-WB) SPLIT project is a loan package amounting to Php24 Billion which shall be used to subdivide the cCLOAs - about 1.38 million hectares, into individual land titles so that the agrarian reform beneficiaries (ARBs) may fully exercise their rights of ownership and possession over their landholding/s.

The issuance of CCLOAs has repercussion to the government as it could not collect taxes and amortization. The same can be said to many beneficiaries who are not engaged in collective farming. All these issues can be cured once these cCLOAs are split into individual titles, he said.

The project SPLIT also includes the acquisition for the DAR Provincial offices involved, of survey and other related equipment for the subdivision of each farm lot, four-wheel drive vehicles and motorcycles for the mobilization of DAR survey teams, including hiring of additional manpower. It also requires capability trainings due to advances in technology, such as on the use of new software/computer programs like the AutoCAD Google Earth (AGE) Mapping which is useful for the subdivision of individual land titles as it requires computing technical descriptions, conversion of coordinates, transporting KMZ files (used by Google Earth) to Andriod phones among others.

The DAR-WB SPLIT project is in response to President Rodrigo Roa Duterte’s order to the Department of Agrarian Reform (DAR) to conduct the survey and re-documentation of collective land titles to individual certificates of landownership awards (CLOAs). President Rodrigo R. Duterte requested the assistance of the World Bank in order to expedite the process of subdividing the lands covered by collective agrarian reform land titles.