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Showing posts with label exemption. Show all posts
Showing posts with label exemption. Show all posts

Tuesday, March 24, 2026

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

 


I. GENERAL RULE

DAR Clearance is required for any transfer, sale, or conveyance of agricultural land.

Legal Bases:

  • Republic Act No. 6657 (CARL), as amended by RA 9700
    • Sec. 27 – restrictions on transfer of awarded lands
    • Sec. 65 – DAR authority over land use and transfers
  • Executive Order No. 129-A (1987) – DAR’s regulatory authority
  • DAR Administrative Orders (e.g., AO No. 1, s. 2019; AO No. 04-2021)
  • Joint DAR-LRA MC No. 20, s. 1996 – RD will not register transfers without DAR clearance

II. EXEMPTIONS FROM DAR CLEARANCE

1. Transfers by Hereditary Succession

Rule:

Transfer of agricultural land through inheritance (testate or intestate) does not require DAR clearance as a prerequisite to transfer, although DAR may still require verification.

Legal Basis:

  • RA 6657, Sec. 27 – allows transfer by hereditary succession
  • Civil Code provisions on succession
  • Recognized in DAR practice and jurisprudence

Notes:

  • Still subject to retention limits (5 hectares per heir)
  • DAR may issue certification instead of clearance

2. Transfers to the Government or Government Entities

Rule:

Sales, donations, or conveyances to:

  • National Government
  • Local Government Units (LGUs)
  • Government-Owned and Controlled Corporations (GOCCs)

Exempt from DAR clearance

Legal Basis:

  • RA 6657, Sec. 27 – allows transfer to the government
  • Public purpose doctrine (eminent domain, infrastructure)

3. Lands Already Classified as Non-Agricultural

Rule:

If land is not agricultural, DAR has no jurisdiction, hence no clearance required.

Includes:

  • Residential
  • Commercial
  • Industrial
  • Institutional

Legal Bases:

  • RA 6657, Sec. 3(c) – defines agricultural land
  • DAR AO No. 06, s. 1994
  • DOJ Opinion No. 44, s. 1990

👉 Key doctrine:

  • Lands classified as non-agricultural before 15 June 1988 are outside CARP coverage

4. Lands with Approved DAR Conversion

Rule:

If land has a valid DAR Conversion Order, it is no longer agricultural → no DAR clearance required for transfer

Legal Basis:

  • RA 6657, Sec. 65 – land conversion authority
  • DAR Administrative Orders on conversion (e.g., AO No. 1, s. 2002)

5. Judicial Transfers (Court-Ordered)

Rule:

Transfers arising from:

  • Court judgments
  • Partition proceedings
  • Execution sales

→ May proceed without prior DAR clearance, subject to court authority.

Legal Basis:

  • Rules of Court
  • Recognized exception in practice and administrative interpretation

6. Lands Not Covered by CARP

Rule:

If land is outside CARP coverage, clearance is not required.

Examples:

  • Lands with slope > 18%
  • Lands classified as forest, mineral, or protected areas
  • Lands proven to be non-agricultural in use/classification

Legal Bases:

  • RA 6657, Sec. 10 – exclusions
  • DAR issuances on coverage/exclusion

7. Certain Small or De Minimis Transfers (Limited/Conditional)

Rule:

Some DAR issuances recognize limited exemptions for very small parcels or specific situations.

Legal Basis:

⚠️ Note:

  • This is not automatic; usually requires DAR certification of exemption
  • Registry of Deeds often still requires proof from DAR

8. Temporary Acquisition by Banks (Foreclosure)

Rule:

Banks acquiring agricultural land via foreclosure may hold property without clearance.

Limitation:

  • Resale to third parties requires DAR clearance

Legal Basis:


III. IMPORTANT DISTINCTION

Even when exempt from DAR clearance, the following may still be required:

  • DAR Certification of Non-Coverage / Exemption
  • DAR Conversion Order (if applicable)
  • Compliance with retention limits (5 hectares)

👉 The Registry of Deeds typically will not proceed without DAR confirmation, even for exempt cases. 

Monday, May 5, 2025

Land use conversion exemptions

Here’s a comprehensive list of land and project categories that are exempt from land use conversion requirements in the Philippines, along with their corresponding legal bases:

I. Exempt Lands (No DAR Conversion Clearance Required)

1. Lands Already Classified as Non-Agricultural Before June 15, 1988

  • If land was zoned as residential, commercial, industrial, or institutional before the effectivity of the Comprehensive Agrarian Reform Law (CARL), it is exempt.
  • Legal Basis:
    • Section 65, RA 6657 (CARL)
    • DAR Administrative Order (AO) No. 1, Series of 2002, Section III(A)

2. Lands Reclassified by LGUs Under RA 7160 (Local Government Code)

  • Land reclassified from agricultural to non-agricultural by LGUs, after consultation with DAR and approval by HLURB/DHSUD, is exempt from DAR conversion, provided:
    • The reclassification was done within the limits of LGU authority; and
    • DAR was notified within 30 days.
  • Legal Basis:
    • RA 7160, Sections 20 and 447
    • DAR AO No. 1, Series of 2002, Section III(C)


II. Exempt Projects (Government or BOT Initiatives)

3. Government Infrastructure Projects

Includes:

  • Roads, highways, and irrigation systems
  • Public schools, hospitals, and government buildings
  • Transmission and communication lines
  • Disaster response or resettlement programs

Exempt from conversion if:

  • Implemented by a government agency or LGU
  • Located on land already acquired or owned by the government
  • Legal Basis:
    • DAR AO No. 1, Series of 2002, Section III(B)
    • DAR Memo Circular No. 7, Series of 201

4. Projects Under the Build-Operate-Transfer (BOT) Law

  • Public infrastructure is undertaken by private entities under government partnership programs.
  • Includes toll roads, power plants, water systems, etc.
  • Legal Basis:
    • RA 6957, as amended by RA 7718 (BOT Law)
    • DAR Memo Circular No. 18, Series of 1999

III. Other Specific Exemptions

5. Agrarian Reform Beneficiary (ARB) Housing Projects

  • ARBs may use awarded lands for housing purposes under DAR guidelines.
  • Conversion may not be required if housing supports agrarian reform objectives and gets DAR clearance.
  • Legal Basis:
    • DAR AO No. 5, Series of 2006

6. Ecozones, Resettlement, and Special Government-Designated Areas

  • Areas legally declared as economic zones, resettlement sites, or public development projects under national legislation or executive orders may be exempt.
  • Legal Basis:
    • Special laws (e.g., PEZA Law – RA 7916), proclamations, and Presidential Decrees

Summary Table of Exemptions and Legal Bases

Exempt Category

Legal Basis

Pre-1988 Non-Agricultural Zoning

RA 6657 §65; DAR AO 01-2002, Sec. III(A)

LGU Reclassification under RA 7160

RA 7160 §§20, 447; DAR AO 01-2002, Sec. III(C)

Government Infrastructure Projects

DAR AO 01-2002, Sec. III(B); DAR Memo Circular 7-2011

BOT and PPP Projects

RA 6957 as amended by RA 7718; DAR Memo Circular 18-1999

ARB Housing

DAR AO 05-2006

Ecozones or Legally Declared Public Projects

RA 7916 (PEZA Law); other enabling laws or proclamations


FEATURED POST

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 – Pro...