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Showing posts with label exemptions. Show all posts
Showing posts with label exemptions. Show all posts

Thursday, June 26, 2025

Exemptions from DAR Clearance for transfer of agricultural lands

In the Philippines, the Department of Agrarian Reform (DAR) Clearance is generally required before transferring ownership of agricultural lands to ensure that such transfers comply with agrarian reform laws. However, there are specific exemptions from the requirement to secure DAR Clearance. These exemptions are outlined in various laws, especially in DAR Administrative Orders (AOs) and Republic Act No. 6657, as amended.

Common Exemptions from DAR Clearance Requirement for Land Transfers:

1. Land not classified as agricultural

   * Lands already classified as residential, commercial, industrial, or other non-agricultural uses before June 15, 1988 (effectivity of RA 6657).

  * Lands reclassified by local government units (LGUs) before June 15, 1988, as non-agricultural, supported by proper documentation.

2. Retention Area of Landowners

   * Lands retained by landowners under the retention rights provided in agrarian laws, especially if not tenanted or not subject to CARP coverage.

3. Transfer through Succession

   *Transfers of land ownership via hereditary succession (e.g., inheritance) do not require DAR clearance.

4. Landholding below CARP coverage limit

   * Agricultural lands with a total area of five (5) hectares or less owned by a person not already owning other agricultural lands may be exempt if not under CARP coverage.

5. Exempt under DAR AO No. 6, Series of 1994 (as amended)

   Lands that were exempted or excluded from CARP coverage due to being:

     * Government reservations

     * Forest lands

     * Pasture lands

     * Watershed areas

     * Mineral lands

     * National parks

6. Land acquired before CARP and tenanted land already covered by Emancipation Patents (EPs) or Certificates of Land Ownership Award (CLOAs)

* Requires an Order approving the transfer of EP/CLOA pursuant to DAR A.O. No. 08, Series of 1995

7. Transfer to government agencies or local government units for public use, e.g., for roads, school sites, government housing, etc.

8. Conveyance involving corporate restructuring

* Internal transfer of ownership within the same corporate group without change in beneficial ownership, subject to proper documentation and DAR confirmation.

Important Notes:

* Even if exempt, it is often advisable to apply for a Certificate of Exemption or a Certification from DAR to avoid issues at the Register of Deeds (ROD).

* If the land is covered by CARP, transfers may be restricted and require DAR clearance regardless of the buyer or purpose.

* Always check the latest DAR Administrative Orders and consult the Municipal or Provincial DAR Office for the most accurate and case-specific guidance.


Legal bases and key issuances for the exemptions from securing DAR Clearance for the transfer of agricultural land:

1. Republic Act No. 6657, as amended (Comprehensive Agrarian Reform Law)

*Section 3(c) – Defines agricultural land.

*Section 4 – Lists lands covered under CARP, which implies that non-agricultural lands are not subject to agrarian reform requirements.

*Section 6 – Grants landowners the right to retain 5 hectares, exempting these lands from redistribution.

*Section 6 (second paragraph) – Landowners may transfer retention areas to heirs without clearance.

2. DAR Administrative Order (AO) No. 1, Series of 1989

*Subject: Rules and Procedures Governing the Acquisition and Distribution of Private Agricultural Lands

*Provides guidelines on the issuance of DAR Clearance for land transfers and enumerates cases exempt from the requirement.

3. DAR Administrative Order No. 1, Series of 2002

*Subject: 2002 Comprehensive Rules on Land Use Conversion

*Section 4 – Exempts lands classified as non-agricultural before 15 June 1988 from DAR coverage, hence not requiring DAR Clearance.

*Legal basis for the exemption of non-agricultural lands from agrarian reform.

4. DAR AO No. 7, Series of 2011

*Subject: Rules and Procedures Governing the Acquisition and Distribution of Agricultural Lands under CARP

*Clarifies that lands not classified as agricultural or not covered under CARP are exempt from the issuance of DAR Clearance.

5. DAR Memorandum Circular No. 18, Series of 1997

*Subject: Transfer of Ownership of Agricultural Lands

* Clarifies that transfer of agricultural lands by hereditary succession is exempt from DAR Clearance.

6. DOJ Opinion No. 44, Series of 1990

*States that lands reclassified to non-agricultural use before June 15, 1988, by LGUs or other agencies are outside the coverage of CARP.

7. DAR AO No. 6, Series of 1994

*Subject: Guidelines for the Exclusion of Landholdings Forming Part of the Forest Zone, Mineral Lands, National Parks, etc.

*Serves as the basis for exemption of non-CARP areas such as forest reserves, national parks, and military reservations.


 

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