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

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

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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

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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)

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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

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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)

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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

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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

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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:

• DAR Administrative Orders (case-to-case application)

⚠️ Note:

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

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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:

• Banking laws + DAR administrative practice

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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.