CONVEYANCES AND ILLEGAL TRANSFERS

PERTINENT PROVISIONS OF LAW, DAR GUIDELINES AND DOJ OPINION I. Sections 6, 27, 70, 73 (a) and 78 of R.A. No. 6657

II. DAR A.O. No. 01, Series of 1989 (Rules and Procedures Governing Land Transactions)

III. DAR A.O. No. 08, Series of 1995 (Rules and Procedures Governing the Transferability of Lands Awarded to ARBs Pursuant to P.D. No. 27, as Amended by E.O. No. 228 and R.A. No. 6657) IV. DAR M.C. No. 02, Series of 2001 (Guidelines on Annulment of Deeds of Conveyance of Lands Covered by the CARP Executed in Violation of Section 6, Par. 4 of R.A. No. 6657)
V. Joint DAR-LRA M.C. No. 16, Series of 2004 (Strengthening the Safeguards on Transfer or Conveyance of Agricultural Lands Covered by CARP Pursuant to RA 6657)

VI. DAR M.C. No. 18, Series of 2004 (Clarificatory Guidelines on the Coverage, Acquisition and Distribution of Agricultural Lands Subject of Conveyance Executed in Violation of Sec. 6, Par. 4 of R.A. No. 6657) VII. DOJ Opinion No. 41, Series of 1992 (VOS)

PERTINENT PROVISIONS OF R.A. NO. 6657

A. Paragraphs 1 and 4, Section 6, R.A. No. 6657

. . . . . In no case shall retention by the landowner exceed five (5) hectares. . . . . (emphasis supplied)
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Upon the effectivity of this Act (15 June 1988), any sale, disposition, lease, management contract or transfer of possession of private lands executed by the original landowner in violation of this Act shall be null and void; Provided, however, that those executed prior to this Act shall be valid only when registered with the Register of Deeds within a period of three (3) months after the effectivity of this Act . . . . . (emphasis supplied)

B. Section 27, R.A. No. 6657

SECTION 27. Transferability of Awarded Lands. Lands acquired by beneficiaries under this Act may not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP, or to other qualified beneficiaries for a period of ten (10) years. (emphasis supplied)
C. Section 70, R.A. No. 6657 SECTION 70. Disposition of Private Agricultural lands. The sale or disposition of agricultural lands retained by a landowner as a consequence of Section 6 hereof shall be valid as long as the total landholdings that shall be owned by the transferee thereof inclusive of the land to be acquired shall not exceed the landholding ceiling provided in this Act.

Any sale or disposition of agricultural lands after the effectivity of this Act found to be contrary to the provisions hereof shall be null and void. (emphasis supplied)

D. Section 73 (a), R.A. No. 6657

SECTION 73. Prohibited Acts and Omissions. - The following are prohibited:

The ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by farmer-beneficiaries. (emphasis supplied)

E. Section 78, R.A. No. 6657 SECTION 78. Effectivity Clause. - This Act shall take effect immediately after publication in at least two (2) national newspapers of general circulation. (emphasis supplied) F. Item II.2.a of DAR A.O. No. 1, Series of 1989 (Rules and Procedures Governing Land Transactions)

B. The following transactions are not valid: 1. Sale, disposition, lease, management contract or transfer of possession of private lands executed by the original landowner prior to June 15, 1988, which are not registered on or before September 13, 1988, or those executed after June 15, 1988, covering an area in excess of the five-hectare retention limit in violation of R.A. 6657. (emphasis supplied)

Highlights and Conclusions on the Provisions of Section 6, 70, 73 (a) and 78 of R.A. No. 6657 and DAR A.O. No. 1, Series of 1989 (Rules and Procedures Governing Land Transactions) transfers/sales on or after 15 June 1988 (effectivity of CARP) should meet the twin requirements of retention limit and landownership ceiling of 5 hectares in order to be legal and valid cut-off or reckoning date should always be the effectivity of CARL on 15 June 1988 pursuant to Section 78 of R.A. No. 6657 and by operation of law Transferor may only transfer his/her retained area while the excess thereof shall be covered under CARP If transferor transfers/sells his/her 5-hectare retained area or have it converted, the same shall already constitute his retained area. Thus, he is no longer entitled to another 5hectare retained area

 transferee may only own an aggregate of 5 hectares inclusive of the land to be acquired (landownership ceiling). He cannot later transfer/sell and then acquire again beyond said 5-hectare landownership ceiling. DAR Clearance to be issued by the PARO (not the RD) is required to prevent circumvention of R.A. No. 6657 and for purposes of monitoring (A.O. No. 01, Series of 1989) Affidavits of transferors and transferee shall be required transfer executed before 15 June 1988 valid only if registered within 3 months after effectivity of CARL (on or before 13 September 1988). except if to be offered under VOS (DOJ Opinion No. 41, Series of 1992) still valid even if registered after 13 September 1988 since it will end up in DARs hands anyway for distribution to qualified ARBs

 if not qualified as preferred beneficiaries (i.e, qualification requirements of 15 years old and actually cultivating or directly managing the farm), the children will only be entitled to the compensation beyond the landowners 5hectare retention limit which shall be covered by CARP by operation of law effective 15 June 1988 (the reckoning or cut-off date) In case of illegal transfer after 15 June 1988 1) DAR Memorandum Circular No. 2, Series of 2001 file a petition for annulment of deed of conveyance before the PARAD and to direct the ROD to cancel the deed of conveyance and the TCT generated. Legal bases are Section 50 of R.A. No. 6657 (DARs exclusive and original jurisdiction on agrarian reform matters) and Rule II, Section 1 of the DARAB Rules of Procedure

2) Who will be the Payee, the original landowner or the transferee who is now the registered owner/titleholder?
new guidelines presently being drafted

Section 27, R.A. No. 6657 and A.O. No. 8, Series of 1995 (Transferability of Awarded Lands) 10-year prohibitory period Exceptions: hereditary succession, government, LBP and other qualified beneficiaries After 10 years from Award (Collective or Individual): Concurrence of lapse of 10 years and full payment

Further limitations/conditions:
1) Maintain agricultural productivity 2) Impose 5-hectare ownership ceiling 3) DAR Clearance to be issued by the RD 4) Change in the nature of use not allowed unless approved by DAR under its rules on conversion or exemption

 TCT shall be issued to the transferee ARB who shall dispose no longer qualified to become an ARB

M.C. No. 16, Series of 2003 (Strengthening the Safeguards on Transfer or Conveyance of Agricultural Lands Covered By CARP Pursuant to R.A. No. 6657) to prevent illegal transfers and for proper monitoring, the original copies of titles of lands covered under CARP shall be segregated from the regular file of the ROD to a separate CARP Volume CARP volume treated as restricted volume subject to DAR clearance from PARO pursuant to DAR A.O. No. 1, Series of 1989 (Rules and Procedures Governing Land Transactions) title from CARP Volume shall only be returned to the ROD regular file upon Proof of exemption from CARP coverage in the form of a final DAR or Court Order

M.C. No. 18, Series of 2003 (Clarificatory Guidelines on the Coverage, Acquisition and Distribution of Agricultural Lands Subject of Conveyance Executed in Violation of Sec. 6, Par. 4 of R.A. No. 6657) It is the policy of the DAR to acquire and distribute all lands covered by the CARP including those subject of illegal transactions under par. 4, Sec. 6 of R.A. No. 6657 Failure to register a deed of sale executed before June 15, 1988 on or before September 13, 1988 or within three months from the effectivity of R.A. No. 6657 renders the sale invalid and therefore not registrable (LRA Consulta No. 1875) No application for exemption, conversion, exclusion and petition to lift CARP coverage, or any other protest or opposition against CARP coverage shall be accepted if the property involved is a subject of conveyance executed in violation of Sec. 6, par. 4 of R.A. No. 6657

 Forward the case to the MARO and PARO for the conduct of investigation and filing of petition for annulment of the deed of conveyance, where proper, before the PARAD pursuant to DAR MC 02-01. Notwithstanding the pendency of the investigation and/or the petition for annulment of deed of conveyance, the DAR shall issue a notice of coverage. Deposit to be held in trust for the rightful owner/s.