AGRI LAW AND CARPER

1. Land Reform concept of conventional and revolutionary measures intended to correct certain
defects in the relationship between landowner and tiller concerning their rights and obligations in
the cultivation and management of landholding.

2. AGRARIAN REFORM – refers the redistribution of lands to the farmers and regular farmworkers:
1. Who are landless irrespective of tenurial arrangement
2. Regardless of the crops or fruits produced
3. To include the totality of factors and support services designed to lift the economic status of
the beneficiaries and
4. All other arrangement alternatives to the physical redistribution of lands such as:
a. Production or
b. Profit-sharing
c. Labor administration and
d. The distribution of shares of stock.
5. That will allow beneficiaries to receive a just share of the fruits of the land they work on

3. IN 1987 CONSTITUTION PROVISION ON AGRARIAN REFORM PROGRAM

1. SECTION 21, ART II – The State shall promote comprehensive rural development and
agrarian reform
2. SECTION 1, ART XII – The State shall promote industrialization and full employment based
on sound agricultural development and agrarian reform
3. SECTION 4, ART XIII – The State shall undertake an agrarian reform program founded on
the right of farmers and regular farmworkers who are landless
4. SECTION 5, ART XIII – The State shall recognize the right of farmers, farmworkers and
landowners
5. SECTION 6, ART XIII – The State shall apply the principle of agrarian reform or stewardship
in the disposition and utilization of other natural resources including lands
6. SECTION 6, ART XIII – The State shall resettle landless farmers and farmworkers in its own
agricultural estate

4. EXECUTIVE ORDER NO. 228 – aims to complete the operation of transferring land of tenanted
rice and corn lands under P.D No 27 and to accelerate the payments to the landowner of those lands
transferred to farmer beneficiaries. The farmer-beneficiary can sell the land awarded under EO#228
pertaining to rice and corn lands acquired under PD No. 27 only after full payment of amortizations.

5. EXECUTIVE ORDER NO. 299 – provides the mechanism for the implementation of the CARP
involving other agricultural lands.

6. LAND TENURE STRUCTURE – refers to the concept that connotes one or more types of land tenure
system regulating.

7. AGRICULTURAL LAND – refers to

1. Alienable and disposable land under Public Land Act (CA#141) and only agricultural lands
can be transferred or alienable to private persons (natural or judicial)
2. Those lands that are devoted to agricultural activities and not classified as mineral, forest,
residential, commercial or industrial lands.
 AGRI LAW AND CARPER

8. AGRARIAN STRUCTURE – refers to the complete set or relationship within the Agricultural sector
between tenure structure, production structure and structure of supporting services.

9. AGRICULTURAL TENANCY – refers to the manner of holding agricultural lands involving the
question of whether share or leasehold tenancy should be adopted.

10. NON-AGRICULTURAL LANDS

1. Forest or Timberlands
2. Industrial lands
3. Residential lands
4. Mineral lands
5. Commercial lands.

11. CLASSIFICATION OF LANDS OF PUBLIC DOMAIN (Sec.3, Art. XII, 1987 Philippine Constitution)
1. PRIMARY – refers to land classification for the first time (Key: MAF/T-NP)
• MINERAL LANDS
• AGRICULTURAL LANDS
• FOREST OR TIMBER LANDS
• NATIONAL PARKS
2. SECONDARY – refers to further or reclassification of lands to other uses
• RESIDENTIAL LANDS
• INDUSTRIAL LANDS
• COMMERCIAL LANDS

12. INSTANCES ON AGRICULTURAL LAND RECLASSIFICATION

1. When its ceases to be economically feasible and sound for agricultural purposes as
determined by the Department of Agriculture (DA) or
2. When it can have substantially greater economic value for residential, commercial or
industrial purposes as determined by the local Sanggunian(Art.38,RA#7160)

13. SHARE TENANCY – system of landholding, tillers work the land as sharecroppers entitled to
share in the produce of the land.
14. Lands of public domain become private lands when it is acquired by private individuals either by
purchase, homestead or grant.

15. Foreigners are not allowed to own lands in the Philippines. (Section 3 Article XII of 1987
Philippine Constitution) Persons authorized to classify and reclassify lands
1. PRESIDENT OF THE PHILIPPINES – for primary classification of lands of the public domain
as recommended by DENR (CA#141&Sec.6,EO 192)
2. CITIES AND MUNICIPALITIES – to reclassify agricultural lands through an ordinance
enacted by the Sanggunian after public hearings (Art.38RA#7160)

16. LIMITATIONS OF LGUS TO RECLASSIFY AGRICULTURAL LANDS {Section 1 (c & d) Malacañang

Memorandum Circular No. 54, Series of 1993)
1. TO FURTHER RECLASSIFY –
• HIGHLY-URBANIZED AND INDEPENDENT COMPONENT CITIES – 15%
• COMPONENT CITIES AND 1ST TO 3RD CLASS MUNICIPALITIES – 10%
 AGRI LAW AND CARPER

• 4TH TO 6TH CLASS MUNICIPALITIES – 5%

2. NOT TO FURTHER RECLASSIFY –
• Lands distributed to agrarian reform beneficiaries
• Lands already issued a notice of coverage or voluntary offered for CARP coverage
• Lands identified as non-negotiable for conversion

17. PUBLIC LANDS – refers to lands of public domain subject to alienation and disposed by the State
(Republic of the Philippines) in accordance with CA#141-Public Land Act as:
1. UNAPPROPRIATED LANDS – not acquired by private persons, corporations or judicial
entities by grantor purchase
2. NOT HELD BACK or reserved for any special government or public purpose and
3. OPEN TO ENTRY AND SETTLEMENT

18. Private corporations or associations may not be allowed to hold alienable lands of the public
domain, except: (Sec. 3, Art.XI, 1987 Philippine Constitution)
1. By lease for a period nor exceeding 25 years renewable for not more than 25 years with
an area not to exceed 1,000 hectares
2. Filipinos or citizens of the Philippines may lease not more than 500 hectares

19. FILIPINO CITIZENS are –

1. Those who are citizen of the Philippine at the time of the adoption of the 1987 Constitution
2. Those whose fathers and mothers are citizens of the Philippines
3. Those born before January 17, 1973 of Filipino mothers and who elect Philippine
citizenship upon reaching the age of majority and
4. Those who are naturalized in accordance with law

20. RA#6657 – an
1. Act instituting a Comprehensive Agrarian Reform Program (CARP) to promote social justice
and industrialization
2. Is the Agrarian Reform Program of the government
a. For the welfare of the landless farmers and farmworkers
b. Who are landless to own directly or collectively the lands they till or
c. For the farmworkers to receive a just share of the fruits the land they are tilling
3. Conceive as redistribution of all public and private agricultural lands, regardless of crop or
tenurial arrangement
a. To landless farmers and regular farmworkers’
b. To include all the necessary support services designed to improve their economic
status
4. Effective on June 15, 1988

21. PRINCIPLES OF POLICIES OF RA#6657.

1. Promote social justice and to move the nation toward sound rural development and
industrialization and the establishment of owner- cultivators of economic-size farms as the
basis of Philippine agriculture
2. Have more equitable distribution and ownership of land of land with due regard to the rights
of landowners to just compensation and to the ecological needs of the nation
3. Greater productivity of agricultural lands to provide farmers and farm workers with the
opportunity to enhance their dignity and improve the quality of their lives
 AGRI LAW AND CARPER

4. Agrarian Reform program is founded on the right of farmers and regular farm workers who
are landless to own directly or collectively the lands they are tilling or in the case of other
farmworkers, to receive a just share of the fruits of the farm they are working
5. Recognize participation of farmers, farm workers and landowners, as well as cooperative and
other independent farmers’ organization in the planning, organization, and management of
the program
6. Provide support to agriculture through appropriate technology and research, and adequate
financial, production, marketing and other support services
7. Apply the principles of agrarian reform, or stewardship, whenever applicable, in accordance
with law in the disposition or utilization of other natural resources, including lands of the
public domain, under lease of concession, suitable to agriculture subject
8. Provide support to agriculture through appropriate technology and research, and adequate
financial, production, marketing and other support services
9. Resettle farmers and farm workers in its own agricultural estates which shall be distributed
to them in a manner provided by law
10. Apply the principles of agrarian reform or stewardship, whenever applicable, in accordance
with law in the disposition or utilization of other natural resources including lands of the
public domain under lease of concession suitable to agriculture subject to prior rights,
homestead right of small setters and the right of indigenous communities to their ancestral
lands
11. Encourage the formation and maintenance of economic-size family farms to be constituted
by individual beneficiaries and small landowners
12. Guided by the principles the land has a social function and landownership has a social
responsibility. Owners of agricultural and have the obligation to cultivate directly or through
labor administration the lands they own and make lands productive.
13. Provide incentives to landowners to invest the proceeds of the agrarian reform program to
promote industrialization, employment and privatization of public sector enterprises.
14. May lease undeveloped lands of the public domain to qualified entities for the development
of capital-intensive farms and tradition a land pioneering crops especially those foe exports
subject to the prior rights of the beneficiaries under RA6657..

22. COMPONENTS OF CARP

1. LAND TENURE IMPROVEMENT – geared towards making the actual tiller an owner of the
land he/she is tilling and providing support to make the land productive and profitable
2. AGRARIAN JUSTICE DELIVERY – to pursue speedy and fair settlement of agrarian disputes
and delivery of agrarian reform justice
3. PROGRAM BENEFICIARIES DEVELOPMENT – approach by DAR to reinforce the
complementation of support services delivery and contribute to increasing productivity and
improving the lives and well-being of the beneficiaries

23. COVERAGE OF CARP – it covers all public and private agricultural lands, regardless of tenurial
arrangement and commodity or agricultural product specifically as follows:
1. As provided in Proclamation No. 131 and EO No. 229
2. Alienable lands of the public domain devoted or suitable for agriculture
3. Public domain in excess of the limits set by law or determined by Congress
4. Owned by the Government devoted to or suitable for agriculture and
5. Devoted to or suitable for agriculture
 AGRI LAW AND CARPER

24. Untenanted agricultural lands are covered by CARP because the program covers all public and
private agricultural lands regardless of whether they are tenanted or not.

25. Agricultural lands reclassified by LGU as forest conservation zones can still be covered by CARP
because it is only the can only the President of the Philippines who has the power to reclassify
agricultural lands to forest land being a primary classification.

26. Agricultural lands reclassified by the LGUs into residential, industrial or commercial may still be
covered by CARP when –
• There classification was done after
June15,1988(DARAdministrativeOrderNo.6,s1994), of which the landowner has to
apply for exemption and land conversion (Sec.65, RA#6657; DAR Adm. Order No. 1,
S1999).
However, when the reclassification was done before June 15, 1988 and was approved
by HLURB, the land is not covered. Further, exemption clearance from DAR is still
necessary to confirm or declare its exemption status (DAR Admin. Order No.1,S1999)

27. Agricultural lands covered by Development Permit before the effectivity or enactment of RA6657
is exempted from the coverage of CARP.

28. Lands foreclosed and owned by government financial institutions and other instrumentalities of
the government is covered by CARP if these lands are suitable for agriculture. (Sec.1,EO#407).

29. PRIVATE LANDS – refers to lands which are:

1. Acquired through various mode of land acquisition
2. Granted by the State
3. Owned by natural or juridical persons and
4. Segregated from the lands of the public domain

30. AGRICULTURAL ACTIVITY – means

1. Cultivation of soil
2. Reaping or harvesting of farm projects
3. Other operations or activities or practices performed by farmers in conjunction with the
farming operations
4. Planting of crops, growing of fruit trees

31. EXEMPTED FROM CARP – means an immunity or privilege or not included from the coverage.
Excluded from CARP – means the land was not placed under or has been removed from CARP
coverage

32. LANDS EXEMPTED FROM THE COVERAGE OF CARP (Section 10, RA#6657; DAR
AO#13,S1990)(Key: Pade-home-lives-leasehold)
1. Private lands actually, directly and exclusively (Pade) used for prawn farm and fishpond
provided have not yet been distributed and issued with Certificate of Land Ownership Award
(CLOA) to CARP beneficiaries (Section 10 (c), RA#6657 as amended by RA#7881)
2. All home steads cultivated by original homestead and grantees or their direct compulsory
heirs
 AGRI LAW AND CARPER

3. Lands devoted to raising for livestock, poultry and swine (Luz Farms vs. DAR, Sec.192 SCRA
51, 1990)
4. Lands retained area of landowners not covered under leasehold

33. LANDS EXCLUDED FROM THE COVERAGE OF CARP (Section 10, RA#6657; DAR AO#13, S1990)
(Key: defense-reclass-18% slope- protected)
1. Lands for national defense, schools sites and campuses including experimental farm stations
operated by public or private schools for educational purposes, seeds and seedling research
and pilot production centers, church sites, mosque sites and Islamic center, communal burial
grounds and cemeteries, penal colonies and penal farms actually worked by the inmates,
government and private research quarantine centers
2. Agricultural lands reclassified as residential, commercial or industrial thru a zoning
ordinance and have been approved by HLURB before June 15, 1988
3. All lands with 18% slope and more except those that are already developed as of June 15,
1988 (as amended by RA#7881,1995)
4. Protected areas for ecological purposes such as – (Section 10, RA#6657) as amended by
RA#7811, 1995 and PD705, 1975)
• Parks
• Wildlife
• Forest reserves
• Reforestation
• Fish sanctuaries and breeding grounds
• Watersheds and mangroves
34. PROTECTED AREA – refers to identified portion of land and water set by reason of their unique
physical and biological significance managed to enhance biological diversity and protected against
destructive human exploitation being not arable and not classified as agricultural lands like:
1. Habitat of all life forms- and primary source of food web to ensure biodiversity
2. Part of cultural heritage – national parks and national monuments
3. Needs areas to maintain ecological balance – fish, birds and animal sanctuaries,
rainforests and the like

35. CONDITIONS WHEN PROTECTED AREAS CAN BE COVERED BY CARP.

1. Land or a portion thereof are no longer actually, directly or exclusively used as designated
2. Are suitable for agriculture and
3. Declared/reclassified as alienable and disposable.
All these lands or a portion thereof shall be segregated from reservation and transferred to
DAR for distribution to qualified CARP beneficiaries (Section1,Executive Order No.44)

36. RETENTION LIMIT – refers to the size of land an individual owner will be allowed to keep or
retain whether he/she is a cultivator or not.

37. RETENTION LIMIT UNDER CARP:

1. FOR LANDOWNER (natural or juridical person) – land area of not more than 5 hectares;
however:
i. Under PD#27, a landowner may retain not more than 7 hectares if it is cultivating
the area or will cultivate it
 AGRI LAW AND CARPER

ii. Original homestead grantees or their direct compulsory heirs who still own the
original homestead may retain 24 hectares as long as they continue to cultivate
the homestead
2. FOR INDIVIDUAL LAND OWNER CHILDREN – land area of not more than three (3)
hectares per child
3. FOR CORPORATION ON LEASE, management grower or service contract – land area of not
more than 1,000 hectares and
4. FOR FOREIGN INDIVIDUALS ON LEASE, management grower or service contract – land area
of not more than 500 hectares.

38. PD #27(1972) – decree Proclaiming the entire country as Land Reform area and Decreeing the
Emancipation of the tenants from the bondage of the soil, transferring them the ownership of the
land they till.

39. QUALIFICATIONS OF THE LANDOWNER CHILDREN:

1. At least 15 years old
2. Actually tilling the land or directly managing the farm at the time of the effectivity of the CARL
and
3. Have not acquired any land ownership

40. Beneficiaries who were awarded with lands under CARP may not sell, transfer or convey lands
awarded for a period of ten (10) year, except:
1. Through hereditary succession
2. To the government or to LBP
3. Other qualified beneficiaries

41. THE RETENTION LIMITS FOR MARRIAGE COUPLE

1. Under the Civil Code, in the absence of an agreement for the judicial separation of property
• Spouses who owns conjugal properties may retain a maximum of 5 hectares
• If either or both of them have more than 5 hectares from their respective landholdings it
must not exceed August 3, 1988
2. Under the Family Code, effective August 3, 1988
• A husband owning capital property and/or a wife owning paraphernal property may
retain not more than 5 hectares each provided, they executed a judicial separation of
properties prior to the marriage
• In the absence of thereto, all properties whether capital or paraphernal and conjugal shall
be considered to be held in absolute community and shall only retain a total of 5 hectares

42. The landowner has the right to choose the area to be retained which land shall be compact and
contiguous.

43. OPTIONS OF TENANT ON LAND SELECTED FOR RETENTION

1. To remain as leaseholder and forfeit the right to become beneficiary under CARP or
2. To be a beneficiary in the same land or another agricultural land

44. Tenant has to exercise the option to select within one year from the time the landowner makes
his choice of the area to be retained.
 AGRI LAW AND CARPER

45. COMMERCIAL FARMS – private agricultural lands devoted to commercial livestock, poultry and
swims raising, aquaculture, fruit farms, vegetable and cut flower farms, cacao, coffee and rubber
plantation. Commercial farms are subject to CARP coverage after 10 years of the effectivity of
RA#6657.

46. EXPROPRIATION – refers the right of the government to take the land, mineral rights or other
property from private owner’s possession for public use with payment of just compensation.

47. Just Compensation – refers to the full and fair equivalent of the property value taken from its
owner by the expropriator.

48. IDLE OR ABANDONED LANDS – are agricultural lands not cultivated, tilled or developed to
produce any crop nor devoted to any specific economic purpose continuously for a period of three
(3) years immediately prior to the receipt of notice of acquisition by the government as provided in
RA#6657 but does not include land that has become permanently or regularly devoted to agricultural
purposes. It does not include
land which has become unproductive by reason of force majeure or any other fortuitous event,
provided that prior to such event, such land was previously used for agricultural or other economic
purpose. (Sec. 3 (e), RA 6657).

49. EFFECTS OF RA#6657 TO THE ANCESTRAL LANDS

1. Protects the rights of indigenous cultural communities on their ancestral lands to ensure their
economic, social and cultural well-being
2. In autonomous regions, the systems of land ownership, land use and the modes of setting
disputes shall be recognized and respected

50. METHODS ADOPTED BY THE GOVERNMENT to acquire landholdings for distribution under
CARP (Key: CODER)
1. Compulsory acquisition
2. Voluntary Offer to Sell
3. Direct Payment Scheme or Voluntary Land Transfer
4. Through ExecutiveOrder407(1990) as amended by EO#448 and EO#506
5. Rice and Corn lands (Operation Land Transfer) under PD#27 and EO#228

51. COMPULSORY ACQUISITION – a mandatory land acquisition by the State of all private
agricultural lands in accordance with the procedure as described in Section16 of RA#6657. It is
undertaken if the landowner failed to comply with the VOS or DPS/VLT requirements.

52. VOLUNTARY OFFER TO SELL (VOS) – a mode of acquiring land where the landowners come
forward and voluntarily offer their agricultural lands for CARP coverage. These transactions are
exempt from payment of capital gains tax and other taxes and fees.

53. DIRECT PAYMENT SCHEME (DPS) OR VOLUNTARY LAND TRANSFER (VLT) – refers to a direct
transaction between the landowner of an agricultural land covered by CARP and the qualified
beneficiaries. Transactions under this mode are not exempted from payment of capital gains tax and
other fees (Sec. 20 &21,RA#6657)
 AGRI LAW AND CARPER

54. Rice and Corn lands (Operation Land Transfer) under PD#27 and EO#228 – are modes of
which the ownership of tenanted rice and corn lands are transferred to tenant beneficiaries.

55. Executive Order#407 as amended by EO#448 and EO#506, directs all government
instrumentalities including government financial institutions and government-owned and controlled
corporations to immediately transfer to DAR all their landholdings suitable for agriculture for
immediate distribution to qualified beneficiaries under CARP.

56. FACTORS TO CONSIDER IN DETERMINING JUST COMPENSATION (Key: CONSIDER Payment

Value)
1. Cost Of Acquiring The Land
2. Official Assessment By Lgu Assessors
3. Nature Of Land
4. Sworn Valuation By The Landowner
5. Income Of The Land
6. Declaration Of Taxes
7. Economic And Social Benefits Contributed By The Farmers/Farmworkers And The
Government
8. Real/Actual Use Of Land
9. Non-Payment Of Taxes And/Or Loans Secured From Government Financing Institutions
10. Current Value Of Like Properties

57. Formula for the valuation of lands covered by VOS or CA or under EO#407

LV = (CNI x 0.60)+(CS x 0.30)+(MV x 0.10)

Where: LV=Land Value

CNI=Capitalized Net Income (based on land use and productivity
CS=Comparable Sales (based on fair market value equivalent to 70% of BIR Zonal Value)
MV=Market Value per Tax Declaration (based on Government assessment)

58. Land Owner voluntarily offers the land for sale under CARP shall be entitled to 5% additional
cash payment.
1224. LAND BANK OF THE PHILIPPINES (LBP ) –
1. Shall be primarily responsible for the determination of land valuation and compensation for
all private land under Voluntary Offer to Sell (VOS) and Compulsory Acquisition (CA) as
governed by EO#405.
2. Can foreclose the mortgage of the redistributed property if the past due accounts reaches an
amount equivalent to at least three (3) annual amortization.
3. Is mandated to compensate the landowner on the amount that may be agreed upon the
Landowner and the Department of Agrarian Reform (DAR) under the CARP Law.
4. Payments to landowner can be made partly in cash and partly in kind or bonds depending
upon the total land area of which the larger landholding, the smaller the cash portion would
be based on the principle that the small land-owners are presumed to have greater need for
cash to aid them in their bid to shift their capital from agriculture to industry.

59. LAND OWNERS MAY BE PAID IN KIND THROUGH:

1. Shares of stocks in GOCCs, LBP preferred shares, assets or qualified investment
 AGRI LAW AND CARPER

2. Tax credits
3. Land Bank bonds

60. MODES OF COMPENSATION TO LANDOWNERS.

1. COMPULSORY ACQUISITION (CA):
2. CASH PAYMENT ACCORDING TO LAND SIZE
• Above 50 hectares – 25%
• 24 hectares to 50 hectares – 30%
• Below 24 hectares – 35%
3. SHARES OF STOCKS IN GOCCS
4. LBP BONDS
5. TAX CREDITS
6. VOLUNTARY OFFER TO SELL (VOS) – landowner will be paid under the same mode as
Compulsory Acquisition except the cash portion which is higher by 5%.
7. VOLUNTARY LAND TRANSFER (VLT) – landowner is to be paid directly in cash or in kind
by the farmer beneficiary under the terms they mutually agreed subject to DAR approval.
8. LANDHOLDINGS ACQUIRED UNDER PD#27 – payments to landowner are 10% in cash and
90% in LBP bonds.

61. Transfer of ownership transactions under RA#6657 are exempted from capital gains tax,
registration fees and all other taxes and fees for the transfer.

1228. CARP BENEFICIARIES are – landless residents belonging to one Barangay or municipality
based on the following order of priority: (Sec. 22, RA#6657)
1. Agricultural lessees or share tenants
2. Regular farmworkers
3. Seasonal farmworkers
4. Other farmworkers
5. Actual tillers or occupants of Public lands
6. Collectives or cooperatives of the above beneficiaries
7. Others directly working on the land

62. A Landless person is one who owns less than three (3) hectares of agricultural land (Sec. 25,
RA#6657)
63. QUALIFICATIONS OF CARP BENEFICIARY (Key: FLAW)
1. Filipino citizen
2. Landless
3. At least 15 years of Age or head of family at the time the property was transferred in the name
of the Republic of the Philippines and
4. Willingness, ability and aptitude to cultivate the land make it as productive as possible

64. Actual occupancy is the basis of DAR in awarding land provided the beneficiary landholding does
not exceed three (3) hectares.

65. Landowner has no right to select the beneficiaries. The latter should qualify under the law as
screened by the Municipal Agrarian Reform Officer (MARO) or the Agrarian Reform Program
Technologist (ARPT) with the participation of Barangay Agrarian Reform Com (BARC).
 AGRI LAW AND CARPER

66. Ownership of Agrarian Reform Beneficiary (ARB) shall be evidenced by either Emancipation
Patent (EP) under PD#27 or Certificate of Land Ownership Award (CLOA) under CARP (DAR
AO#2,1994 )

67. CONDITIONS FOR THE AGRARIAN REFORM BENEFICIARY (ARB) ownership to be transferred
to another beneficiary
1. After full payment of amortizations (Section 6, EO#228)
2. After the period often (10) years (Section 27, RA#6657)
3. Through hereditary succession by an heir – not subject to ten year period prohibition
(DAR AO#8, S1995).

68. CARP Awardee who disposed his/her landholdings shall not longer be qualified to become
beneficiary under CARP. (DAR AO#8, S1995) However, the children or spouse of the beneficiary has
the right to repurchase the acquired land transferred to DAR within two (2) years from the transfer.
(DAR AO#1,S1989).

69. In case of death of an ARB, the farm holding acquired by him/her under land transfer program
shall be transferred to his/her heirs in accordance with the New Civil Code provisions which farm
holdings should not be fragmented or split and the ownership should be placed under one heir who
possesses all the qualifications of a beneficiary.

70. RULES ON QUALIFIED HEIRS TO BE SOLE OWNER-CULTIVATOR.

1. Surviving spouse shall be given first preference
2. In absence or due to then permanent in capacity of the surviving spouse priority shall be
determined among the heirs according to age
3. In case there are several heirs and in the absence of extra-judicial settlement or waiver of
rights in favor of one heir who shall be the sole owner-cultivator of the land based on the
required qualification of an ARB within the period of a month
4. In case of disagreement or failure of the heirs to determine who among them shall be the sole
owner-cultivator, the farm holding shall be transferred collectively in the names of all the
heirs of the deceased beneficiary. (DAR AO#14, S1988)

71. If the surviving heirs are minors and not qualified, he/she shall be represented by the guardian
in cultivating the land until he/she qualifies.

72. OBLIGATIONS OF THE ARB.

1. Exercise the diligence of a good father/mother/heir of a family in the use, cultivation and
preservation of the land and the improvement thereon
2. Keep the land awarded to him/her intact and should not subdivide the land in favor of his/her
children/heirs. Even upon death of beneficiary, his/her heirs are not allowed to divide the
land into smaller units
3. Pay the required amount of land amortization
4. Not to neglect, abandon, misuse or sell the land

73. Beneficiaries shall pay to Land Bank 30 equal annual payments at six percent (6%) interest per
annum with two percent (2%) interest deduction if payment will be made on
time.(Section26,RA#6657).
 AGRI LAW AND CARPER

74. GROUNDS FOR CANCELLATION OF AWARDED CLOA.

1. Materials misrepresentation of the beneficiary’s basic qualifications
2. Sale, transfer, lease or other forms of conveyance
3. Misuse of the land causing substantial and unreasonable damage
4. Continuous neglect or abandonment for a period or two (2) calendar years
5. Failure to pay three (3) consecutive amortizations to LBP or to the landowner except in cases
of fortuitous events
6. Conversion of the awarded land to non-agricultural use
7. Waiver of rights to awarded lands
8. Surrender of awarded land to landowner or other non-beneficiary or
9. Misuse or diversion of financial and support services extended to the beneficiary

75. DEPARTMENT OF AGRARIAN REFORM (DAR ).

1. Has the exclusive authority to approve or disapprove applications for conversion of
agricultural lands to residential, commercial, industrial and other uses
2. Is vested with primary jurisdiction to determine and adjudicate agrarian reform matters and
shall have exclusive original jurisdiction overall matters involving the implementation of
agrarian reform except those falling under the exclusive jurisdiction of the Department of
Agriculture (DA) and DENR. (Section50,RA#6657)

76. DAR OFFICIALS AUTHORIZED/DISAPPROVE APPLICATIONS FOR CONVERSION.

1. REGIONAL DIRECTOR for lands not exceeding five (5) hectares
2. DAR UNDERSECRETARY for Legal Affairs for lands exceeding five (5) hectares up to fifty
(50) hectares and
3. DAR SECRETARY for lands exceeding fifty (50) hectares

77. DOJ OPINION NO. 44, SERIES OF 1990 provides that all agricultural lands which has been
classified as commercial, industrial or residential before June 15, 1988 does not need any conversion
clearance even if still devoted to agricultural activity.

78. Lands in Metro Manila or National Capital Region shall be covered by the Urban Land Reform Law
when they are located within 244 Areas for Priority Development (APD) sites.

79. DOCUMENTARY REQUIREMENTS FOR DAR CLEARANCE

1. Applications for DAR Clearance
2. Copy of Title, lot and vicinity plan
3. Seller’s affidavit of non-tenancy or tenant tenant’s affidavit of voluntary surrender
4. Seller’s affidavit that the hectare he is selling is his retention area
5. Buyer’s affidavit that the hectarage he is buying, together with his present agricultural
landholding does not exceed five-hectares
6. Provincial or Municipal assessor’s certification of seller’s and buyer’s extent of landholding
in the province or municipality and
7. Clearance from National Irrigation Authority

80. RA#9700 – refers to the Act strengthening the CARP and extending the acquisition and
distribution of all agricultural lands, etc.
 AGRI LAW AND CARPER

81. USUFRUCT – refers to a real right conferred on the beneficiary/usufructuary to enjoy the fruits
of the property of another with the obligation of preserving its form, substance and productivity.

82. SEASONAL FARMWORKER – refers to a natural person who is employed on a recurrent, periodic
or intermittent basis by an agricultural enterprise of farm, whether as a permanent or a non-
permanent laborer, such as dumaan, sacada and the like.

83. LANDLESS BENEFICIARY – is any farmer/tiller who owns less than 3 hectares of agricultural
land.

84. SHARE TENANT – who is not beneficiary but cultivates land belonging to others and pays a price
to the landholder under the leasehold tenancy system.

85. REGULAR FARMWORKER – refers to a natural person who is considered employed on a

permanent basis by a landowner engaged in an agricultural enterprise or farm.

86. BASIS ON THE COMPUTATION OF JUST COMPENSATION UNDER RA#9700.

1. Cost of land Acquisition
2. Value of the standing crop
3. Current value of similar properties
4. Its nature, actual use and income
5. Sworn valuation by the owner
6. Tax declaration and
7. Assessment made by the Assessors
8. 70% of BIR Zonal Value
9. The social and economic benefits contributed by the farmers and farmworkers and the
government to the property as well as non-payment of taxes or secured loans on the lands
shall be considered as additional factors to determine the land value

87. OMNIBUS INVESTMENT CODE (EO#226) –provides an Investor’ package either into
Development of Mass Housing, Fabrication of Mass Housing Components or Development of Business
Parks for Micro and SME’s like: Fiscal and non-fiscal tax incentives.

88. UNDER THE URBAN LAND REFORM LAW (PD 1517) an area is considered urban when it has
population density of at least 2,000 residents per square kilometer and where at least 50% of
economically active resident are engage in non-agricultural activities.
1256. ELEMENTS FOR TENANT’S RIGHT REFUSAL UNDER URBAN LAND REFORM LAW
(PD1517)
1. The land is located in the Urban Land Reform area
2. The tenants are legitimate tenants for at least ten (10) years and
3. The property owner is selling the property