Land Retention Rights

DAR ADMINISTRATIVE ORDER NO. 02-03

CRUZ, Christine Bernadette De los Santos, Jairus

Coverage
These rules and procedures shall apply to

ALL applications for retention under PD

27 and RA 6657.

P.D 27
In all cases, the landowner may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it;

When was P.D 27 effective?

effective

21 October 1972

R.A 6657
in no case shall retention by the landowner exceed five (5) hectares. Three (3) hectares may be awarded to each child of the landowner, subject to the following qualifications: (1) that he is at least fifteen (15) years of age, and (2) that he is actually tilling the land or directly managing the farm;

 That landowners whose lands have been covered by Presidential Decree No. 27 shall be allowed to keep the area originally retained by them.

WHY?

When was R.A 6657 effective?

effective 15 June 1988
Amended by R.A 9700----

effective 01 July 2009

Can the lands be sold, transferred, or conveyed?

NO. Provided that
That those executed prior to this Act shall be valid only when registered with RD within a period of three (3) months after the effectivity of this Act. RD shall inform the DAR within thirty (30) days of any transaction involving agricultural lands in excess of five (5) hectares.

Exception to RA 6657
Expropriation by LGU for PUBLIC PURPOSES

DOCUMENTARY REQUIREMENTS

What are the Documents needed?

1. LO who own lands of five (5) hectares or less 2. LO who own lands more than five (5) hectares + Compulsary Acquistion 3. If the retention area was chosen by the MARO 4. For untitled private agricultural lands

five (5) hectares or less

CARP-LAD Form No. 13 (Request for Certification of Retention) Landowners affidavit of sole and aggregate ownership of agricultural land nationwide

more than five (5) hectares + Compulsary Acquistion

To determine if the right of retention was exercised on time:
[ ] Notice of Coverage (NOC) [ ] Proof of receipt of NOC to the landowner or [ ] Publication of NOC

 To determine if the applicant is the proper party to exercise the right of retention: [ ] Proof of Ownership [ ] SPA , if the applicant is a representative of the landowner [ ] Articles of Incorporation and/or Secretarys Certificate of Authorization, if the applicant is a juridical person [ ] Certified true copy of marriage certificate, prenuptial agreement, judicial decree of separation of property, if the exercise of retention rights will touch on the landowner and his or her spouses property regime [ ] Sworn statement of personal cultivation and Barangay Agrarian Reform Council (BARC) attestation to such fact, if the applicant is a homestead grantee or is an heir of said grantee

if the applicant is an heir of the landowner:

[ ] Death Certificate of the landowner [ ] Birth Certificate of the applicant

And/plus [ ] A manifestation of the landowners intention to exercise his right of retention prior to 23 August 1990

To determine the choice of area to be retained and other matters:

[ ] Sketch map of the entire property [ ] Sworn Application for Retention, which requires information on the following:
Names of occupants on the land, their status, and the crops growing on the property Description of the parcels of land surrounding the chosen retention area, particularly the land use, crops cultivated, productivity level, etc. Complete list of children (if applicable), with copies of their birth certificates Previous land sales where the applicant was a seller or buyer Indicate where the area to be retained is located.

[ ] MAROs field verification and investigation report pertaining to information alleged in the application for retention [ ] Landowners affidavit of aggregate landholding nationwide

If the retention area was chosen by the MARO

NOC to and proof of receipt of NOC by the landowner MAROs field verification and investigation report pertaining to the determination of aggregate landholdings of the landowner, description of the area chosen for retention, and identification of occupants/tenants on the property MAROs notice to the landowner of his chosen retention area and proof of receipt of such notice

For untitled private agricultural lands

CENRO (for administrative confirmation of imperfect title ) or Certification from the clerk of court (for judicial confirmation of imperfect title) that the titling process or proceeding has commenced and there are no adverse claimants

For untitled land

must be a showing that
(a) alienable and disposable land of public domain; (b) that the one claiming ownership thereof or his predecessorsin-interest- have been in OCENO of the property (c) land is under bona fide claim of ownership since June 12, 1945 or earlier. If later than 12 June 1945, the occupation must be at least 30 years which must be counted from the time the land is declared alienable and disposable a declaration by the DENR that the land is no longer intended for public service or development of national wealth

WHO MAY EXERCISE RETENTION RIGHTS

1. Any person, natural or juridical, who owns agricultural lands with an aggregate area of more than five (5) hectares may apply for a retention area.

 This includes the husband or the wife as regards their exclusive properties. What if the land is conjugal property? The law is SILENT whether ONE spouse may validly apply for retention rights

Exception/Limitation
A landowner who exercised his right of retention under Presidential Decree (P.D.) No. 27 may no longer exercise the same right under Republic Act (R.A.) No. 6657.
If he has other agricultural lands that is, aside from his retained area under P.D. No. 27 - he can opt to retain five (5) hectares of these lands and the seven (7) hectares previously retained by him under P.D. No. 27 shall be placed under the Comprehensive Agrarian Reform Program (CARP).

2. A landowner who owns five (5) hectares or less of land which is not yet the subject of CARP coverage based on the schedule of implementation in Section 7 of R.A. No. 6657, may also file an application for retention. A Certificate of Retention will be issued in his favor.

3. The right of retention of a deceased landowner may be exercised by his heirs provided that the decedent landowner, during his lifetime, manifested his intention to exercise his right of retention prior to 23 August 1990 (SC; Association of Small Landowners in the
Philippines, Inc. vs. The Honorable Secretary of Agrarian Reform)

Period to Exercise Right of Retention under RA 6657

 For lands five (5) hectares and below:

AUTOMATIC EXCLUSION from coverage (hence there is no need to file an application for retention). In any case, the landowner may opt to request for the issuance of a Certification of Retention from the PARO.

 For lands of more than five (5) hectares under Compulsory Acquisition (CA): -LO shall choose his retained area within 30/60 days from receipt of NOC or date of publication of NOC.

 Failure to exercise the right to choose within the prescribed period shall constitute a waiver thereof. In which case the DAR, through the MARO, shall automatically choose for the landowner his/her retention area.

 For landholdings under Voluntary Offer to Sell (VOS), the landowner shall exercise his right of retention simultaneously at the time of the offer for sale of the subject landholding.

SUMMARY
LANDHOLDING STATUS TIMELINESS

5 hectares or less More than 5 hectares VOS

GR: NO NEED except for certain cases 30/60 days (Failure to exercise constitutes a waiver) Simultaneously at the time of OFFER for SALE of the subject landholding

Where to File Application

Regional Director or the Provincial Agrarian Reform Officer (PARO)

MARO

Waiver of the Right of Retention

Right of Retention is waived when

Failure to manifest an intention to exercise his right to retain within sixty (60) calendar days from receipt of notice of CARP coverage. 2. Failure to state such intention upon offer to sell or application under the VLT/DPS scheme. 3. Execution of any document stating that he expressly waives his right to retain. The MARO and/or PARO and/or Regional Director shall attest to the due execution of such document. 4/ Execution of a Landowner Tenant Production Agreement and Farmer's Undertaking (LTPA-FU) or Application to Purchase and Farmer's Undertaking (APFU) covering subject property.
1.

 6.5. Entering into a VLT/DPS or VOS but failing to manifest an intention to exercise his right to retain upon filing of the application for VLT/DPS or VOS. 6.6. Execution and submission of any document indicating that he is consenting to the CARP coverage of his entire landholding. 6.7. ESTOPPEL

AWARD OF RETENTION AREA

CRITERIA (PA2C-15)
private agricultural land; compact and contiguous and least prejudicial to the entire landholding and the majority of the farmers therein; LO execute an affidavit as to the aggregate area of his landholding in the entire Philippines; and LO submit a list of his children who are fifteen (15) years old or over as of 15 June 1988 and who have been actually cultivating or directly managing the farm since 15 June 1988 for identification as preferred beneficiaries, as well as evidence of such. LO execute an affidavit stating the names of all farmers, agricultural lessees and share tenants, regular farmworkers, seasonal farmworkers, other farmworkers, actual tillers or occupants, and/or other persons directly working on the land; if there are no such persons, a sworn statement attesting to such fact.

AREA allowed to be retained by LO covered by PD 27

DATE
If filed before 27 August 1985

Area to be retained 7 hectares It depends a. 7 hectares, provided if he complied with LOI Nos. 41, 45, and 52. b. 5 hectares if he did not comply

If filed after 27 August 1985

LIMITATIONS
Those who, as of 21 October 1972, owned more than twenty-four (24) hectares of tenanted rice and corn lands; (b) Those who owned less than twenty-four (24) hectares of tenanted rice and corn lands but additionally owned:
other agricultural lands of more than seven (7) hectares, whether tenanted or not, whether cultivated or not, and regardless of the income derived therefrom,

lands used for residential, commercial, industrial, or other urban purposes from which he derives adequate income to support himself and his family.

AREA allowed to be retained by LO covered by RA 6657

The landowner has the right to choose the area to be retained. The area chosen for retention must be compact and contiguous. The retained area must not exceed five (5) hectares.

 The five (5)-hectare retention limit applies to all lands regardless of how acquired (i.e. by purchase, award, succession, donation) as the law does not distinguish. WHAT DOES THIS MEAN?

Under DAR Administrative Orders

1. Under PROPERTY REGIMES 2. Regarding RETENTION of HEIRS

PROPERTY REGIMES
Coverage from family code For marriages not covered by the Family Code Area to be retained not more than five (5) hectares if: a. no agreement for the judicial separation of property between them, and b. Their agricultural lands are all conjugal. each of them may retain not more than five (5) hectares, but the couples total retention shall not exceed ten (10) hectares Same rules

For marriages not covered by the Family Code but either spouse or both of them are landowners in their own right For marriages covered by the Family Code

RETENTION OF HEIRS
Date of death If LO died before 15 June 1988 and the NOC was sent after his death Area to be retained each of his compulsory heirs is entitled to a maximum of five (5) hectares as retention area. CARP are only entitled to the five (5) hectare retention area of the deceased landowner

If LO died after 15 June 1988 and whose lands are covered under CARP

Effects Of The Exercise Of Retention Right. When Retained Area is tenanted

Area is Tenanted
the Tenant shall have the option to choose: 1) whether to remain therein as lessee or 2) be a beneficiary in the same or another agricultural land

Tenant declines to enter leasehold no land to transfer

The tenant he may choose" 1) To be paid disturbance compensation by agreement between the parties taking into consideration the improvements made on the land.

Compensation must not be:

1. Not less than five (5) times the average gross harvest on their landholding during the last five (5) preceding calendar years After Disturbance Compensation - Agreement If the parties fail to agree on the amount of disturbance compensation

Parties may file a petition fixing disturbance compensation to PARAB. either party may file a petition for fixing disturbance compensation with the appropriate Provincial Agrarian Adjudicator (PARAD). petitioner must show proof that earnest efforts were exerted by the parties to fix the amount of disturbance compensation, which efforts proved unsuccessful,.

Limtation of exercising the option:

The tenant must exercise his option within one (1) year

From when?

 1. From the time the landowner manifests his choice of the area for retention 2. From the time the MARO has chosen the area to be retained by the landowner 3. From the time an order is issued granting the retention.

EFFECTS when tenant chooses to remain:

1. Shall be considered a leaseholder and shall lose his right to be an Agrarian Reform Beneficiary (ARB) under CARP. 2. Shall lose his right to be an Agrarian Reform Beneficiary (ARB) under CARP

 Preemption and redemption - shall apply the lessee.

Responsibilities of the Municipal Agrarian Reform Officer(MARO)

Determine ownership

Conduct verification and investigation

Notify farmers re: application

Preside over negotiation

Identify the tenants

Identify necessary land transfer

Prepare sketch plan Prepare retention folder

Identify LO who waive right to choose and right of retention

notification

Responsibilities of the PARO - Provincial Agrarian Reform Officer

 1. Review and evaluate the report and recommendations submitted by the MARO. 2. Forward the same, together with his findings and recommendations, a) to the Regional Director for appropriate action. or b) return the same to the MARO for appropriate action. 3. Upon the receipt of the Order of Approval from the Regional Director, the PARO shall segregate the appropriate retained area in coordination with the DENR. 4. Conduct the final survey of the area and draft a Certificate of Retention 5 . Request the Register of Deeds to prepare two (2) separate titles: (1) Landowner's title for the landholding (2) Landowner's title for the retained area

Responsibilities of the Regional Director

 1. Review and evaluate the documents submitted by the PARO. Issue an Order for Approval or Denial 2. Forward the Order of Approval or Denial, as the case may be to the PARO for distribution to the concerned parties. 3. Forward copies of all orders of approvals or denials to the BLAD(Bureau of Land Acquisition and Distribution. 4. Issue a Certificate of Retention.

Decision of the Regional Director

The decision of the Regional Director approving or disapproving the application for retention shall become final after fifteen (15) days from receipt of the decision, unless duly appealed to the DAR Secretary pursuant to the Rules of Procedure for Agrarian Law Implementation (ALI) cases.

SAMPLE DOCUMENTS

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