Can CLOA-Awarded Land Be Used for a Barangay Public Project?

Yes—land covered by a Certificate of Land Ownership Award (CLOA) can be used for a barangay public project, but the barangay cannot simply occupy the property, pass a resolution, and begin construction. The land remains privately owned by the agrarian reform beneficiary, subject to agrarian reform restrictions. Before public funds are spent, the barangay must obtain a legally recognized right over the land, comply with Department of Agrarian Reform (DAR) requirements, establish a genuine public purpose, and complete the necessary survey, registration, budgeting, and permitting steps.

When Can CLOA Land Be Used for a Barangay Project?

The correct process depends on how the barangay intends to acquire or use the property.

Proposed arrangement	Generally possible?	Main legal requirement
Donation of the land to the government	Yes	Voluntary deed, proper barangay authority, DAR coordination, survey, and registration
Negotiated purchase by the government	Yes	Approved funding, valid contract, compensation, DAR coordination, and title transfer
Expropriation for genuine public use	Yes	Ordinance, prior definite offer, court case, due process, and just compensation
Verbal permission from the CLOA holder	No	Verbal consent does not transfer ownership or create a secure registrable right
Barangay resolution declaring the land a project site	No	A resolution does not transfer title or convert agricultural land
Informal lease, usufruct, or “free use” agreement	Risky	DAR approval and a properly authorized, registered agreement may be required
Construction while documents are still pending	Generally no	The barangay risks unlawful taking, COA disallowance, and agrarian penalties

The most important distinction is between permission to use land and legal authority to use land. A farmer may sincerely agree to let the barangay build a health station or road, but oral permission, meeting minutes, or an unsigned sketch will not protect the farmer, the barangay officials, or the public funds used for the project.

What Does a CLOA Mean?

A CLOA is not merely a certificate showing that a person is occupying farmland. Once registered with the Registry of Deeds, it is evidence of ownership under the Comprehensive Agrarian Reform Program.

However, ownership remains subject to conditions imposed by Republic Act No. 6657, the Comprehensive Agrarian Reform Law of 1988, as amended by Republic Act No. 9700.

Section 27 of RA 6657 restricts the sale, transfer, or conveyance of awarded land during the statutory holding period. It nevertheless expressly recognizes transfers through hereditary succession, to the government, to the Land Bank of the Philippines, or to qualified agrarian reform beneficiaries through the DAR. This means that a transfer to a government entity may be legally possible even when an ordinary private sale would be prohibited. (Lawphil)

That exception does not mean the barangay may skip DAR, land registration, budgeting, or conversion requirements. It only means that the agrarian reform transfer restriction is not an absolute prohibition against government acquisition.

The Barangay Must Legally Acquire the Site

A barangay has corporate power to acquire property

Under Section 22 of the Local Government Code, Republic Act No. 7160, every local government unit is a body corporate that may acquire real property, enter into contracts, sue, and be sued.

The punong barangay cannot normally sign a deed of sale, donation, lease, usufruct, or similar contract on behalf of the barangay without prior authorization from the sangguniang barangay. A copy of the contract must also be posted as required by the Local Government Code. (Supreme Court E-Library)

The authorizing measure should clearly state:

• The exact public project;
• The CLOA and lot numbers;
• The area to be acquired;
• The mode of acquisition;
• The person authorized to sign;
• The source of project and acquisition funds;
• Who will shoulder survey, taxes, registration, and transfer expenses; and
• Any conditions imposed by the donor or seller that the barangay may lawfully accept.

A barangay resolution does not transfer ownership

In Genuino v. Commission on Audit, the Supreme Court rejected the argument that minutes of a sangguniang barangay meeting had effectively turned private property over to the barangay. The Court emphasized that a meeting or resolution is not a legally recognized method of acquiring ownership. Until the government acquires the property through donation, sale, expropriation, or another lawful mode, it remains private property. (Lawphil)

This matters because public funds generally cannot be used to construct permanent improvements on private property when the primary benefit remains private. Barangay officials who proceed without clear ownership or use rights may face a Commission on Audit disallowance and possible personal liability.

Four Possible Ways to Secure the Land

1. Donation to the barangay or another LGU

A CLOA holder may voluntarily donate the required portion to the government, subject to agrarian and registration requirements.

A proper donation normally requires:

1. A written and notarized deed of donation;
2. Clear identification of the land and donated area;
3. Acceptance by the authorized government official;
4. Prior sanggunian authority;
5. An approved segregation or subdivision survey if only a portion is donated;
6. DAR review or written confirmation regarding the CLOA;
7. Resolution of Land Bank liens or title annotations;
8. BIR transfer documentation or proof of tax exemption; and
9. Registration with the Registry of Deeds.

The deed should identify the government entity that will own the property. It should not simply say “for barangay use” without naming the donee and establishing who will register, maintain, and control the site.

A donation must also be genuinely voluntary. Barangay officials should not pressure a farmer to donate land by threatening to withhold permits, assistance, irrigation access, certifications, or government benefits.

2. Negotiated sale

The barangay may purchase the land or the required portion if funds have been lawfully appropriated.

The transaction should include:

• A written offer based on a defensible appraisal;
• Confirmation that the CLOA holder has authority to sell to the government;
• An appropriation for the purchase price and transaction expenses;
• A deed of absolute sale;
• DAR, Land Bank, BIR, assessor, treasurer, and Registry of Deeds processing; and
• Payment for crops, trees, structures, and other affected improvements where appropriate.

The price should not be based only on the tax declaration. Tax declarations often contain values substantially below actual market value. An independent appraisal, comparable sales, the applicable schedule of market values, BIR zonal value, actual agricultural use, and the value of improvements may all be relevant.

For right-of-way and infrastructure projects, local governments may adopt applicable provisions of the Accelerated and Reformed Right-of-Way Act, RA No. 12289 of 2025, subject to the Local Government Code and implementing rules. That law recognizes negotiated sale, donation, expropriation, easements, usufruct, joint use, and similar agreements as possible acquisition arrangements. (Lawphil)

3. Expropriation

Expropriation is the compulsory acquisition of private property for public use upon payment of just compensation.

A barangay has delegated authority to expropriate property for a legitimate public project. The Supreme Court recognized this authority in Barangay Sindalan, San Fernando, Pampanga v. Court of Appeals, although it invalidated the particular taking because the supposed road primarily benefited a private subdivision rather than the general public. (Supreme Court E-Library)

Under Section 19 of the Local Government Code, the following are normally required:

1. The project must serve a genuine public use, purpose, or welfare;
2. The sangguniang barangay must enact an ordinance, not merely pass a resolution;
3. The barangay must first make a valid and definite offer to the registered owner;
4. The owner must reject or fail to accept the offer;
5. The barangay must file an expropriation case in the proper court;
6. The owner and other affected parties must receive due process;
7. The required initial deposit must be made; and
8. Full just compensation must ultimately be paid.

The Local Government Code generally allows an LGU to seek possession after filing the expropriation case and depositing at least 15% of the property’s fair market value based on the current tax declaration. Final compensation is determined by the court based on the property’s fair market value at the time of taking. (Lawphil)

A resolution alone is insufficient under the current Local Government Code. Supreme Court decisions applying Section 19 consistently require an ordinance authorizing the exercise of eminent domain. (Supreme Court E-Library)

4. Easement, usufruct, lease, or right-of-way agreement

Sometimes the barangay does not need full ownership. A drainage line, pathway, water pipe, or temporary access route may be covered by an easement or right-of-way agreement. A barangay facility may sometimes be placed under a registered usufruct, which gives the government a right to use the land without transferring full ownership.

This option still requires caution. Giving possession or control of awarded land to another entity without DAR approval may expose the CLOA holder to forfeiture proceedings. Current DAR rules treat unauthorized direct or indirect transfers of ownership or possession as a serious violation. (DAR Media)

A private memorandum of agreement should therefore not be used to disguise what is effectively a permanent transfer or conversion of the property.

Does the Land Need DAR Conversion Approval?

Land-use conversion means changing agricultural land to residential, institutional, commercial, industrial, or another non-agricultural use. A barangay hall, permanent health center, covered court, public market, material recovery facility, or evacuation center will normally involve a change from agricultural use.

Section 65 of RA 6657 gives the DAR authority to approve conversion of awarded land under specified conditions. These include the passage of the applicable period after the award, loss of agricultural feasibility or urbanization of the locality, notice to affected parties, and satisfaction of the beneficiary’s obligations where required. (Supreme Court E-Library)

Reclassification is not the same as conversion

A city or municipality may reclassify certain agricultural areas through a zoning ordinance under Section 20 of the Local Government Code. A barangay itself does not possess that reclassification power.

More importantly, Section 20 expressly provides that agricultural lands already distributed to agrarian reform beneficiaries are not automatically affected by local reclassification. Their conversion remains governed by Section 65 of RA 6657. A zoning certification or inclusion in the municipal comprehensive land use plan does not, by itself, authorize construction on CLOA land. (Supreme Court E-Library)

Special rule when the land is expropriated

The Supreme Court held in Province of Camarines Sur v. Court of Appeals that an LGU’s actual expropriation of agricultural land for a valid public purpose does not require a separate DAR conversion clearance. This doctrine was later reiterated in Land Bank of the Philippines v. Livioco. (Lawphil)

The exception should not be stretched beyond its facts. A proposed expropriation, barangay resolution, purchase negotiation, donation, or zoning change is not the same as a completed or legally commenced expropriation.

For a voluntary purchase, donation, usufruct, or lease involving CLOA land, the practical approach is to obtain a written DAR determination before construction. The DAR should confirm whether the proposed transaction requires:

• Conversion approval;
• Segregation or parcelization;
• Amendment or cancellation of the affected CLOA portion;
• Release or annotation of a Land Bank lien;
• Approval of a use agreement; or
• Another agrarian law implementation proceeding.

RA 9700’s special public-purpose acquisition provision expressly refers to provincial, city, and municipal governments and includes projects such as roads, school sites, local government facilities, public parks, and barangay plazas. Because barangays are not expressly listed in that particular provision, a barangay should not assume that every special exemption available to a city or municipality automatically applies to it. Coordination with the municipal or city government may provide a cleaner route for acquisition and project ownership. (Supreme Court E-Library)

Step-by-Step Process Before Construction

1. Verify the title and agrarian status

Obtain and examine:

• A certified true copy of the CLOA title from the Registry of Deeds;
• The owner’s duplicate title;
• All annotations, mortgages, liens, adverse claims, and notices;
• DAR records identifying the registered beneficiary;
• Land Bank records, including any mortgage release or condonation annotation;
• The current tax declaration and real property tax clearance;
• The approved survey plan and technical description; and
• Records of any pending DAR, DARAB, court, or boundary case.

Do not rely solely on a photocopy of the CLOA. The title may cover a collective award, contain restrictions, or have been superseded by a parcelization proceeding.

2. Determine whether the CLOA is individual or collective

If the property is under a collective CLOA, the person cultivating the proposed project site may not have sole authority to donate or sell it.

DAR must determine:

• Which beneficiaries own the affected portion;
• Whether the property has already been parcelized;
• Whether all necessary owners must sign;
• Whether the proposed subdivision will prejudice other beneficiaries;
• Whether farm access, irrigation, drainage, or productivity will be affected; and
• Whether a replacement access route or other mitigation is necessary.

3. Identify the smallest area reasonably needed

A public project should not take more agricultural land than necessary. Prepare a site plan showing:

• The project footprint;
• Access roads;
• Setbacks;
• Drainage;
• Utilities;
• Remaining agricultural area; and
• Effects on crops, irrigation, and farm access.

Using only part of the property usually requires an approved segregation survey prepared by a licensed geodetic engineer.

4. Secure government authorization and funding

The barangay should prepare the appropriate:

• Authorizing ordinance or resolution;
• Appropriation ordinance;
• Barangay development plan entry;
• Annual investment program entry;
• Project proposal and cost estimate;
• Certification of available funds;
• Procurement documents; and
• Written confirmation of consistency with the municipal or city comprehensive land use plan.

For expropriation, use an ordinance. For a voluntary contract, prior sanggunian authorization must clearly empower the punong barangay to sign.

5. Consult the DAR before signing the final instrument

Bring the title, project plan, proposed transaction, and survey sketch to the Municipal Agrarian Reform Program Office and Provincial Agrarian Reform Program Office.

Ask for a written determination covering:

• Whether the transfer to the government is permitted;
• Whether conversion is required;
• Whether the land must first be segregated;
• Whether the CLOA must be amended or partially cancelled;
• Whether Land Bank participation is necessary;
• Whether other beneficiaries or tenants must be notified; and
• Which DAR office has approving authority.

Verbal advice from a field officer may be helpful, but it should not replace the written clearance, certification, order, or legal opinion required for registration.

6. Execute and register the proper document

Depending on the chosen route, the document may be a:

• Deed of donation and acceptance;
• Deed of absolute sale;
• Deed of usufruct;
• Easement or right-of-way agreement;
• Lease agreement approved under agrarian rules; or
• Court judgment or order in an expropriation case.

The transaction is not complete merely because the document was notarized. BIR, local treasurer, assessor, Registry of Deeds, DAR, and Land Bank requirements may still have to be satisfied.

7. Obtain permits before construction

Depending on the project, permits may include:

• Locational or zoning clearance;
• DAR conversion order or written exemption determination;
• Environmental Compliance Certificate or Certificate of Non-Coverage;
• Building permit;
• Development permit;
• Excavation or road-opening permit;
• Sanitary permit;
• Fire safety clearance; and
• Water, drainage, or waste-management approvals.

Documents Commonly Required

Category	Typical documents
Ownership	Certified CLOA title, owner’s duplicate, tax declaration, tax clearance
Agrarian status	DAR certification, CLOA records, parcelization records, conversion order if applicable
Land Bank	Mortgage status, release, payment or condonation records
Survey	Approved subdivision or segregation plan, technical description, vicinity map
Owner’s identity	Government IDs, birth certificate, marriage certificate, spouse’s conformity where required
Collective CLOA	List of beneficiaries, DAR-approved allocation, required consents
Barangay authority	Ordinance or resolution, appropriation, authority for the punong barangay to sign
Project	Site plan, engineering plans, public-purpose justification, funding source
Transaction	Deed of sale, donation, usufruct, easement, or expropriation documents
Registration	BIR eCAR or exemption documents, transfer tax clearance, registration fees
Permits	Zoning, environmental, building, sanitation, fire, and engineering permits

When an owner, spouse, heir, or authorized representative is abroad, the deed or special power of attorney should ordinarily be signed before a competent foreign notary and apostilled if executed in an Apostille Convention country. Documents from a non-Apostille country generally require authentication through the appropriate Philippine diplomatic or consular post. The authority should specifically describe the CLOA, affected area, transaction, price or donation, and power to deal with DAR, BIR, and the Registry of Deeds.

Typical Time and Cost Considerations

Actual processing time depends heavily on whether the title is individual, collective, mortgaged, disputed, or only partly affected.

Stage	Practical working range
Initial title and DAR status review	Several weeks
Survey and segregation of a clean individual title	One to three months or longer
Voluntary sale or donation with complete documents	Several months
Collective CLOA parcelization or ownership correction	Six months to well over a year
Land-use conversion	Several months to more than a year
Contested expropriation	Often one to three years or longer

Possession in an expropriation case may be obtained earlier after compliance with the applicable filing and deposit requirements, but final valuation and title transfer may remain pending.

Common expenses include:

• Geodetic survey and plan approval;
• Independent appraisal;
• Notarial fees;
• DAR filing and inspection charges;
• BIR taxes or exemption processing;
• Local transfer tax;
• Registry of Deeds fees;
• Court filing, publication, commissioners, and appraisal costs;
• Compensation for land, crops, trees, structures, and disturbance; and
• Environmental and building permit fees.

The project budget should provide for land acquisition and registration—not only construction.

Common Mistakes That Cause Legal Problems

Building first and fixing the title later

This is the most dangerous shortcut. Once a permanent structure has been built, the farmer may lose productive land while still remaining the registered owner and taxpayer. Barangay officials may also face audit findings because the project was constructed on land the barangay did not own or lawfully control.

Treating a barangay certification as proof of ownership

Barangay certifications can confirm residence, possession, or local knowledge. They do not replace a CLOA, deed, DAR order, court judgment, or registered title.

Using a resolution instead of an ordinance for expropriation

Section 19 of the Local Government Code requires an ordinance. An expropriation complaint based only on a resolution may be dismissed.

Claiming a private benefit is a public purpose

A road serving the whole farming community may be a public project. A road designed mainly to give a private subdivision, business, or selected family a more convenient entrance may fail the public-purpose test, as illustrated by Barangay Sindalan. (Supreme Court E-Library)

Ignoring other CLOA beneficiaries

A person physically occupying one section of a collective CLOA may not be its exclusive owner. Construction without proper consent and DAR allocation can trigger disputes among beneficiaries.

Assuming zoning approval is DAR conversion

Local zoning and DAR conversion are separate legal processes. Reclassification after June 15, 1988 does not automatically authorize non-agricultural use of agricultural land, especially land already awarded to agrarian reform beneficiaries.

Paying only the person currently cultivating the site

The lawful recipient of compensation may be the registered CLOA holder, several collective beneficiaries, heirs, or parties whose interests are subject to a Land Bank lien. Crops and improvements may also belong to persons different from the registered owner.

Frequently Asked Questions

Can a CLOA holder donate land to the barangay within the 10-year restriction period?

Section 27 of RA 6657 recognizes transfer to the government as an exception to the ordinary restriction. The donation must still be voluntary, properly authorized, surveyed, reviewed by DAR, accepted by the correct government entity, and registered.

Is the farmer’s verbal consent enough for a barangay health center?

No. Verbal permission does not transfer ownership or create a stable, registrable right. A notarized and properly authorized deed, followed by DAR and registration processing, is normally necessary.

Can a barangay resolution convert CLOA land into institutional land?

No. A barangay resolution cannot convert agricultural land. Even city or municipal reclassification does not automatically convert CLOA-awarded land. DAR authority remains relevant under Section 65 of RA 6657.

Can a barangay expropriate CLOA land?

Yes, provided the taking is genuinely for public use and the barangay complies with the Local Government Code, including an ordinance, a prior valid and definite offer, an expropriation case, due process, and payment of just compensation.

Is DAR conversion always required for a barangay project?

Not always. Supreme Court doctrine recognizes that agricultural land actually expropriated by an LGU for public purpose does not require separate DAR conversion clearance. Voluntary sale, donation, lease, or usufruct arrangements should not assume the same exemption. Obtain a written DAR determination.

Can only a small portion of the CLOA property be used?

Yes, but the portion should be surveyed and legally segregated. DAR must determine how the affected area will be removed from or reflected in the CLOA and whether the remaining farm will still be viable.

What happens if the CLOA is collective?

The affected beneficiary cannot necessarily act alone. DAR must identify the owners and approve the parcelization, segregation, or transaction. Other beneficiaries may need to consent or participate.

Who receives payment in an expropriation?

Payment ordinarily belongs to the persons legally entitled to the affected land and improvements. This may include registered agrarian reform beneficiaries and owners of crops, trees, or structures, subject to Land Bank liens, inheritance issues, and competing claims.

Can construction begin after the deed is notarized?

Not automatically. The deed may still require DAR action, BIR processing, survey approval, registration, conversion, and building or environmental permits. Construction should begin only after the barangay’s legal right and required approvals are secure.

What if the CLOA holder is already deceased?

The heirs must first establish their authority through the appropriate settlement of estate and DAR process. The barangay should not accept a deed signed by only one heir unless that person has legal authority to represent all parties entitled to the property.

Key Takeaways

• CLOA-awarded land can be used for a barangay public project, but it remains private agrarian reform land until lawfully acquired or encumbered.
• A barangay resolution, oral permission, or meeting minutes do not transfer ownership.
• Donation, negotiated sale, expropriation, easement, or usufruct may be possible, depending on the project and DAR requirements.
• Expropriation requires an ordinance, a prior valid offer, genuine public use, court proceedings, and just compensation.
• Local reclassification does not automatically convert CLOA land to non-agricultural use.
• Partial acquisition requires an approved survey and proper segregation from the CLOA.
• Collective CLOAs, Land Bank liens, deceased beneficiaries, and pending DAR cases commonly delay projects.
• The barangay should obtain written DAR guidance, complete registration, and secure permits before spending public funds or starting construction.