This practical explainer covers how heirs can succeed to land awarded under the Comprehensive Agrarian Reform Program (CARP) via a Certificate of Land Ownership Award (CLOA). It summarizes rules under Philippine agrarian reform, land registration, and succession law. It is general information, not legal advice.

1) Key Concepts and Laws

CLOA (Certificate of Land Ownership Award). The proof of ownership issued to a qualified farmer-beneficiary (FB) under CARP. It is registered as a title with the Register of Deeds (ROD), usually annotated with agrarian restrictions and a lien in favor of the Land Bank of the Philippines (LBP) until full payment.
Legal basis. Primarily the Comprehensive Agrarian Reform Law (CARL) (Republic Act No. 6657) as amended (notably R.A. 9700), related DAR Administrative Orders (AOs), the Property Registration Decree (P.D. 1529), and the Civil Code/Family Code on succession.
The 10-year prohibition. As a rule, CLOA land cannot be sold, transferred, or conveyed for 10 years except by hereditary succession, or to the Government/LBP/another qualified beneficiary. After the 10-year period and after full payment, transfers become less restrictive but still need DAR clearance.
Heir-substitution vs. title transfer.
- Heir-substitution (administrative installation of an heir as the FB) allows continuity of possession/cultivation when an FB dies—often processed at DAR field offices.
- Title transfer by succession changes the name(s) on the CLOA title at the ROD after settlement of the estate and DAR clearance.

2) Who Inherits a CLOA?

Succession follows the Civil Code:

With a valid will (testate): Subject to legitimes of compulsory heirs (spouse, legitimate/illegitimate children, or parents if no descendants).
Without a will (intestate): Shares pass to compulsory heirs by law.
Special agrarian considerations:
- Even within the 10-year prohibition, hereditary succession is allowed.
- DAR prioritizes keeping the land with heirs who actually till the land; installation/recognition as successor-FB may consider actual cultivation and residence.
- If the FB died before the CLOA issuance or full installation, DAR may recognize qualified heirs as substitute beneficiaries to preserve the intent of CARP.

Tip: If there are minor heirs or heirs abroad, expect guardianship papers, special powers of attorney (SPA), or consular acknowledgments.

3) Preliminary Due Diligence

Before processing any transfer, assemble answers to these:

Identify the land and encumbrances
- Certified true copy of the CLOA title (TCT/OCT) from the ROD
- Latest tax declaration and tax map index card (Assessor)
- RPT (amelyar) status (Treasurer)
- DAR annotations (e.g., Sec. 27 prohibition, LBP lien, collective/individual)
- LBP status: Certificate of Full Payment or statement of balance
Confirm heirship and civil status
- Death certificate of the FB; marriage certificate(s); birth certificates of heirs
- If there is a will: probate documents; if none: proof for intestate settlement
- IDs, TINs of heirs (BIR requirement)
Check CLOA type
- Individual CLOA vs Collective CLOA (co-ownership). Collective titles may require parcelization (subdivision) or clear internal allocation before transfer to specific heirs.

4) Overview of the Process (From Death to Title in Heirs’ Names)

A. Settle the Estate (BIR + Settlement Instrument)

Estate inventory and valuation. List properties, debts, and values as of date of death.
Choose a settlement track:
- Extrajudicial Settlement (EJS) if: no will, no debts (or debts paid), all heirs are of legal age (or minors represented by a court-appointed guardian), and heirs agree.
  - Execute EJS of Estate (or Deed of Adjudication), notarize, and publish once a week for three consecutive weeks in a newspaper (statutory requirement for EJS).
- Judicial (Probate/Intestate) if: there’s a will, disputes, minors without a guardian, or complex issues.
Estate tax return & payment.
- File the estate tax return with BIR within one (1) year from death (extensions possible for meritorious cases).
- Secure BIR Electronic Certificate Authorizing Registration (eCAR) for the subject land in favor of the heirs.

Costs here typically include estate tax (net estate basis), surcharges/interest if late, and documentary stamp tax where applicable (estate transfers are not subject to capital gains tax).

B. Obtain DAR Clearances/Endorsements

DAR verification and clearance.
- File with the Municipal/City Agrarian Reform Office (MARO) for:
  - Recognition/installation of successor-FB (administrative); and/or
  - DAR Clearance to transfer by hereditary succession (required by most RODs even for succession; preserves agrarian annotations).
- Submit: CLOA copy, eCAR, EJS/Probate order, IDs, civil registry docs, LBP payment status, tax clearances, and any occupancy/cultivation certifications.
- If the CLOA is collective, DAR may require:
  - Proof of allocation (lot assignment), or
  - Parcelization approval (if subdividing), including survey returns and subdivision plan.

C. Register the Transfer with the Register of Deeds (ROD)

ROD proceedings.
- Present the owner’s duplicate CLOA, DAR clearance, eCAR, EJS/Probate order, tax clearances, and IDs/TINs.
- Pay registration fees and IT fees; ROD cancels the old title and issues a new CLOA-TCT in the heirs’ names (pro-indiviso unless parcelized).
- Annotations remain: agrarian restrictions and LBP lien (if not yet fully paid).
Post-registration updates.
- Update Assessor (new tax declaration) and Treasurer (RPT billing).
- Notify LBP (if amortizations continue) and DAR (to update their FB roster).

5) Special Situations and How to Handle Them

Unpaid LBP amortizations. Heirs usually step into the FB’s shoes; expect to assume the balance. Some RODs will not effect transfer without an LBP status letter or updated arrangement.
Loss of owner’s duplicate CLOA. File Affidavit of Loss; petition ROD for issuance of a new owner’s duplicate; DAR usually re-verifies before giving clearance.
Heir lives in the city; another heir tills the land. DAR tends to install the actual tiller as successor-FB, but title can still reflect co-heirship unless heirs agree to assign shares.
Disputes among heirs. Resort to DARAB (for agrarian disputes like who is the rightful FB/possessor) or regular courts (for pure succession/partition issues). Jurisdiction depends on the nature of the controversy.
Illegal waiver or sale within 10 years. “Waiver,” “aryendo” (long leases), or private deeds in favor of non-qualified persons are void/voidable and risk cancellation of the CLOA. Always route through DAR and observe restrictions.
Collective CLOA without internal lot allocation. You may need technical surveys and parcelization approval before putting specific heirs’ names on specific parcels.
Minor heirs. Settlements must be court-approved; guardians must be appointed; proceeds or shares are held/managed under court supervision.
FB died before CLOA issuance. DAR may substitute qualified heirs and proceed with issuance in their names, subject to verification of actual tillage and qualifications.

6) Document Checklist (Typical)

Identity & Civil Status

Death certificate of FB
Marriage certificate(s) of FB
Birth certificates of heirs; CENOMAR/Advisory on Marriages if requested
Government IDs and TINs of heirs; SPAs for those abroad (consularized/apostilled)

Property & Tax

Certified true copy of CLOA title (TCT/OCT) + owner’s duplicate
Latest tax declaration; tax clearance/RPT receipts
LBP Certificate of Full Payment or latest statement of account
Sketch/vicinity plan (if asked), survey plans for parcelization

Settlement

Extrajudicial Settlement (with publication proof) or Probate/Intestate court order
BIR estate tax return + eCAR for the property
Notarial acknowledgments and documentary stamps where applicable

DAR/ROD

DAR Clearance for hereditary succession; MARO certifications
ROD transfer fees receipts; IT/entry fees
Affidavit of Loss (if duplicate title missing)

7) Practical Timeline (Indicative Only)

Gather docs & valuation: 2–6 weeks (depends on certificates and LBP status).
EJS + publication: 3–5 weeks (publication is 3 consecutive weeks).
BIR filing & eCAR issuance: varies widely; prepare for follow-ups.
DAR processing/clearance: varies by province and whether parcelization is needed.
ROD registration & new title release: 1–4 weeks after complete submission.

Bottlenecks often arise from missing TINs, unpaid RPT, unsettled amortizations, and collective CLOAs needing parcelization.

8) Fees and Taxes (At a Glance)

Estate tax on the net estate (subject to deductions/exemptions per law)
No capital gains tax on transfers by succession
Documentary stamp tax may apply to certain instruments
ROD fees (entry, registration, issuance)
Publication cost for EJS
Survey/parcelization costs (if needed)
RPT arrears/penalties, if any

9) Compliance Do’s and Don’ts

Do:

Keep the land cultivated; agrarian productivity is central to FB status.
Coordinate early with MARO/DAR; their clearance is often decisive.
Use notarized instruments and keep publication clippings intact.
Pay or assume LBP amortizations promptly; secure official receipts.

Don’t:

Sell or mortgage the CLOA to unqualified persons or within the 10-year bar.
Execute private waivers or long-term “aryendo” arrangements to bypass restrictions.
Ignore minor-heir protections and probate requirements when applicable.

10) Frequently Asked Questions

Q: Can we transfer the CLOA to heirs even if 10 years haven’t elapsed? A: Yes. Hereditary succession is expressly allowed despite the 10-year ban, but the transfer must still pass through DAR clearance and ROD registration, keeping agrarian restrictions.

Q: We can’t agree on shares. What now? A: File for judicial partition (regular courts) or seek DARAB intervention if the disagreement centers on agrarian possession/FB qualification.

Q: The FB wasn’t the actual tiller; a son/daughter tills the land. A: DAR may install the actual tiller-heir as successor-FB; title can later reflect the agreed or adjudged shares after estate settlement.

Q: Do we need to finish paying LBP before transfer to heirs? A: Not always; many RODs allow succession transfer with annotations preserved. But you’ll likely need an LBP status letter and the heirs will assume the remaining amortizations.

Q: Is a collective CLOA a problem for inheritance? A: Not a bar, but you may need clear allocation or parcelization so that ROD can issue titles reflecting each heir’s share or specific lot.

11) Sample Clause Snippets (For Guidance Only)

Extrajudicial Settlement (key lines):

“…the parties, being all of legal age and the sole heirs of the late [Name], do hereby extrajudicially settle his/her estate and adjudicate unto themselves, pro-indiviso, the property covered by TCT No. [CLOA-…], subject to all agrarian reform restrictions and the lien in favor of the Land Bank of the Philippines…”

Heirs’ Undertaking re Agrarian Restrictions:

“…the Heirs acknowledge that the property is CLOA-covered, subject to Section 27 restrictions, that transfers within the prohibited period shall only be through hereditary succession or to entities/persons allowed by law, and that they shall seek DAR clearance for any subsequent conveyance…”

(Have a lawyer/notary tailor these to your facts.)

12) Action Plan You Can Follow

Secure CLOA certified copy, LBP status, tax dec, RPT.
Gather civil registry documents of the FB and all heirs; obtain TINs.
Execute EJS (or commence probate); publish if EJS.
File estate tax with BIR; obtain eCAR.
Apply with DAR (MARO) for succession clearance (and successor-FB installation, if relevant).
File with ROD for title transfer to heirs; pay fees; claim new title.
Update Assessor/Treasurer, notify LBP and DAR of the change.

Final Notes

Keep a single, organized folder (physical or digital) with every receipt and certification; DAR and ROD processing is smoother when your set is complete.
If your case involves disputes, minors, collective titles, or unpaid amortizations, consult counsel or a practitioner with agrarian and estates experience to avoid null transactions or cancellation risks.

If you’d like, I can draft a tailored checklist based on your facts (location, CLOA type, number/ages of heirs, LBP status, and whether there’s a will).