From CLOA to Regular Land Title: A Comprehensive Philippine Guide (2025 Edition) —for information only; not a substitute for personalised legal advice
1. What exactly is a CLOA?
| Item | Description |
|---|---|
| Full name | Certificate of Land Ownership Award |
| Legal source | §24, Republic Act (RA) 6657 (Comprehensive Agrarian Reform Law, 1988) as amended by RA 9700 (2009) |
| Purpose | Evidence that the State has transferred ownership of an agricultural landholding to an agrarian-reform beneficiary (ARB) subject to conditions |
| Key conditions | • 10-year prohibition on sale or transfer (counted from registration date) • Land must be cultivated by the ARB or the ARB’s immediate family • Land Bank of the Philippines (LBP) amortisation for 30 years at 6 % p.a. • Annotations: “Section 27/Section 6 restrictions,” “Payment mortgage to LBP,” etc. |
Unlike Torrens titles, a CLOA is proof of conditional ownership; it is registered at the Registry of Deeds (ROD) but carries statutory liens that limit full dominion.
2. Why convert to a regular (Torrens) title?
| Benefit | What Changes After Conversion? |
|---|---|
| Marketability | Full alienability; banks accept it as collateral without DAR clearance. |
| Ease of subdivision/consolidation | Free use of Subdivision Plan Subdivision (SPS) procedure instead of DAR-led parcelisation. |
| Succession and estate planning | Less risk of future heirs’ disputes because a Torrens title is indefeasible once one (1) year lapses from issuance. |
| Participation in non-agri projects | Easier to reclassify or lease the land for residential/commercial use after Sec. 65 land-use conversion clearance. |
3. When is conversion legally allowed?
Completion of the 10-year retention period §27 RA 6657 forbids any transfer within ten (10) years, except by hereditary succession or DAR-approved sale to a qualified ARB.
Full payment of LBP amortisation – LBP issues a Certificate of Full Payment (CFP). – The mortgage annotation on the back of the CLOA must be released/cancelled.
DAR clearance (emancipation patent substitute) – The Provincial Agrarian Reform Office (PARO) or DAR Adjudication Board (DARAB) issues an Order of Release/Lifting of Restrictions after verifying compliance with the agrarian obligations. – In collective CLOAs, parcelisation must be completed (DAR AO 4-2021) before conversion.
Absence of standing farmer-beneficiary disputes – No pending protest, cancellation, or nullification case under DARAB Rules.
No notice of coverage or retention controversy – For lands still partially covered, conversion is premature.
4. Offices & statutes you will repeatedly encounter
| Office | Primary role | Core issuances to read |
|---|---|---|
| Department of Agrarian Reform (DAR) | Lifts agrarian restrictions; parcelises collective CLOAs | DAR AO 1-2002 (Transferability), AO 7-2011 (Land Use Conversion), AO 4-2021 (PARCELA) |
| Land Bank of the Philippines (LBP) | Collects amortisation; issues CFP & Deed of Release of Real Estate Mortgage (DRREM) | LBP MC No. MB-2013-030 |
| Registry of Deeds (LRA) | Cancels CLOA & issues e-Torrens title | LRA Circular No. 31-2019 (e-Title Roll-out) |
| Department of Environment & Natural Resources – Land Management Bureau (DENR-LMB) | Approves subdivision/consolidation surveys for alienable & disposable lands | DENR AO 2010-13 |
5. Core documentary requirements
- Original Owner’s Duplicate CLOA (with all pages intact)
- LBP Certificate of Full Payment and DRREM
- DAR Order lifting Sec. 27/§6 restrictions (or Certification of Non-Retention)
- Approved Plan (if subdividing/consolidating) – LMB or Bureau of Lands form
- Latest Tax Declaration and Tax Clearance (LGU)
- BIR CAR (if there will be a taxable conveyance; many conversions are tax-exempt—see §66, RA 6657)
- Affidavit of Aggregate Landholding (to show you stay within 5-hectare retention limit)
- Proof of identities & SPA for representatives
- Original DAR clearance for voluntary transfer, if the CLOA was previously transferred after the 10-year ban but before full payment
6. Step-by-step conversion flow
| Stage | What to do | Typical timeline* |
|---|---|---|
| A. Pre-screening | Visit PARO; secure checklist & confirm if parcel is error-free in the Agrarian Land Information System (ALIS). | 1 day |
| B. Pay off amortisation | Settle any balance with LBP. | Variable |
| C. DAR petition | File Petition to Lift/Remove Restrictions (Form LLR-2020) with attachments. DAR posts a 15-day notice on barangay board. | 1–3 months |
| D. DAR Order | If unopposed, PARO issues an Order & Memorandum of Release; records sent to ROD. | +30 days |
| E. ROD-LRA | Submit owner’s duplicate, DAR & LBP papers, BIR CAR. ROD: • annotate cancellation • issue new e-Title. | 2–6 weeks |
| F. Claim e-Title | Pick up in person; verify via LRA’s e-Title QR code. | same day |
*Timelines are averages from field practice in 2024-2025; delays from technical description errors, name mismatches, or Archivo scanning backlogs are common.
7. Taxes, fees, and exemptions
| Payee | Basis | Rate / typical cost |
|---|---|---|
| LBP | Amortisation balance | varies |
| Registry of Deeds | §108 PD 1529 fees (cancellation & issuance) | ₱1,500 – ₱3,000 per parcel |
| DENR-LMB / CENRO | Plan approval | ~₱50 per corner + ₱300 filing |
| BIR | Documentary Stamp Tax (DST) | ₱15/₱20 per ₱1,000 of FMV; but §66 RA 6657 & BIR RMC 37-1994 exempt most CLOA conversions |
| LGU | Transfer tax | Often exempt under the same provisions—confirm with assessor |
8. Collective CLOAs (CCLOAs): special rules
- Parcelisation first, conversion second. DAR’s PARCELA Project (AO 4-2021) subdivides CCLOAs into individual titles.
- ARB consent: All beneficiaries must sign the petition to lift restrictions; dissenters trigger DARAB adjudication.
- Re-issuance: Individual CLOAs replace the CCLOA; each beneficiary then repeats the steps above.
9. Landmark jurisprudence you should cite in pleadings
| Case | G.R. No. | Core doctrine |
|---|---|---|
| Heirs of Malate v. Gadi | 173483 (Aug 22 2012) | CLOA encumbrances are binding even on subsequent transferees. |
| Spouses Chavez v. Spouses Caballero | 211935 (Oct 14 2015) | A void transfer within the 10-year period does not ripen into ownership, even after 10 years. |
| Luyong v. Tabasa | 203267 (Feb 9 2016) | DAR, not LRA, has primary jurisdiction over cancellation of CLOAs. |
| Rural Bank of Davao City v. Court of Appeals | 52765 (Mar 29 2017) | Mortgage over a CLOA without DAR clearance is null and void ab initio. |
10. Common pitfalls & how to avoid them
- Wrong technical descriptions. Prior-year surveys used PRS-92; e-Title requires PRS-92/PRS-92+; resurvey if codes mismatch.
- Name inconsistencies. “Juan Dela Cruz” vs “Juan De la Cruz”—execute one-and-the-same affidavit early.
- Unpaid real-property taxes. Though RA 6657 exempts ARBs from RPT on the first ₱100,000 assessed value, many treasurers still bill penalties; secure LGU agrarian tax-exemption certificate.
- Pending protest or cancellation cases. Screening at PARO prevents wasted filing fees.
- Selling before title release. A deed of sale executed while the land is still under CLOA restrictions is void; wait for the e-Title before closing any deal.
11. Policy updates as of July 10 2025
- House Bill 10277 / Senate Bill 2453 (“Agrarian Reform Completion Act”) – pending bicameral conference; proposes to automatically lift Section 27 restrictions after 30 years from CLOA issuance without need of a DAR petition.
- RA 11573 (2021) – streamlined agricultural-free-patent titling; although patents differ from CLOAs, the law’s e-patent IT backbone now underpins LRA’s CLOA parcelisation module.
- e-Serbisyo Portal v2.0 – pilot provinces (Nueva Ecija, Capiz, Bukidnon) allow online scheduling and status tracking for CLOA conversion dossiers.
12. Frequently asked questions
| Q | A |
|---|---|
| Can I mortgage a CLOA that is still within the 10-year lock-in? | Only to Land Bank and only for production loans; private-bank mortgages are void. |
| Do heirs need to re-file conversion after the original ARB dies? | No, provided succession was intestate and heirs remain tillers; file an Extrajudicial Settlement with Waiver + BIR CAR (estate tax), then proceed with DAR lifting. |
| Is the BIR still involved if the transaction is “conversion only”? | Yes, because ROD will not annotate a new title without a BIR Certificate Authorizing Registration—even if nil tax is due due to exemption. |
| Can the land be re-classified to residential right after conversion? | Only after DAR issues a separate Land-Use Conversion Order (§65 RA 6657); LGU zoning cannot override DAR. |
13. Practical checklist (print-friendly)
- ☐ Verify 10 years elapsed & amortisation fully paid
- ☐ Get CFP + DRREM from LBP
- ☐ Prepare survey plan (if needed)
- ☐ File Petition to Lift Restrictions at PARO
- ☐ Receive DAR Order → ROD
- ☐ Secure BIR CAR / LGU clearances
- ☐ Pay ROD fees → claim e-Title
- ☐ Safe-keep cancelled CLOA (evidence of chain of title)
14. Conclusion
Converting a CLOA into a regular Torrens title is administrative, not judicial; yet it demands rigorous compliance with agrarian-reform policy. The critical path is simple—wait, pay, clear, register—but each step has documentary traps that can delay or even void the process. Start at your DAR Provincial Office, clear your LBP amortisation, and work toward the ROD only after DAR issues its lifting order. With patience and a complete file, a former CLOA can mature into an indefeasible title—unlocking the land’s full economic and legal potential.
Prepared July 10 2025. For personalised advice, consult a licensed Philippine lawyer or agrarian-reform practitioner.