In the Philippines, dealings involving agricultural land are not as straightforward as typical residential or commercial real estate transactions. Because of the state’s policy on agrarian reform, the Department of Agrarian Reform (DAR) exercises significant oversight. The most critical document in these transactions is the DAR Clearance.
Failure to secure this clearance can render a sale void or prevent the Register of Deeds from issuing a new Transfer Certificate of Title (TCT).
What is a DAR Clearance?
A DAR Clearance is an official certification issued by the Department of Agrarian Reform verifying that a transaction involving agricultural land does not violate the provisions of the Comprehensive Agrarian Reform Law (CARL) or Republic Act No. 6657.
It serves as proof that:
- The seller/landowner has not exceeded the five-hectare retention limit.
- The buyer/transferee will not exceed the five-hectare aggregate ownership limit after the transaction.
- The land is not subject to a pending case or coverage under the agrarian reform program.
What Does It Look Like?
While the exact layout may vary slightly depending on the regional office, a standard DAR Clearance generally contains the following elements:
- Official Letterhead: Features the DAR logo and the specific Provincial or Regional Agrarian Reform Office (PARO/RORO) that issued it.
- Subject Matter: Clearly states "Certification" or "Clearance for Land Transfer."
- Property Details: Includes the Lot Number, Survey Number, TCT/OCT Number, and the area/size of the land in square meters or hectares.
- Parties Involved: Names of the Transferor (Seller/Donor) and the Transferee (Buyer/Donee).
- The "Findings" Section: A brief statement declaring that the land is not covered by the CARP or that the retention limits are respected.
- Authorized Signature: Signed by the Provincial Agrarian Reform Program Officer (PARPO) or a designated Regional Director.
- Dry Seal: An embossed seal of the Department to ensure authenticity.
When Do You Need It?
Under DAR Administrative Order No. 04, Series of 2021, a clearance is required for the following "vountary" transactions involving agricultural lands:
- Sale or Exchange: When a landowner sells agricultural property to another individual or entity.
- Donation: When the land is being gifted.
- Deed of Partition: When heirs are dividing agricultural land inherited from a decedent.
- Foreclosure: When a bank or financial institution consolidates ownership of a mortgaged agricultural property.
- Land Conversion: Sometimes required as a preliminary step to show the current status of the land before applying to change its use from agricultural to residential/commercial.
Note: Even if the land is currently "vacant" or not being farmed, as long as its title or tax declaration classifies it as Agricultural, the Register of Deeds will require a DAR Clearance before processing the transfer.
Requirements for Application
To obtain the clearance, the applicant typically needs to submit the following to the DAR Municipal or Provincial Office:
- Notarized Application Form: Available at the DAR office.
- Deed of Conveyance: (e.g., Deed of Absolute Sale, Deed of Donation).
- Certified True Copy of the Title: Issued by the Register of Deeds.
- Tax Declaration: Current copy from the Assessor’s Office.
- Affidavits of Aggregate Landholding: Both the buyer and seller must swear under oath that their total agricultural landholdings in the Philippines do not exceed five (5) hectares.
- Barangay Certification: Issued by the Warden/Barangay Captain stating that the applicant is a resident and/or the status of the land (whether there are tenants/farmers).
Common Pitfalls to Avoid
- The "Five-Hectare Rule": If you already own 4 hectares of agricultural land and buy 2 more, the DAR will deny the clearance because you have exceeded the 5-hectare limit.
- Tenant Rights: If there are existing tenants or farmworkers on the land, they have the "Right of Pre-emption" or "Right of Redemption." If they were not properly notified of the sale, the DAR Clearance may be withheld or contested.
- Expired Clearances: These documents often have a validity period. If the transfer is not registered with the Register of Deeds within that window, you may need to apply for a revalidation.
Summary Table
| Feature | Details |
|---|---|
| Issuing Authority | Department of Agrarian Reform (DAR) |
| Primary Law | Republic Act No. 6657 (CARL) |
| Retention Limit | 5 Hectares for individuals |
| Mandatory for | Registration of Title (TCT) for agricultural lands |
Would you like me to draft a checklist of the specific affidavits required for a DAR Clearance application?