DAR CLEARANCE REQUIREMENTS FOR SMALL AGRICULTURAL LANDS (Philippine Legal Context – 2025)
1. Rationale & Legal Foundations
| Source | Key Provisions |
|---|---|
| 1987 Constitution Art. XIII, Secs. 4–6 | Mandates equitable land distribution and limits land‑owner retention. |
| Republic Act 6657 (Comprehensive Agrarian Reform Law, “CARL”, 1988) as amended by RA 9700 (2009) | • Sec. 6: 5‑hectare retention ceiling (plus up to 3 ha each for max 3 qualified children). • Sec. 70: Registers of Deeds (RODs) may not register transfers of agricultural lands without DAR clearance/exemption. |
| Executive Order 129‑A (1987) | Vests DAR with exclusive authority over agrarian reform matters, incl. transfer clearances. |
| DAR Administrative Orders (AOs) - AO No. 1‑1989 (Rules on Land Transactions) - AO No. 6‑1994 & AO No. 8‑1995 (streamlined forms, posting) - AO No. 1‑2002 (current consolidated rules) - AO No. 1‑2019 (automation & e‑registration) |
Provide the step‑by‑step documentary and procedural rules for securing a DAR Transfer Clearance (TC) or Certificate of No Coverage (CNC). |
2. What Is a DAR Transfer Clearance?
A DAR Transfer Clearance (TC) is a written certification that (a) the agricultural land to be conveyed is either outside CARP acquisition or within the landowner’s retention limit, and (b) the transfer will not defeat the rights of agrarian‑reform beneficiaries (ARBs) or bona‑fide tenants. Without it, the Register of Deeds must refuse registration.
3. When Is a TC Required?
| Transaction involving an agricultural parcel (regardless of size) | TC Needed? |
|---|---|
| Sale, barter, donation, exchange, dacion en pago, assignment, partition, consolidation, foreclosure/extra‑judicial sale, long‑term lease/mortgage (≥5 yrs) | Yes |
| Transfer by hereditary succession (intestate/testate) | Usually No, but a DAR Certification of Retention & Tenancy Status still required for registration. |
| Government expropriation or CARP compulsory acquisition | No (land goes to DAR/LBP). |
| Reclassified/residential/commercial/industrial land with duly approved DAR Conversion Order or CNC | No TC; present the Conversion Order or CNC instead. |
4. “Small Agricultural Landholding” Defined
For TC purposes, small means ≤5 hectares total aggregate ownership of the seller nationwide after the transfer and no tenancy displacement. The 5‑ha ceiling already includes all agricultural lands owned anywhere in the Philippines.
5. Substantive Conditions for Approval
- Retention Compliance – Seller keeps ≤5 ha after sale (unless previously waived).
- Land Not Under CARP Notice of Coverage (NOC), or if covered, the sale is to the actual tiller/qualified beneficiary and duly approved by DAR.
- Buyer Qualifications – Preferably Filipino, tiller, or qualified beneficiary; foreigners may buy only via succession or “capitalization of Philippine‑listed agribusiness” exceptions.
- Tenurial Rights Protected – Existing tenants/farmworkers must consent, or tenancy relations preserved.
- Agricultural Use Maintained – Buyer commits not to convert the land without a separate Conversion Order.
6. Documentary Requirements (Small Land, per AO 1‑2002)
| # | Document | Notes |
|---|---|---|
| 1 | Notarized Deed of Conveyance (sale, donation, etc.) | Must recite total landholdings of parties. |
| 2 | Certified true copy (TCT/OCT) & Owner’s duplicate | Issued ≤1 month before filing. |
| 3 | Latest Tax Declaration & Tax Clearance | From City/Municipal Assessor & Treasurer. |
| 4 | Lot Plan / Sketch Map with vicinity, metes‑and‑bounds | Approved by a licensed Geodetic Engineer or DENR‑LMB. |
| 5 | Affidavit of Aggregate Landholdings of seller & buyer | Shows compliance with 5‑ha ceiling. |
| 6 | BIR Certificate Authorizing Registration (CAR) | Submitted after provisional DAR approval, before ROD registration. |
| 7 | MARO Certification on Tenancy Status | Declares “tenant‑free” or lists tenants with consent. |
| 8 | Proof of Posting & Barangay Certification | 15‑day posting at barangay & municipal bulletin boards. |
| 9 | Valid IDs, SPA (if representative), processing fee OR | ₱ 2,000 (base) + ₱ 50/title page + ₱ 50/annex page (2025 schedule). |
7. Step‑by‑Step Procedure
| Stage | Timeline* | Responsible Office | Key Actions |
|---|---|---|---|
| 1. Filing & Assessment | Day 0 | Municipal Agrarian Reform Office (MARO) | Intake, docketing, fee payment, check completeness. |
| 2. Field Verification | ≤10 days | MARO | Ocular inspection, GPS plotting, tenant interviews. |
| 3. Posting & Publication | Simultaneous (15 days) | MARO / Barangay | Notices on bulletin boards; anyone may oppose in writing. |
| 4. PARO Evaluation | ≤15 days after posting | Provincial Agrarian Reform Office (PARO) | Legal & technical review; prepares draft clearance. |
| 5. Approval | ≤5 days | Signatory: • PARO – if ≤5 ha • Regional Director – >5 ha up to 24 ha • DAR Secretary – special/contested cases |
Signs Transfer Clearance; denial must be in writing with grounds. |
| 6. Release & Registration | Applicant has 180 days to present TC to ROD | Applicant / ROD | Pay BIR taxes, secure CAR, register deed & annotate title. |
*Under AO 1‑2002; actual processing often 30‑45 working days when documents complete.
8. Grounds for Denial
- Aggregate landholdings of seller exceed retention ceiling post‑transfer.
- Land is under a published NOC or already offered to DAR/LBP.
- Unresolved tenancy or agrarian dispute (e.g., ejectment case).
- Sale contravenes prohibitions (e.g., alien to foreign buyer, speculative buying).
- False/forged documents or material misrepresentation.
Remedy: File a motion for reconsideration with the same signatory within 15 days, or appeal to the DAR Adjudication Board (DARAB) and ultimately to the Office of the President or Court of Appeals under Rule 43.
9. Effects & Sanctions
| Act | Legal Effect |
|---|---|
| Registering deed without TC | • ROD liable for administrative/criminal sanctions (Sec. 103, RA 6657). • Transfer is void vis‑à‑vis the State; land still subject to CARP acquisition. |
| Filing falsified docs / misrepresentation | Criminal liability under Art. 171, RPC; perpetual disqualification from land transfers. |
| Circumventing retention (e.g., dummies, multiple small deeds) | DAR may nullify titles, reconvey land to DAR for redistribution. |
10. Special Scenarios
- Transfer to Tenants/ARBs – Allowed even if land under NOC, provided full payment terms with Land Bank and DAR monitoring.
- CLOA‑Covered Lands (Award Titles) – Within 10‑year prohibitory period, may not be sold except to the government or via DAR‑supervised ARB‑to‑ARB swap. After 10 years, TC still needed.
- Homestead or Free Patent Lands – 5‑year prohibition under CA 141 is in addition to DAR TC requirement.
- Co‑ownership & Partition – Each resulting lot must be evaluated; TC issued per transferee.
- Court‑Ordered Sale (e.g., execution, foreclosure) – Sheriff must secure TC before sale is confirmed; ROD still cannot register without it.
- Land Use Conversion – Conversion Order waives TC, but registration requires annotation of the Order and local zoning certification.
11. Fees, Taxes & Incidental Costs (2025 schedule)
| Item | Typical Cost (₱) | Payee |
|---|---|---|
| DAR Filing & Processing | 2,000 (flat) | DAR Cashier |
| Inspection Fee | 200/ha (min 1 ha) | DAR |
| Documentary Stamp Tax | 15/doc | BIR |
| Transfer Tax | 0.5–0.75 % of zonal value | LGU Treasurer |
| Capital Gains / Donor’s Tax | 6 % / 2–6 % | BIR |
| Registration Fee | 0.25 % of value | ROD/LRA |
(Local surcharges vary by province/city.)
12. Practical Tips
- Begin with a Title Trace. Secure an LRA‑certified title history to spot prior annotations (e.g., NOC, mortgage).
- Aggregate Land Audit. Seller must list all agricultural holdings nationwide; omissions are a common basis for denial.
- Settle Tenants Early. Written waivers or lease guarantees prevent later opposition during the posting period.
- Mind the 180‑day Window. A TC lapses if deed isn’t registered within six months; you must re‑apply and pay fees again.
- Digital Portal (e‑DARRCMS). Since 2023, many provinces accept online filing and e‑payment; monitor your queue status via the portal.
- Keep Copies. ROD annotates the TC on the new title; retain at least two originals for future transactions.
13. Conclusion
Obtaining a DAR Transfer Clearance is indispensable whenever a small agricultural parcel changes hands in the Philippines. Though the acreage may be modest, the clearance assures the State that:
- Retention limits are observed;
- Farmer‑beneficiaries and tenants remain protected; and
- The land continues to serve its agricultural purpose unless duly converted.
By mastering the documentary checklist, timelines, and legal caveats outlined above, landowners and buyers can navigate the process smoothly, avoid costly nullifications, and uphold the agrarian‑reform objectives enshrined in Philippine law.
This article is for general information only and does not constitute legal advice. For specific cases, consult the Department of Agrarian Reform or a qualified Philippine agrarian‑law practitioner.