Do You Need DAR Clearance for the Sale of a 100-Square-Meter Agricultural Lot? (Philippines)
Short answer
Usually yes—if the land is still classified as agricultural and not validly reclassified or converted, the Registry of Deeds (RD) and many notarial/registry actors will look for a Department of Agrarian Reform (DAR) clearance or certification before they will register a deed of sale, regardless of how small the area is (100 sqm included). The clearance requirement is about the nature and agrarian status of the land, not its size.
Why this matters
Philippine agrarian laws place strict limits on the sale, transfer, and change of use of agricultural lands. “DAR clearance” (or a DAR certification of exemption/non-coverage) is the gatekeeper document the RD uses to ensure that a sale:
- does not defeat agrarian reform (e.g., by exceeding landownership ceilings or cutting up land to evade coverage),
- respects the rights of agrarian reform beneficiaries (ARBs) and tenants, and
- does not involve land that has been illegally converted or that is non-convertible (e.g., irrigated lands).
Key legal ideas you need to know
1) Agricultural vs. non-agricultural classification
- Agricultural land is land that is not classified as forest, mineral, national park, or built-up/urban by law or ordinance. Titles often carry a classification (e.g., “agricultural”), but the controlling factors include official land use/zoning reclassification and DAR/DA determinations.
- If the land was validly reclassified by the LGU to non-agricultural before 15 June 1988, it is exempt from CARP; today the RD typically accepts a DAR Certification of Exemption/Non-Coverage in lieu of a clearance.
- If reclassified after 15 June 1988, a DAR Conversion Order (permit) is usually required to lawfully change its use. Sale as agricultural is generally allowed (subject to agrarian rules), but sale for non-agricultural use without a conversion order is risky.
Bottom line: A 100-sqm area does not, by itself, make the land exempt. The decisive question is whether the land is legally agricultural at the time of sale.
2) Ownership ceilings and anti-circumvention
- As a rule, no person may own (or be awarded) more than five (5) hectares of agricultural land after agrarian reform took effect.
- DAR clearances screen buyers and sellers to prevent fragmenting land into tiny parcels (like 100 sqm) to evade this limit or undermine pending coverage.
3) Special rules for CARP-awarded land (EP/CLOA)
Land acquired by ARBs under Emancipation Patents (EP) or Certificates of Land Ownership Award (CLOA) is restricted:
- No sale/transfer for 10 years from award, except by hereditary succession or back to the Government/Land Bank, and even after the 10-year period, transfers generally must be to other qualified beneficiaries and/or with DAR approval.
- Unpaid amortizations or annotations (e.g., 30-year conditions, mortgage to Land Bank) are red flags.
If your 100-sqm lot is carved out of a CLOA/EP or is a portion of an ARB holding, do not proceed without specific DAR authority.
4) Tenancy/leasehold rights (agricultural lessee)
- Agricultural lessees/tenants enjoy rights including pre-emption (first option to buy) and redemption.
- A sale that ignores a lawful tenant’s rights can be voidable, and the RD may demand a MARO/PARO certification of non-tenancy or that tenant rights were respected.
5) Conversion-sensitive lands
- Irrigated and irrigable lands, lands with prime agricultural value, or those devoted to food staple production are generally non-convertible (or highly restricted). A sale is not per se barred, but using the land for non-agricultural purposes without a DAR Conversion Order can lead to cancellation, fines, and criminal liability.
So, do you need DAR clearance for a 100-sqm sale?
Ask these questions in order:
Is the land still agricultural?
- If yes, DAR clearance/certification is typically required for RD registration.
- If no (validly reclassified pre-1988 or with a DAR Conversion Order), you’ll usually need the DAR Certificate of Exemption/Non-Coverage or to present the Conversion Order—not a standard “clearance to sell.”
Is any part CLOA/EP land or under coverage?
- If yes, assume strict restrictions; obtain DAR approval and check if a transfer is even legally permissible.
Is there a tenant/lessee?
- If yes, document waivers or tenant rights compliance (often with MARO certification).
Will the buyer exceed 5 hectares of agricultural holdings?
- If yes, DAR clearance will not be issued; a sale aiming to skirt this limit is void or unregistrable.
Practical rule: Unless you can prove the land is outside CARP or already converted, prepare to secure a DAR clearance/certification—even for a 100-sqm slice.
Typical documents the RD, DAR, or notary may require
From DAR/MARO/PARO
- DAR Clearance (sometimes styled “Clearance to Register,” “Clearance to Transfer,” or similar), or
- DAR Certification of Exemption/Non-Coverage (for lands reclassified pre-1988 or otherwise outside CARP), or
- DAR Conversion Order (if use already converted), and compliance letter if there are conditions.
- Certification of Non-Tenancy or proof of tenant waivers/notice.
From parties
- Owner’s Duplicate Title, latest Tax Declaration, Locator/Sketch Plan showing the 100-sqm portion, and, where applicable, an Approved Subdivision/Segregation Plan (LRA-compliant).
- Affidavit of Aggregate Landholdings (buyer and seller).
- Proof of compliance with retention limits (if relevant).
- If CLOA/EP: copies of award documents, amortization status, and DAR authority to transfer (if allowed).
For taxes/fees (handled with the BIR, LGU, RD)
- Capital Gains Tax/Creditable Withholding Tax (as applicable), Documentary Stamp Tax, Transfer Tax, Registration Fees, Electronic Certificate Authorizing Registration (eCAR) from BIR.
Note: Even very small cuts (e.g., 100 sqm) usually still need proper subdivision/segregation before the RD will open a new title or annotate a partial-interest transfer.
Standard process (seller or buyer-led)
Status check at MARO/PARO
- Confirm land classification/coverage, tenancy, CLOA/EP flags, and whether a DAR clearance or a DAR exemption/certification is appropriate.
Prepare survey/subdivision (if selling only a 100-sqm portion)
- Get a Geodetic Engineer to prepare an approved survey plan; align with LRA technical standards.
File with DAR
- Submit the application (clearance or exemption), plans, titles, tax decs, affidavits, and tenant documents.
Receive DAR action
- Clearance/Certification issued or denied (with reasons). Conditions may be imposed (e.g., maintain agricultural use).
Tax clearance and registration
- Process BIR eCAR, pay LGU and RD fees, then register the Deed of Sale with the RD using the DAR document issued.
Common scenarios for a 100-sqm agricultural lot
A. Inside a barangay “built-up” area but title says agricultural
- Zoning may be residential today, but unless there’s documented pre-1988 reclassification or a DAR Conversion Order, it’s treated as agricultural. Expect to be asked for DAR clearance/exemption documentation.
B. Mother title is a CLOA
- Stop and consult DAR. Direct sales are typically barred or strictly limited. Even “token” 100-sqm transfers can be void.
C. Land is irrigated
- Conversion is restricted. A sale for continued agricultural use may proceed with clearance, but not for residential/commercial use without conversion.
D. Buyer already owns near 5 hectares
- Clearance may be denied; the sale will be unregistrable.
Risks of skipping DAR clearance/certification
- Refusal by the RD to register the sale.
- Nullity or voidability of the transaction for violating agrarian rules.
- Administrative/criminal penalties for illegal conversion.
- Future title problems (cancellation proceedings, lis pendens, inability to mortgage or resell).
Practical tips
- Check classification first. Ask zoning (CPDO/Municipal Planning) and MARO/PARO for written confirmation of status.
- Do not rely only on the tax declaration; it is not conclusive on land classification.
- If only a 100-sqm carve-out, budget time for proper segregation and ensure the resulting lot meets LRA/HLURB/locational rules for utility access and minimums (some LGUs or subdivisions set minimum lot sizes and frontage requirements).
- Keep the chain clean. If prior transfers in the mother title lacked DAR documentation, expect curative steps.
- Respect tenants. Paper the pre-emption/redemption waiver properly, if applicable.
FAQs
Is there any size threshold that exempts me from DAR clearance? No. The requirement turns on classification and agrarian status, not the square meters involved.
If the land has been residential since the 1990s by local ordinance, do I still need DAR documents? Usually yes—to prove exemption/valid reclassification (e.g., a DAR Certification of Exemption or to present a DAR Conversion Order if conversion was the route). RDs generally want DAR’s say-so in writing.
Can I buy 100 sqm from a CLOA title for a house site? Generally no. CLOA/EP lands carry transfer restrictions; private sales to non-qualified persons are typically prohibited without DAR approval, if at all permissible.
If we ignore DAR and just notarize the deed, will the RD register it? In most jurisdictions, no. The RD commonly requires a DAR clearance/exemption for transfers of agricultural lands.
Clean-deal checklist (seller & buyer)
- Latest TCT/OCT and Tax Declaration
- Zoning/land use certification (LGU)
- MARO/PARO written confirmation of status (non-tenancy, non-coverage, or steps to secure clearance/exemption)
- If applicable: DAR Conversion Order or DAR Certification of Exemption/Non-Coverage
- Affidavit of Aggregate Landholdings (both parties)
- Approved survey/segregation plan for the 100-sqm lot
- BIR eCAR, DST, Transfer Tax, RD fees
- If there is/was a tenant: notices + waiver/compliance proof
Bottom line
For a 100-square-meter agricultural lot in the Philippines, expect to secure DAR clearance or a DAR certification (exemption/non-coverage)—unless you can conclusively show the land is no longer agricultural (e.g., valid pre-1988 reclassification with DAR confirmation, or a DAR Conversion Order). The size of the lot does not remove the agrarian safeguards.