How to Obtain DAR Clearance in the Philippines

(A practitioner-style guide for transactions involving private agricultural land)

I. What “DAR Clearance” Is—and Why It Matters

DAR Clearance is a written authorization issued by the Department of Agrarian Reform (DAR) confirming that a proposed transaction involving private agricultural land (e.g., sale, donation, exchange, mortgage, lease, or subdivision/partition) does not violate agrarian reform laws. Registries of Deeds, notaries, and LGU offices commonly require it before accepting or registering instruments that affect agricultural land.

At its core, DAR Clearance functions as a compliance screen against:

Compulsory acquisition/coverage under agrarian reform;
Prohibited transfers (e.g., transfers within restricted periods or to disqualified transferees);
Breaches of retention limits and landholding ceilings;
Transfers that would impair the rights of farmer-beneficiaries, tenants, or occupants;
Unapproved conversions or changes in land use.

Key point: Without DAR Clearance (or an appropriate DAR Certification/Exemption where applicable), the Register of Deeds may refuse registration, and the parties risk administrative and even criminal liability for unlawful conversion or prohibited transfers.

II. Legal Foundations (Plain-English Overview)

While detailed citations vary by issuance and amendment over the years, the clearance regime draws from the following pillars:

Comprehensive Agrarian Reform Program (CARP) and its extension/amendments.
- Coverage & retention (e.g., a landowner’s retention up to five (5) hectares, subject to rules).
- Transfer restrictions on awarded lands (e.g., 10-year non-transferability from award to persons other than the State, LBP, or heirs—subject to evolving rules).
- Transferee qualifications for private agricultural land (e.g., individuals not exceeding ceiling; corporations subject to constitutional and statutory ownership and use limits).
Land Use Conversion (LUC) rules.
- Prior DAR conversion approval is required before any shift from agricultural to non-agricultural use; improper conversion can invalidate transactions and expose parties to sanctions.
Implementing Administrative Orders (AOs) and circulars.
- These detail who must apply, what documents are needed, evaluation standards, tenurial safeguards (tenants, farmworkers, ARBs), and coordination with the Registry of Deeds.

Practice tip: Procedural details (forms, routing slips, fees) are periodically updated by DAR Central/Regional/Provincial Offices. Always adopt the latest templates issued by the Provincial Agrarian Reform Office (PARO).

III. When You Need DAR Clearance

You typically need DAR Clearance (or the correct DAR certificate) for any instrument that creates, conveys, encumbers, or subdivides agricultural land, including:

Sale, donation, exchange, dación, or other conveyances;
Mortgage or lease over agricultural land;
Subdivision/partition (including among heirs) of agricultural land;
Consolidation of titles involving agricultural land;
Annotation affecting ownership or use (e.g., long-term usufruct/leasehold);
Pre-registration review where the Register of Deeds flags possible CARP issues;
Due diligence in M&A or project finance where target assets include agricultural land;
Zoning/locational compliance that nonetheless remains agricultural in classification.

You generally do not need DAR Clearance for purely non-agricultural land (as classified and documented), though the Registry may still ask for a DAR Certification of Non-Coverage (CNC) or Exemption to close the loop. When in doubt, obtain the appropriate DAR certification.

IV. Who Should Apply

Owner/Seller, Donor, Mortgagor, Lessor, or their authorized representative commonly files the application.
In buyer-driven closings, the Buyer/Mortgagee/Lessor may file with a SPA.
For estates/partitions, the judicial administrator, executor, or heirs (with proof of relationship/authority) file.

V. Where to File

Provincial Agrarian Reform Office (PARO) having jurisdiction over the land.
Some provinces route intake through the Municipal Agrarian Reform Office (MARO) for verification before PARO evaluation.

VI. Core Evaluation Questions

DAR will typically verify:

Land classification & status
- Is the land agricultural as per classification?
- Is it covered, pending coverage, or excluded under CARP?
- Any Notice of Coverage, Listas/targeting, or ongoing LAD (land acquisition & distribution) actions?
Tenurial relations
- Are there tenants, farmworkers, occupants, or ARBs on the property?
- Have they given informed consent? Are legal safeguards satisfied (disturbance compensation, if any)?
Transferee qualifications
- Will the transfer exceed retention/ownership ceilings?
- If a corporation, does it comply with constitutional land ownership caps and allowable uses?
Use and conversion
- Is there an approved DAR Conversion Order?
- If none, is the intended use still agricultural? (Non-agri use without LUC approval is a red flag.)
Title chain and liens
- Are there CLOAs/EPs or annotations (e.g., ARB restrictions, LBP mortgages) that limit transfer?

VII. Documentary Requirements (Typical Set)

Expect a PARO checklist similar to the following. Provide clear copies and bring originals for verification.

Application Form for DAR Clearance (latest provincial/city template).
Government IDs of applicant/authorized representative; SPA or Board Resolution if corporate.
Owner’s Title (OCT/TCT) and current Tax Declaration; if untitled, provide proofs (patents, survey data).
Latest Real Property Tax (RPT) Official Receipts / Tax Clearance.
Lot Plan w/ Technical Description and Vicinity/Location Map prepared by a licensed GE; sometimes a Geo-tagged photo set.
History of Ownership / Certified true copies of relevant deeds (sale, donation, extrajudicial settlement, etc.).
Proposed Instrument (draft deed of sale/donation/mortgage/lease) for pre-clearance review or executed deed for post-execution clearance (check your PARO’s preference).
Affidavit of Aggregate Landholding of the transferee (declaring total agricultural holdings nationwide) to test the ceiling/retention compliance.
Affidavit of Non-Tenancy or list/affidavits identifying tenants/occupants; if tenants exist, evidence of consent or compliance with disturbance compensation rules.
Zoning Certificate or Assessor’s Certification on land classification; CENRO/LGU certifications as locally required.
If land is awarded (CLOA/EP): documents proving allowable transfer (e.g., to heirs; or redemption/repurchase rules if permitted) and DAR approval where required.
If conversion has occurred: DAR Conversion Order and proof of compliance with conditions; if applying for clearance on a converted parcel, attach conversion proof and updated land use records.
Corporate docs (SEC GIS, Articles, list of shareholders, sworn % of Filipino ownership) when the transferee is a corporation.
Other supporting papers the PARO may require after preliminary evaluation.

Practice tip: Some PAROs release a two-track set of templates—(a) Clearance for transfer/encumbrance of agricultural lands; (b) Certification of Non-Coverage/Exemption for lands outside CARP or already non-agricultural. File the correct track to avoid resets.

VIII. Step-by-Step Procedure

Pre-Filing Due Diligence
- Confirm current classification (agricultural vs non-agricultural).
- Secure certified copies of title/tax decs; check annotations for CLOA/EP/LBP liens.
- Interview the barangay and neighbors for tenant/occupant claims.
- Prepare Affidavit of Aggregate Landholding for the transferee.
Filing with PARO (or via MARO intake)
- Submit the accomplished application form plus the documentary set.
- Pay the filing/processing fee (fees vary by province and are periodically adjusted).
- Obtain the claim stub or reference number.
Technical & Legal Evaluation
- Desk review of documents; field validation may be conducted to confirm actual use/occupancy.
- Interviews/verification with tenants/occupants, if any.
- Inter-office checks (e.g., with LBP, ROD, Assessor, LGU Zoning, CENRO) as needed.
Resolution/Issuance
- If compliant, DAR issues the DAR Clearance (or the proper DAR Certification of Non-Coverage/Exemption, as the case may be).
- If deficient, you’ll receive a Notice of Compliance/Deficiency listing requirements or reasons for denial.
Post-Issuance Use
- Present the DAR Clearance to the Register of Deeds for registration of the deed, mortgage, lease, or subdivision.
- Observe validity periods (many clearances specify a limited validity window, commonly 6–12 months, but follow the printed validity on the clearance itself).
- Keep the original and submit certified copies as directed by the ROD.

IX. Special Transaction Scenarios

A. Sale/Donation to a Natural Person

Confirm that the buyer/donee’s total agricultural holdings nationwide will not exceed the ceiling.
Confirm Filipino citizenship for ownership of private lands (constitutional limit).
If land is tenanted, ensure tenurial safeguards (consent/compensation) and no displacement absent lawful grounds.

B. Transfer to a Corporation

Verify Filipino ownership threshold and authorized purposes.
Attach SEC documents and ownership structure.
Corporate lease of agricultural land is typically more flexible than outright ownership.

C. Mortgage/Encumbrance

Mortgagees (banks) often require DAR Clearance before accepting real estate as collateral.
Ensure that AMLC/LBP/CLOA annotations and ARB restrictions are compatible with the encumbrance.

D. Subdivision/Partition (including among heirs)

DAR examines whether subdivision evades coverage or defeats ceilings.
Heirs’ partitions must respect ARB restrictions, retention, and use limitations.
For CLOA/EP lands: transfers usually restricted; succession rules apply.

E. Land Use Conversion Context

If the intended end-use is non-agricultural, obtain DAR Conversion Approval first (unless already converted/exempt).
Clearance for a non-converted agricultural parcel will not authorize non-agricultural use.

X. Common Grounds for Denial or Deferment

Land is covered or under pending coverage by CARP/LAD.
Intended transferee would exceed the landholding ceiling or is otherwise disqualified.
Presence of tenants/ARBs whose rights would be violated.
Unapproved conversion or misdeclared land use.
Incomplete papers, inconsistencies in title/technical description, or uncured tax issues.
CLOA/EP restrictions breached (e.g., attempt to sell within the restricted period).
Misrepresentation in the Affidavit of Aggregate Landholding.

XI. Practical Compliance Tips

Match metes and bounds: The technical description on the title, lot plan, and tax dec must align.
Document the field reality: Geo-tagged photos and barangay certifications reduce back-and-forth.
Respect tenant/ARB rights: If occupants exist, consult early; settlements and documented consent avoid disputes.
Time the filing: Coordinate clearance validity with closing and ROD appointment.
Use the latest forms: PAROs refresh checklists—use the newest application sheet and affidavit templates.
Keep originals & CTCs: RODs often require certified true copies issued within a recent period.

XII. Typical Timeline & Validity (Non-Binding)

Processing time varies by province, workload, complexity (e.g., with or without occupants), and whether field validation is needed. Many clearances carry explicit validity periods (often months, not years). Always check the stamp or footer of the issued clearance for the exact validity and conditions.

XIII. Fees and Official Receipts

PAROs publish fee schedules and require payment upon filing or before release. Always request an Official Receipt and keep it with your closing set. Fees may vary with land area, number of titles, or transaction type.

XIV. Post-Clearance: Registration & After-Care

Submit the clearance with the deed/mortgage/lease to the Register of Deeds; comply with documentary stamp taxes, capital gains/withholding taxes, and transfer taxes as applicable.
Monitor title issuance/annotations.
If the land is to remain agricultural, ensure continued lawful agricultural use; for future conversion, secure separate DAR approval.

XV. Quick Checklists

Applicant’s One-Page Checklist

Latest application form (PARO template)
ID/SPA/Board Resolution (as applicable)
Title (CTC), Tax Dec (latest), RPT OR/Tax Clearance
Lot plan + vicinities (licensed GE)
Proposed/Executed Instrument (sale/donation/lease/mortgage)
Affidavit of Aggregate Landholding (transferee)
Affidavit of Non-Tenancy or tenants’ documents
Zoning/Assessor certification; CENRO/LGU clearances as required
Conversion Order (if any) or proof of non-coverage/exemption
Corporate attachments (if transferee is a juridical entity)

Red-Flag Screen (Before Paying Taxes/Closing)

Any CLOA/EP annotation or LBP mortgage on title?
Any Notice of Coverage/LAD activity?
Occupants/tenants identified and consulted?
Ceiling/retention computations prepared and defensible?
Intended use consistent with agricultural classification (or backed by LUC Order)?

XVI. Frequently Asked Questions

1) Is DAR Clearance the same as a Certificate of Non-Coverage (CNC) or Exemption? No. Clearance authorizes a transaction over agricultural land; a CNC/Exemption certifies status (e.g., not covered by CARP or already non-agricultural). Some RODs accept a CNC/Exemption in lieu of clearance if the land is demonstrably outside CARP; follow your PARO/ROD’s instruction.

2) If my land has a DAR Conversion Order, do I still need clearance? RODs often still ask for proof (conversion order + compliance) and may accept a DAR certification referencing the order. Check with PARO/ROD; many still require a DAR document to harmonize records.

3) Can awarded lands (CLOA/EP) be sold? Such lands carry transfer restrictions (e.g., limited to heirs within a restricted period, among other conditions). Unauthorized transfers risk nullity and sanctions. Secure DAR guidance before attempting any transfer.

4) Does a lease need clearance? Long-term leases usually do, because they affect use and possession; short-term agricultural leases may be processed differently. When in doubt, seek clearance.

5) How long is a clearance valid? Refer to the validity period printed on the clearance. If it lapses before registration, you may need revalidation or reissuance.

XVII. Model Clauses & Affidavit Starters (for Counsel Drafting)

Affidavit of Aggregate Landholding (Starter): “I, [Name], of legal age, Filipino, … do hereby declare that my total agricultural landholdings in the Philippines, inclusive of the property subject of this transaction, do not exceed the statutory ceiling, and that this declaration is true and correct to the best of my knowledge…”

Tenancy/Occupant Undertaking (Starter): “The parties acknowledge the presence/absence of tenants/occupants on the land. Where present, the transfer shall respect all tenurial rights under agrarian laws; no displacement shall occur except in accordance with law and with required compensation/consent.”

(Adapt these to the latest PARO templates and local practice.)

XVIII. Final Notes

Local practice matters. PAROs and RODs maintain checklists and routing tailored to their jurisdiction. Secure the exact current list before filing.
Keep transaction sequencing tight. Align clearance validity, tax compliance, and ROD intake to avoid lapses.
When in doubt, get a pre-filing huddle with the PARO legal/technical unit—it saves weeks.

Disclaimer

This article provides general information for the Philippine setting and is not legal advice. Agrarian rules and administrative forms evolve; consult the DAR PARO/MARO or qualified counsel for the latest requirements and to address facts unique to your property and transaction.