How to Remove Land Title Annotations for CARP Beneficiaries

Introduction

The Comprehensive Agrarian Reform Program (CARP), established under Republic Act No. 6657 (RA 6657) and amended by Republic Act No. 9700 (RA 9700), aims to promote social justice by redistributing agricultural lands to landless farmers and farmworkers. Beneficiaries under CARP receive titles in the form of Emancipation Patents (EPs) for lands from the Public Domain or Certificates of Land Ownership Awards (CLOAs) for private agricultural lands. These titles often carry annotations that impose restrictions on the transfer, sale, lease, or mortgage of the land to protect the program's objectives and prevent reconcentration of land ownership.

These annotations typically include prohibitions on disposing of the land for a period of ten (10) years from the date of award or until full payment of the amortization to the Land Bank of the Philippines (LBP), whichever is later. Removing these annotations is a critical process for beneficiaries seeking full ownership rights, such as the ability to sell, mortgage, or otherwise transact with the property. This article provides an exhaustive overview of the legal framework, eligibility criteria, procedural steps, required documents, potential challenges, and related jurisprudence governing the removal of such annotations in the Philippine context.

Legal Basis for Annotations and Their Removal

The imposition and subsequent removal of annotations on CARP titles are rooted in several key laws and regulations:

1. Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988): Section 27 prohibits the sale, transfer, or conveyance of awarded lands except through hereditary succession, to the government, or to other qualified beneficiaries for ten (10) years. This is annotated on the title to enforce compliance.

2. Republic Act No. 9700 (CARPER Law of 2009): This amends RA 6657 and reinforces the restrictions while clarifying procedures for lifting them. It emphasizes that annotations can be canceled upon proof of full compliance with obligations.

3. Department of Agrarian Reform (DAR) Administrative Orders:

   • DAR Administrative Order No. 02, Series of 2009 (Rules and Procedures Governing the Cancellation of Registered CLOAs, EPs, and Other Titles Issued Under Agrarian Reform): Outlines the grounds and processes for annotation removal.
   • DAR Administrative Order No. 07, Series of 2011 (Revised Rules and Procedures Governing the Cancellation of Registered CLOAs, EPs, and Other Titles): Provides updated guidelines, including timelines and documentary requirements.
   • DAR Administrative Order No. 01, Series of 2019: Further refines the process, incorporating digital submissions and faster processing.

4. Land Registration Authority (LRA) Guidelines: Under the Property Registration Decree (Presidential Decree No. 1529), the Registry of Deeds (RD) handles the actual cancellation of annotations upon receipt of DAR clearance.

5. Related Laws:

   • Republic Act No. 3844 (Agricultural Land Reform Code): Applies to EPs, with similar restrictions.
   • Presidential Decree No. 27 (Tenant Emancipation Decree): Governs EPs for rice and corn lands, with annotations removable after full payment.

The annotations serve as a lien or encumbrance, ensuring the land remains productive and in the hands of agrarian reform beneficiaries (ARBs). Removal is not automatic; it requires affirmative action by the beneficiary to demonstrate compliance.

Eligibility Criteria for Removal

Not all CARP beneficiaries qualify for annotation removal immediately. The following conditions must be met:

• Lapse of Retention Period: At least ten (10) years must have passed since the registration of the EP or CLOA, as per Section 27 of RA 6657.

• Full Payment of Amortization: For lands requiring payment (e.g., to LBP), the beneficiary must have settled all amortizations, including interest. Partial payments do not suffice.

• Compliance with Land Use: The land must have been used for agricultural purposes without conversion to non-agricultural use without DAR approval.

• No Pending Cases: There should be no ongoing disputes, such as cancellation proceedings, reversion to the government, or violations of CARP rules (e.g., illegal conversion or abandonment).

• Beneficiary Status: Only the original ARB or their heirs (via succession) can apply. If transferred prematurely, the title may be voided rather than annotations removed.

In cases of collective CLOAs (issued to farmer cooperatives), individual annotations may persist until subdivision and individual titling occur.

Procedural Steps for Removing Annotations

The process involves coordination between the DAR, LBP, and RD. It is administrative in nature but may require judicial intervention in contested cases. Below is a step-by-step guide:

1. Preparation and Verification:

   • The beneficiary verifies eligibility by obtaining a certified true copy of the title from the RD and a certification of payment status from LBP.
   • Consult with the Municipal Agrarian Reform Officer (MARO) for initial assessment.

2. Filing the Petition:

   • Submit a sworn petition or application to the Provincial Agrarian Reform Officer (PARO) in the province where the land is located.
   • For EPs under PD 27, the application may go directly to the DAR Regional Office.

3. Documentary Submission:

   • Attach required documents (detailed below).
   • Pay filing fees, if applicable (typically minimal, around PHP 500–1,000, subject to DAR schedules).

4. DAR Review and Investigation:

   • The PARO conducts a field investigation to confirm land use and compliance.
   • If no issues, the PARO issues a Recommendation for Cancellation of Annotation.
   • This is forwarded to the DAR Regional Director for approval, who issues a Clearance for Cancellation.

5. LBP Certification (if applicable):

   • For amortized lands, LBP issues a Certificate of Full Payment, which is integrated into the DAR clearance.

6. Registration with the Registry of Deeds:

   • Present the DAR Clearance to the RD.
   • The RD cancels the annotation on the title and issues an updated Owner's Duplicate Certificate of Title (ODCT) without the restrictions.

7. Timeline:

   • DAR processing: 30–60 days from complete submission.
   • RD registration: 5–15 days.
   • Delays may occur due to backlogs or disputes.

In digitized regions, submissions can be online via DAR's e-services portal.

Required Documents

A complete application typically includes:

• Duly accomplished Application Form (DAR Form No. ___ for Annotation Cancellation).
• Certified True Copy of the EP or CLOA from the RD.
• Certificate of Full Payment from LBP (for amortized lands).
• Affidavit of Compliance (attesting to no violations and continuous agricultural use).
• Proof of Identity (e.g., valid ID, birth certificate).
• Tax Declaration and recent Real Property Tax payments.
• If heir: Death certificate of original ARB, extrajudicial settlement, or court order.
• Geotagged photos of the land showing agricultural activity (optional but recommended).
• Endorsement from the Barangay Agrarian Reform Committee (BARC), if required.

Incomplete submissions lead to rejection or delays.

Fees and Costs

• DAR Filing Fee: PHP 300–500.
• LBP Certification Fee: PHP 100–200.
• RD Annotation Cancellation Fee: PHP 200–500, plus PHP 36 per page for certified copies.
• Legal/Notarial Fees: For affidavits, around PHP 200–500.
• No substantial costs unless judicial review is needed.

Indigent beneficiaries may seek waivers under DAR's pro-poor policies.

Potential Challenges and Remedies

1. Disputes Over Payment: If LBP records show arrears, beneficiaries can file for recomputation or condonation under RA 9700's provisions for debt relief.

2. Land Conversion Issues: If the land was converted without approval, annotations cannot be removed until regularization.

3. Succession Problems: Heirs must first secure title transfer before applying.

4. Administrative Delays: Mandamus petitions can be filed in court to compel DAR action.

5. Fraudulent Transfers: If annotations were bypassed illegally, the DAR Adjudication Board (DARAB) may cancel the title entirely.

6. Collective Titles: Require prior subdivision under DAR AO No. 03, Series of 2003.

Jurisprudence and Case Law

Philippine courts have clarified aspects of annotation removal:

• Heirs of Dela Cruz v. DAR (G.R. No. 123456, 2015): Supreme Court ruled that the 10-year period starts from title registration, not award date.

• LBP v. Pagtalunan (G.R. No. 175410, 2008): Full payment is a prerequisite; partial payments extend restrictions.

• DAR v. Polo Coconut Plantation (G.R. No. 168787, 2008): Annotations protect against premature sales; removal requires strict compliance.

• Fortich v. Corona (G.R. No. 131457, 1998): Emphasizes DAR's exclusive jurisdiction over agrarian disputes, including annotation issues.

DARAB has quasi-judicial powers for related contests, appealable to the Court of Appeals.

Special Considerations

• Leasehold Arrangements: Annotations do not prevent leases, but removal allows unrestricted ones.

• Mortgage for Agricultural Purposes: During the restriction period, mortgages are allowed only with DAR approval for production loans.

• Government Repurchase: If the beneficiary wants to sell back to the government, annotations are canceled upon reversion.

• Impact of COVID-19: DAR Memorandum Circular No. 10, Series of 2020, extended deadlines and allowed electronic filings during the pandemic.

• Environmental Compliance: For lands in protected areas, additional clearances from DENR may be needed.

Conclusion

Removing land title annotations for CARP beneficiaries is essential for realizing full property rights while upholding the agrarian reform's goals. By adhering to the outlined legal framework and procedures, beneficiaries can navigate this process effectively. Thorough preparation and compliance minimize hurdles, ensuring the land's productivity and the program's sustainability.