Is the Department of Agrarian Reform (DAR) Still Involved After Issuance of an eCAR?

A Comprehensive Guide to Property Transfers in the Philippines (with an Agrarian Reform Lens)

Executive summary

The eCAR (electronic Certificate Authorizing Registration) is a Bureau of Internal Revenue (BIR) tax-clearance document that allows the Registry of Deeds (RD) to register a transfer.
DAR does not issue the eCAR.
DAR may still be involved after eCAR if the land is agricultural or subject to agrarian reform rules (e.g., CLOA/EP titles, conversion, DAR clearance for transfers, retention-limit review, or certifications that the land is not CARP-covered).
For non-agricultural properties (e.g., condo units, townhouses on land long reclassified and converted, purely urban lots), DAR is typically not involved beyond any earlier conversion/exemption that may already exist.
Practically, RDs often require DAR-related clearances for agricultural lands even if the BIR has already issued the eCAR.

I. Key agencies and what they do

BIR — Assesses and collects transfer taxes, then issues the eCAR as tax clearance for registration.
Registry of Deeds (LRA) — Registers deeds, cancels/creates titles. Will not proceed without a valid eCAR and any other agency clearances required by law (including DAR, if applicable).
DAR — Administers the Comprehensive Agrarian Reform Program (CARP). Controls agrarian reform beneficiary (ARB) land transfers, land use conversion approvals for agricultural land, retention-limit compliance, and various clearances/certifications connected with transfers of agricultural land.
LGU/Assessor/Treasurer — Reclassification (legislative act), tax declaration updates, local transfer tax, and real property tax (RPT) matters.
DENR/DA/DHSUD (formerly HLURB) — May be relevant for land classification (alienable/disposable vs. forest), irrigation/rice-and-corn restrictions, or subdivision/condo regulation.

II. What the eCAR is (and isn’t)

What it is: A BIR-issued electronic certificate confirming that applicable national transfer taxes (e.g., Capital Gains Tax or Creditable Withholding Tax, Documentary Stamp Tax, Donor’s Tax, Estate Tax) have been properly paid/processed for a specific property and deed.
What it isn’t: It is not a substitute for other substantive regulatory approvals. It does not certify agrarian compliance, land classification, or conversion status. It does not force the RD to register if other legal prerequisites (like DAR clearance for agricultural land) are missing.

III. When is DAR still involved after BIR issues the eCAR?

A. Transfer of agricultural land (non-ARB land)

Even after eCAR issuance, RDs commonly require a DAR Clearance (sometimes called a DAR certification/Order) before registering a deed that transfers agricultural land. This clearance checks, among others:

Whether the land is CARP-covered or under a Notice of Coverage;
Retention-limit rules (to prevent a buyer from amassing agricultural land beyond allowed limits or a seller from evading coverage);
That the transfer does not frustrate agrarian reform (e.g., piecemeal transfers to defeat coverage).

Practical effect: You may hold an eCAR but still need to secure a DAR clearance before RD will process the new title for agricultural land.

B. Transfer of CLOA/EP lands (ARB-awarded)

For CLOA (Certificate of Land Ownership Award) or Emancipation Patent (EP) titles:

There is a statutory 10-year restriction from award/registration during which ARBs generally cannot sell/transfer the land except to the government, Land Bank, or to other qualified beneficiaries (or by hereditary succession).
Even beyond 10 years, further conditions often apply: full payment of amortizations, DAR approval, and continued compliance with agrarian laws.
Consolidation/subdivision or partition among heirs may still pass through DAR for verification of ARB status/conditions.

Practical effect: eCAR alone won’t overcome ARB restrictions; DAR approvals remain pivotal.

C. Land Use Conversion (LUC) or Exemption issues

If land remains agricultural by classification, DAR conversion approval is generally required before using it for non-agricultural purposes or before a transfer premised on a non-agricultural use (e.g., residential/commercial development).
Where the land was properly reclassified by the LGU before certain cut-off dates and meets legal requisites, DAR may issue an exemption or certification (e.g., “no need for conversion” because LGU reclassification applies).
Irrigated, irrigable, or prime agricultural lands are typically non-convertible or strictly regulated.

Practical effect: If the deal hinges on non-agricultural use, you may need a DAR conversion approval or exemption certification—even with an eCAR in hand.

D. Mortgages, leases, or other encumbrances over agricultural land

Certain real rights (mortgage, lease, etc.) involving agricultural land can trigger DAR clearance requirements to ensure agrarian policy isn’t undermined.

E. Corrective actions after registration issues

If the RD flags agrarian concerns (e.g., title history shows CLOA ancestry or the tax declaration shows “agricultural”), DAR intervention or clarificatory certifications may be requested post-eCAR to proceed.

IV. When is DAR typically not involved?

Non-agricultural properties (e.g., condo units, commercial buildings, fully converted/reclassified subdivisions with complete prior approvals) generally do not require DAR clearances at transfer—assuming conversion/exemption is already settled and reflected in the title/property documents.
Parking slots, chattel, improvements without land — no DAR role.

V. The end-to-end property transfer workflow (Philippine practice)

The steps vary slightly by city/municipality, RD, and the property’s history, but the sequence below reflects common, practical order. Insert or omit DAR steps depending on land classification.

Phase 1: Due diligence & deal structuring

Title & encumbrance check (RD-certified title, latest tax declaration, certified true copy, and a recent Certified True Copy (CTC) of title with annotations).
Land classification: Determine if the property is agricultural; review zoning (LGU), any DAR conversion/exemption orders, DENR classification (A&D vs. forestlands), DA/NIA rice-and-corn/irrigation constraints.
Agrarian reform history: Look for CLOA/EP ancestry, Notices of Coverage, annotations referencing CARP.
Survey and boundaries: Validate with a Relocation/Verification Survey, check for overlaps, road lots, right-of-way, or unregistered improvements.
Tax & arrears: Check RPT status, penalties, and assess LGU zonal values vs. BIR zonal values (if any) and FMV for tax computations.
Deal form: Sale, donation, exchange, corporate transfer, or inheritance—each has distinct tax bases and document lists.

Phase 2: Secure agrarian/zoning prerequisites (where applicable)

If agricultural and to be transferred as agricultural: apply for DAR Clearance for sale/transfer.
If non-agricultural use is intended and land is still agricultural by classification: secure DAR Land Use Conversion (LUC) approval; or, if already LGU-reclassified and qualifies, get a DAR exemption/no-conversion-required certification.
If CLOA/EP: ensure restriction periods are observed; if transfer is allowed, comply with DAR documentary approvals.
Keep evidence of these approvals; RDs and BIR may ask for them depending on context.

Phase 3: Execute deed & preliminary LGU steps

Sign the Deed (of Absolute Sale/Donation/Exchange, etc.) and notarize.
Obtain Tax Clearance from the LGU (no RPT arrears) and update tax declaration information as needed (some LGUs require post-registration).
If required by LGU: Secure zoning/locational clearance (especially if the transfer is tied to a particular use).

Phase 4: BIR tax compliance (eCAR stage)

Depending on the transaction:

Sale of capital asset (individual seller): 6% Capital Gains Tax (on higher of gross selling price or zonal/assessed value) + Documentary Stamp Tax (commonly 1.5% on higher of consideration or FMV for real property conveyances).
Sale of ordinary asset (corporate seller): Creditable Withholding Tax/Income Tax regime may apply; DST still applies.
Donation: Donor’s Tax + DST.
Estate transfer: Estate Tax (with possible deductions) + eCAR for estate.
Other filings: Attach required IDs/TINs, RDO forms, deed, title/TD copies, zonal valuation support, and any DAR papers relevant to land classification or restrictions (BIR sometimes cross-checks when land is agricultural).

Output: BIR issues the eCAR for the specific deed/property.

Phase 5: Registration with the Registry of Deeds

Submit to RD:

Owner’s duplicate title, original deed, eCAR, DST proof, Transfer Tax receipt (LGU), and Registration Fees (LRA schedule).
If agricultural: DAR Clearance and/or DAR conversion/exemption documents; RD staff commonly request these even post-eCAR.
RD evaluates completeness and legality; if in order, RD cancels the old title and issues a new TCT/CCT in buyer’s name.

Phase 6: Post-registration LGU updates

Present new title to Assessor for new tax declaration issuance.
Update Treasurer records for billing and future RPT.
If there are improvements (buildings), ensure their tax declarations are transferred or separately issued.

VI. Special situations and nuances

1) Transfers involving CLOA/EP land

Pre-10 years: sale/transfer generally prohibited except limited statutory exceptions.
Post-10 years: verify full amortization payment and DAR rules; some transfers remain restricted to qualified beneficiaries or require DAR approval.
Partition among heirs: usually allowed by succession, but the CLOA/EP conditions tack to the land—DAR verification advised.

2) Land reclassification vs. conversion

Reclassification is an LGU legislative act changing land zoning category.
Conversion is a DAR administrative approval allowing change in actual use of agricultural land.
Prior valid reclassification (subject to legal cut-offs) may allow a DAR exemption instead of full conversion; otherwise, DAR LUC is needed.

3) Agricultural encumbrances

Mortgages, long leases, or easements over agricultural land may still require DAR clearance. Banks often ask for DAR confirmations before lending on agricultural collateral.

4) Corporate or large-area acquisitions

Expect retention-limit scrutiny (directly or indirectly owned lands). DAR may request affidavits, corporate disclosures, or area maps to ensure compliance.

5) Estates and donations

Estate transfers: BIR issues estate eCARs; DAR involvement arises only if property is agricultural and transfer or consolidation will impact agrarian coverage or conversion.
Donations of agricultural land can still require DAR clearance before RD will register.

6) Condominiums and purely urban properties

Generally outside DAR—unless the underlying land history shows agricultural origin without proper conversion. RDs typically focus on BIR eCAR + DST + LGU transfer tax and standard registration requirements.

VII. Typical document checklists

If agricultural land (non-CLOA)

Notarized Deed (sale/donation/exchange, etc.)
BIR eCAR + tax payment proofs (CGT/CWT, DST; if donation/estate, the corresponding taxes)
DAR Clearance for transfer; and if applicable, DAR LUC approval or DAR exemption certification
Owner’s duplicate title, latest tax declaration(s), tax clearance (RPT)
Valid IDs/TINs; Proof of authority for corporations (Board Resolutions, Secretary’s Certificate)
Transfer Tax receipt (LGU), Registration Fees (RD)
Survey plan/technical description (if there are boundary issues, subdivisions, consolidations)

If CLOA/EP land

All of the above plus DAR documentary approvals demonstrating eligibility to transfer (post-restriction period, full payment, permitted transferee, etc.)

If non-agricultural land/condo

Notarized Deed
BIR eCAR + tax proofs
Owner’s duplicate title, TD, tax clearance
Transfer Tax receipt (LGU), Registration Fees (RD)
IDs/TINs, corporate authorities
Prior DAR conversion/exemption papers only if the RD queries the land’s historical classification.

VIII. Practical timelines and tips

Sequence matters: Clear DAR prerequisites early if the land is or might be agricultural; do not wait until after eCAR.
Title review: Pay attention to annotations referencing CLOA/EP, CARP, LUC, NOC, or emancipation patents—these are red flags for DAR involvement.
Coordinate with RD frontliners: Different RDs have nuanced documentary checklists for agricultural transfers; ask for their latest list before lodging.
Avoid use-mismatch: Don’t premise a transaction on non-agricultural use without DAR conversion/exemption where required—this can stall registration even with a valid eCAR.
Bank financing: For agricultural collateral, expect DAR clearance and sometimes DA/NIA input; build that into the timeline.

IX. Short answers to the headline question

Q: Is DAR still involved after issuance of an eCAR? A: Possibly, yes—if the land is agricultural or has agrarian reform implications. The eCAR only covers tax compliance. DAR clearances/approvals may still be needed for registration or lawful use of agricultural properties, CLOA/EP lands, or land-use changes.

Q: If the property is clearly non-agricultural, converted long ago, or a condominium? A: Usually no ongoing DAR role in the transfer itself. Proceed with standard BIR-RD-LGU steps using the eCAR.

X. Disclaimer

This article summarizes common Philippine practices and legal principles on property transfers and agrarian implications. Application varies by facts, locality, and evolving regulations. For specific transactions—especially those involving agricultural land, CLOA/EP titles, or conversion—consult a Philippine real estate or agrarian law practitioner and confirm current local RD and DAR documentary checklists.