Is DAR Still Involved After Issuance of a BIR eCAR for Property Transfers?

(Philippine legal context)

Executive summary

Short answer: Often, yes—if the land is (or was) agricultural or CARP-affected, the Department of Agrarian Reform (DAR) can still be involved even after the Bureau of Internal Revenue (BIR) issues an electronic Certificate Authorizing Registration (eCAR).

The eCAR proves taxes on the transfer have been settled. It does not certify agrarian compliance, land-use legality, or the registrability of the deed under agrarian laws. For many agricultural transactions, registries will still ask for DAR clearances or certifications before accepting transfer for registration—and DAR can later nullify or call out transfers that violate agrarian rules.

What the eCAR does—and does not—do

What it does:

Confirms payment (or exemption) of capital gains/creditable withholding tax, documentary stamp tax, and related transfer taxes for a specific deed and property.
Is a tax prerequisite for registration with the Registry of Deeds (ROD).

What it does not do:

It is not a waiver of agrarian restrictions, land-use controls, or tenure rules.
It is not proof the transferee is qualified to own agricultural land under agrarian law, nor that the land may lawfully be converted to non-agricultural use.
It does not bind DAR or the ROD to register an otherwise non-registrable transfer.

When DAR remains relevant after eCAR

1) Property is agricultural or may be CARP-covered

Coverage/exclusion questions: If the land is agricultural—or records suggest possible CARP coverage—registries and notaries commonly require DAR certifications (e.g., coverage/exemption/exclusion) to show whether the parcel is within CARP or outside its scope.
“Old reclassification” vs “conversion”:
- If the land was validly reclassified as non-agricultural before 15 June 1988, parties typically secure a DAR exemption/exclusion certification (recognizing the pre-CARP reclassification).
- If reclassification occurred on/after 15 June 1988, a DAR conversion order (or proof of an earlier valid conversion) is generally required before non-agricultural use or certain transfers.

2) Awarded lands (CLOA/EP) and beneficiary transfers

Prohibitions & approvals: Lands awarded under CARP (e.g., via CLOA or Emancipation Patent) are subject to a 10-year alienation bar, continued liability for amortization, use restrictions, and transfer only to heirs or to qualified beneficiaries—often with DAR approval and annotation.
Registry controls: RODs typically require DAR endorsements (e.g., DAR approval to transfer, clearance/verification that conditions have been met) even if an eCAR has been issued.
Post-registration risk: Unauthorized sales of CLOA lands can be voidable; DAR may pursue cancellation or reversion proceedings despite a registered deed.

3) Transactions that change ownership but raise agrarian compliance issues

Mortgages/foreclosures of agricultural lands: Some registries require DAR clearance before accepting mortgages/foreclosures affecting CARP-covered lands.
Corporate acquisitions & landholding limits: DAR may evaluate retention limits (e.g., the 5-hectare cap) and the qualification of transferees.
Partitions, exchanges, and donations: Agrarian qualifications and restrictions still apply; DAR documents are often needed even if taxes (and therefore the eCAR) are in order.
Succession: Heirs may succeed to CLOA lands, but subsequent dispositions typically remain subject to DAR rules and approvals.

4) Land use and development

Conversion & zoning compliance: To register transfers that imply or enable non-agricultural use, RODs may require a DAR conversion order (or proof the land is non-agricultural for CARP purposes).
Permits beyond DAR: Local zoning, HLURB/HSAC-related permits, and environmental clearances are separate from tax clearance and may be screened at registration.

Practical flow: where the eCAR fits

Due diligence (pre-eCAR):
- Determine land classification (agricultural vs non-agricultural).
- Check for CARP coverage, CLOA/EP annotations, conversion orders, notices of coverage, tenancy/agrarian cases, retention, or pending DAR proceedings.
- If agricultural, secure relevant DAR certifications (coverage/exemption/exclusion) or conversion orders as needed.
Tax stage:
- File and pay taxes; secure BIR eCAR.
Registration stage (post-eCAR):
- Submit deed + eCAR + DAR documents (if applicable) + other local and national requirements to the ROD.
- The ROD may refuse registration if agrarian prerequisites are missing—even if the eCAR is complete.
Post-registration compliance:
- Keep agrarian restrictions annotated.
- Expect that DAR retains jurisdiction over agrarian disputes, beneficiary qualification, and CLOA/EP compliance; non-compliant transfers can be investigated or set aside.

Common scenarios and what’s still required after eCAR

Scenario	Is DAR typically still involved?	What is usually looked for (illustrative, not exhaustive)
Sale of purely non-agricultural land (e.g., titled as residential, commercial, industrial, and not CARP-affected)	No, except to the extent the ROD asks for proof it’s outside CARP	Zoning/use docs; sometimes a DAR exemption/exclusion cert for lands reclassified prior to 15 June 1988
Sale of agricultural land not previously converted	Yes	DAR coverage/exemption certification; transferee qualification; sometimes DAR clearance
Transfer of CLOA/EP land within 10 years or while obligations subsist	Yes—heavily	DAR approval, beneficiary qualification, amortization status; restrictions must be annotated
Mortgage/foreclosure over agricultural/CARP land	Often	DAR clearance or proof of non-coverage; compliance with beneficiary rules
Partition, donation, tax-free exchange of agricultural land	Often	Same agrarian compliance as a sale (coverage/exemption, qualifications, limits)
Corporate restructuring involving agricultural land	Often	Review of retention limits, transferee qualification, and agrarian approvals
Transfer by succession of CLOA land	Yes (but allowed)	Heirship proof; continued agrarian restrictions and DAR verification; prior approval/annotation practices vary

Key legal ideas that outlive the eCAR

CARP coverage controls ownership and use, independent of tax compliance.
Beneficiary-awarded titles (CLOA/EP) carry statutory restrictions, including a 10-year prohibition on alienation, cultivation/use obligations, and allowed transfers only to heirs or qualified beneficiaries, subject to DAR oversight.
Land conversion to non-agricultural use requires DAR approval, unless the parcel is properly exempt/excluded (e.g., valid pre-CARP reclassification).
ROD gatekeeping: Registrars can insist on DAR documents as a condition for registration; registration in breach of agrarian law can be challenged.
Continuing DAR jurisdiction: DAR can investigate and act on agrarian law violations even after an ROD registers the deed based on an eCAR.

Practical checklist for conveyancers and owners

Classify the land: agricultural vs non-agricultural (and how/when it became so).
Trace agrarian history: CLOA/EP? Notice of coverage? Pending DAR cases? Retention orders? Tenancy claims?
Secure the right DAR paper:
- Exemption/Exclusion Certification (for valid pre-1988 reclass).
- Conversion Order (for post-1988 shifts to non-ag use).
- DAR Clearance/Approval for CLOA/EP transfers, mortgages, or beneficiary substitutions.
Align transferee qualifications: natural-person farmer/beneficiary where required; watch corporate/foreign ownership limits for agricultural land.
Annotate restrictions on the new title; maintain compliance post-registration.
Then finalize tax filings and obtain eCAR; submit eCAR + DAR docs to the ROD.

Frequently asked questions

Does the eCAR “override” DAR? No. The eCAR is a tax clearance; agrarian compliance is a separate legal track.

If the ROD registered my deed with an eCAR but without DAR documents, is everything safe? Not necessarily. DAR can still act on agrarian violations; transfers contrary to CARP or CLOA restrictions may be voidable or subject to cancellation/reversion.

For non-agricultural land in cities, do I still need anything from DAR? Often no—but many RODs still ask for proof of non-coverage (e.g., an exemption/exclusion certification) if the property history hints at agricultural origin or if reclassification timing is unclear.

Is succession exempt from agrarian limits? Heirs may succeed, but agrarian restrictions continue and subsequent dispositions still need DAR compliance.

Bottom line

Obtaining a BIR eCAR is necessary but not sufficient for many property transfers—particularly where agricultural land or CARP-awarded titles are involved. Expect DAR involvement to persist after eCAR issuance in the form of required clearances, conversions, approvals, and continuing jurisdiction over agrarian compliance. Plan transactions so that DAR requirements are addressed before registration, not after.

This article provides general information and is not legal advice. For a specific parcel or transaction, consult counsel and confirm current agency practices at the DAR, BIR, and Registry of Deeds with jurisdiction over the property.