Reckoning Period for the 10-Year Restriction on CLOA Titles in the Philippines

Short answer up front: For land covered by a Certificate of Land Ownership Award (CLOA) under the Comprehensive Agrarian Reform Program, the 10-year ban on sale/transfer is generally reckoned from the date the CLOA is registered with the Register of Deeds, i.e., the date the title is entered/inscribed in the registry. That registration date—not the ceremonial “award date” or the date the Secretary signed the CLOA—normally starts the clock.

Below is the full, practice-oriented guide.

Key takeaways

What the ban covers. For 10 years, a CLOA beneficiary cannot sell, transfer, or convey the land except (a) by hereditary succession, or (b) to the Government/Land Bank/DAR or another qualified agrarian reform beneficiary (ARB) via DAR.
When 10 years begins. Count from registration of the CLOA with the Register of Deeds (ROD). The restriction is an annotation on the title and becomes legally operative upon registration/inscription.
What happens after 10 years. Transfers to non-ARBs may be allowed only if the beneficiary has fully paid amortizations and secured DAR/land-bank clearances and other standard conveyancing requirements.
Violations. Sales or mortgages made in breach of the ban are typically void and subject to cancellation/reversion through DAR/DARAB proceedings; buyers cannot claim good faith against an annotated restriction.
Succession is always allowed. Heirs may succeed even within the 10-year period, subject to assuming obligations (e.g., amortizations) and agrarian eligibility rules where applicable.

Legal frame in plain language

Statutory basis. The 10-year non-transferability rule comes from the Comprehensive Agrarian Reform Law (CARL) (R.A. 6657, as amended by R.A. 9700).
Torrens system logic. Rights and encumbrances on registered land take effect upon registration (Property Registration Decree). The 10-year restriction lives as an encumbrance on the TCT/CLOA; hence practice (and jurisprudence) reckons the period from registration/inscription.

How to find the correct reckoning date on a CLOA

Look at the title itself (not the deed).
- Find the “Date of Entry/Inscription” on the face of the TCT/CLOA (upper margin or first page details).
- Check the “Memorandum of Encumbrances” page; the 10-year ban is normally annotated there with an entry number and date.
Use the earliest registration/inscription date that put the CLOA—and its restriction—on the registry books for that landholding.
Ignore ceremonial/issuance dates that were not registered (e.g., a community awarding ceremony date).

Example: If the CLOA shows: – “Issued: 10 March 2015” (signature date) – “Registered: 22 July 2016” (entry/inscription at ROD) Start counting 22 July 2016 → 22 July 2026.

Computing the 10-year period correctly

Use civil-code style calendar years: the period ends on the same calendar date 10 years later.
- 15 March 2013 → 15 March 2023.
- 29 Feb 2016 → 28 Feb 2026 (no Feb 29 in 2026; use last day of February).
A sale dated a few days before the 10-year anniversary (even if presented after) still breaches the ban.

What transactions are (and aren’t) allowed during the 10 years

Prohibited without qualifying exception:

Sale, donation, barter, assignment of ownership or equivalent conveyance to anyone other than:
- Heirs by hereditary succession;
- The Government/Land Bank/DAR; or
- Another qualified ARB through DAR processes.
Mortgages/encumbrances to private lenders are generally treated as prohibited conveyances unless expressly allowed under DAR/LBP rules (production credit facilities sometimes require DAR/LBP approval).

Potentially allowed with DAR structures:

Agribusiness venture arrangements (AVAs) or leases may be possible only under DAR’s specific AVA/lease guidelines and approvals. An informal lease or “aryendo” that sidelines the beneficiary’s tillage is risky and often voidable.

Always allowed:

Hereditary succession (transfer to heirs) at any time, with heirs stepping into obligations (e.g., amortizations, cultivation).

After the 10 years: what still matters

Even after the 10-year clock runs out, you typically cannot just walk into the ROD and transfer like an ordinary private land:

Full payment of the land price/amortizations (Land Bank lien must be settled).
DAR/LBP clearances customarily required by RODs (e.g., DAR transfer clearance / certification that agrarian liens have been lifted).
Buyer qualifications no longer need to be ARB-qualified if the 10-year period has lapsed and legal liens are cleared—but:
- Constitutional limits still apply (e.g., land ownership by Filipinos/qualified corporations only).
- Land use conversion remains a separate regime; agricultural land cannot be used for non-agricultural purposes without DAR conversion clearance and local/national permits.
- Special laws (e.g., indigenous peoples’ domain, protected areas, timberland) may impose independent constraints.

Violations: effects and remedies

Effect of a premature sale or mortgage. Typically void for violating the statutory restriction and the express title annotation.
Who can challenge. DAR/DARAB, the original ARB or heirs, and sometimes the Land Bank/Government may initiate cancellation, reversion, or reconveyance proceedings.
Good-faith purchaser defense. Rarely succeeds: the restriction is on-title; registration gives constructive notice to the world.
Criminal/administrative angles. Agrarian laws penalize acts that undermine CARP (e.g., simulated transfers, abandonment, illegal leasing). Beneficiaries can be disqualified, and titles cancelled.

Special situations (and how the reckoning works)

Collective CLOAs and parcelization. If a collective CLOA (co-owned) is later parcelized into individual titles, do not restart the clock. The safer view is that the 10-year period still tracks the original CLOA’s registration date because the award traces to that original inscription.
Reissuance/replacement titles. Administrative reissuance (e.g., lost/damaged title) or corrections do not reset the 10-year count.
Post-award disqualification/abandonment. If a beneficiary abandons the land or ceases to cultivate without legal excuse, DAR may cancel the award and reallocate to another qualified beneficiary—independent of the 10-year calendar.
Emancipation Patents (EPs) vs CLOAs. EPs (under P.D. 27) have different text and history. Don’t mix them up; check the exact annotation on the title and follow the EP/CLOA-specific rule.

Practical checklist for lawyers, LGUs, and conveyancers

Get a certified true copy (CTC) of the TCT/CLOA from the ROD.
Locate the registration/inscription date and the entry number of the CLOA and of the 10-year annotation.
Compute 10 years from that registration date.
If inside 10 years:
- Only hereditary succession or DAR-channeled transfers (Gov’t/LBP/qualified ARB) are viable.
- Any private sale/lease/mortgage is presumptively void unless under DAR-approved AVA or similar scheme.
If outside 10 years:
- Confirm full payment; secure DAR/LBP clearances; comply with ROD documentary requirements (tax clearances, IDs, SPA, marital consents, etc.).
- If contemplating non-agricultural use, initiate conversion clearance first.
Advise buyers: No “good faith” shield against an on-title, in-your-face restriction.

Frequently asked clarifications

Q: The CLOA says “Issued” in 2014 but “Registered” in 2017. Which date starts the 10 years? A: 2017, the registration date.

Q: Can the beneficiary sell to a private person in year 9 if the buyer is an ARB? A: Only through DAR and subject to qualification and clearances. Private deed-of-sale directly to the ARB without DAR process is risky.

Q: We found a mortgage to a private bank in year 3. Valid? A: Generally invalid absent a specific DAR/LBP-sanctioned facility. Expect cancellation exposure.

Q: The 10 years have lapsed, but amortizations aren’t fully paid. Can we transfer now? A: Usually no. Settle the Land Bank lien and obtain DAR/LBP clearances first.

Q: Heirs want to divide during the 10-year period. Allowed? A: Hereditary succession is allowed at any time, but heirs assume the cultivation and payment obligations and should process the succession transfer with DAR/ROD.

Common pitfalls

Counting from the wrong date (award ceremony or signature date instead of registration).
Assuming lease is harmless. Unapproved “aryendo” arrangements can lead to disqualification.
Thinking the 10-year lapse is the only hurdle. Liens, clearances, conversion rules may still block the deal.
Reset myth. New/duplicate titles or parcelization do not restart the 10-year clock.

Final notes

This article explains the general rule and practice around the reckoning of the 10-year restriction for CLOA titles: count from registration.
Specific facts and local ROD/DAR practices can affect outcomes. For transactions or disputes, work with counsel and coordinate with DAR, Land Bank, and the ROD early.

This is general information, not legal advice.