The Comprehensive Agrarian Reform Program (CARP), established by Republic Act No. 6657, is a landmark piece of social legislation in the Philippines. It seeks to redistribute agricultural lands to landless farmers and farmworkers to achieve social justice and rural development.
Because the ultimate goal is to empower the tiller, the law imposes strict limitations on how these lands can be leased or transferred. Violating these rules can lead to the cancellation of the Certificate of Land Ownership Award (CLOA) or the Emancipation Patent (EP).
1. The Proscription Period (10-Year Rule)
The most fundamental rule regarding lands acquired through CARP is the prohibition of transfer for a period of ten (10) years.
- Timeline: This period begins from the date of the issuance or registration of the title (EP or CLOA).
- General Rule: During this decade, the agrarian reform beneficiary (ARB) cannot sell, transfer, or convey the land to any private individual.
- Exceptions: Even within this 10-year window, transfers are allowed only in three specific instances:
- Through hereditary succession (transfer to heirs upon death).
- Transfer back to the Government (Department of Agrarian Reform).
- Transfer to the Land Bank of the Philippines (LBP).
2. Legal Transfer After the 10-Year Period
Once the 10-year period has lapsed, a beneficiary may transfer the land, but it is not a "free-for-all" market transaction. Specific conditions must be met:
- DAR Clearance: Any sale or transfer requires a formal Clearance from the Department of Agrarian Reform. Without this, the Register of Deeds will generally not process the title transfer.
- Landholding Limit: The buyer or transferee must be qualified to own agricultural land. Under Philippine law, no person may own more than five (5) hectares of agricultural land.
- Proof of Payment: The ARB must have fully paid the amortizations to the Land Bank of the Philippines before the land can be freely alienated to third parties.
3. Leasing Agrarian Reform Lands
Leasing land under CARP is often a grey area that requires careful navigation of DAR Administrative Orders.
- The Tiller Principle: The spirit of the law is that the beneficiary should be the one cultivating the land. Long-term leases that effectively divest the farmer of control are generally discouraged.
- Agribusiness Venture Arrangements (AVAs): In certain cases, particularly for high-value crops, ARBs are allowed to enter into leasehold agreements with corporations or cooperatives. These are strictly monitored by the DAR to ensure the farmer is not being exploited and remains the primary beneficiary of the land’s productivity.
- Prohibited Acts: Sub-leasing or entering into "hidden" lease agreements (where the farmer becomes a mere employee on their own land) can be grounds for forfeiture of the land award.
4. Consequences of Illegal Transfers
Entering into a "sale" via a "Waiver of Rights" or a "Deed of Absolute Sale" during the prohibited period is considered a null and void contract.
| Action | Legal Consequence |
|---|---|
| Sale within 10 years | Void ab initio; the land reverts to the state for reallocation. |
| Leasing without DAR approval | Potential cancellation of the CLOA/EP. |
| Exceeding 5-hectare limit | The transfer will be denied; the buyer may face administrative sanctions. |
5. Conversion vs. Transfer
It is important to distinguish between transferring the land and converting it.
- Transfer involves changing the owner.
- Conversion involves changing the use of the land (e.g., from agricultural to residential or industrial).
An ARB cannot simply stop farming and sell the land for a housing subdivision. Conversion requires a separate, rigorous process through the DAR to prove that the land is no longer "economically feasible" for agriculture or that the locality has shifted into a dominant non-agricultural use.
6. The Role of the Provincial Agrarian Reform Adjudicator (PARAD)
Disputes regarding the legality of a lease or a transfer are handled by the DAR Adjudication Board (DARAB) through its local adjudicators. If a transfer is found to be in violation of RA 6657, the PARAD has the authority to order the snacks of the title and the eviction of the illegal occupant.