Transfer of Possession Under Agrarian Reform Law Before CLOA Issuance (Philippine legal perspective)
1. Overview
Under the Comprehensive Agrarian Reform Program (CARP) established by Republic Act (RA) No. 6657 (as amended by RA 9700), land redistribution follows two distinct moments:
- Possessory transfer – the State, through the Department of Agrarian Reform (DAR), physically takes control of the land and installs the qualified agrarian reform beneficiaries (ARBs).
- Transfer of ownership – perfected only when the Certificate of Land Ownership Award (CLOA) is titled and registered in the Registry of Deeds (ROD).
Because CLOA generation and registration can take many months, the law and DAR regulations allow an earlier transfer of possession so that farmers may begin cultivating while the documentary work continues. Below is a systematic guide to every doctrine, rule, and practice governing that interim stage.
2. Constitutional & Statutory Foundations
| Source | Key Text |
|---|---|
| 1987 Constitution, Art. XIII, §4 | The State “shall undertake… agrarian reform… to enable farmers to own directly or collectively the lands they till…” |
| RA 6657, §16(e) | “Upon the deposit… of compensation… the DAR shall take immediate possession of the land and request the proper court for the issuance of a writ of possession…” |
| RA 6657, §24 | Ownership is vested in the ARB “upon the issuance of a CLOA and its registration with the ROD.” |
| RA 6657, §73(a) | It is an offense to “interfere with, restrain, or coerce” ARBs in their peaceful possession. |
3. DAR Administrative Issuances on Early Possession
| DAR Issuance | Salient Points on Possession Prior to CLOA |
|---|---|
| AO No. 2‑1994 (Individual LTs before CLOA) | Allows field personnel to identify and install one ARB per lot even while survey, valuation, and CLOA generation are unfinished. |
| AO No. 5‑2000 (Installation of Beneficiaries) | Details the Writ of Installation procedure: MARO/OIC issues notice, landowner is invited; if resisted, DAR can request police/sheriff assistance. |
| AO No. 7‑2011 (Revised Rules on LAD) | Re‑affirms that deposit of compensation + transfer of title to the Republic triggers DAR’s right to “take over physical possession and exercise full control pending CLOA issuance.” |
| Memorandum Circulars (various) | Provide operational templates for Entry and Occupancy Reports, custody of harvestable crops, and “caretaker agreements” when immediate cultivation cannot occur. |
4. Procedural Chronology
Notice of Coverage (NOC) served on landowner.
Field Investigation & PARCCOM2 concurrence – confirm coverable area and identify potential ARBs.
Land Valuation & Deposit
- Land Bank of the Philippines (LBP) issues Memorandum of Valuation (MOV).
- DAR orders LBP to deposit just compensation in the landowner’s name.
Title Transfer to the Republic
- Owner’s OCT/TCT is cancelled; new “TCT in the name of the Republic (DAR)” is issued.
Writ of Possession / Writ of Installation (often administrative, but may seek ex‑parte order from the Special Agrarian Court when there is resistance).
- Police or sheriff assistance is legally mandatory if obstruction occurs.
Physical Installation of ARBs
- Signing of Certificate of Acceptance of Physical Possession.
- Delineation of lot corners on the ground.
- Joint inventory of standing crops & improvements (basis for crop‑sharing or reimbursement).
CLOA Generation & Registration (back‑office)
- Parcelization survey, geodetic approval, printing of CLOAs.
- ROD registration—this perfects ownership.
- Distribution of owner’s duplicate CLOA to each beneficiary.
5. Legal Effects of Early Possession
| Aspect | Rule |
|---|---|
| Nature of right | ARBs hold usufructuary/possessory rights; ownership is inchoate but protected by police power. |
| Landowner’s remedies | May (a) withdraw deposited compensation; (b) contest valuation before DARAB/SAC without staying turnover of possession. |
| Standing crops | If planted before Notice of Acquisition, landowner may harvest; if after, 70‑30 sharing in favor of ARB or as per AO 5‑2000. |
| Improvements & homelot | Landowner retains homelot/5 ha retention area; compensation for durable improvements fixed by DAR‑LBP guidelines. |
| Criminal interference | Unlawful ejectment, intimidation, or destruction of crops punishable under §73(a) RA 6657 (prision correccional + fine). |
| Succession & transfers | Possessory rights are inheritable but cannot be sold, mortgaged, or leased, mirroring the 10‑year prohibition that starts to run only after CLOA registration. |
6. Jurisprudence
| Case | G.R. No. / Date | Doctrine on Possession |
|---|---|---|
| Association of Small Landowners v. DAR | 78742, 14 Jul 1989 | Deposit of compensation vests right to take possession even before transfer of ownership instruments are complete. |
| DAR v. Aboganda | 158896, 23 Jan 2013 | DAR’s administrative writ of installation is sufficient; judicial writ is only ancillary when there is violent resistance. |
| Land Bank v. Honeycomb Farms | 169903, 11 Oct 2011 | Landowner’s valuation appeal does not restrain DAR from installing ARBs. |
| Heirs of Malate v. Gochangco | 160170, 13 Oct 2009 | Illegal lease‑back agreements with former landowner after possession transfer are void; ARBs’ tenure protected. |
| People v. Dawang | 169663, 10 Jun 2013 | Conviction under §73(a) for bulldozing ARBs’ crops—actual CLOA not required to prosecute obstruction. |
7. Operational Challenges & Best Practices
| Challenge | DAR / Stakeholder Response |
|---|---|
| Survey delays | Use Sketch Map for Installation to mark provisional lot boundaries. |
| Double claims & fake ARBs | Conduct a Final Masterlist Posting in barangay hall; allow 15‑day protest period before installation day. |
| Harassment / “rent‑a‑goon” tactics | Create Quick Reaction Teams (Joint DAR‑PNP‑LGU). |
| Crop diversion by outgoing owner | Issue Cease‑and‑Desist Order; move for contempt if defied. |
| Overlap with ancestral domain | Coordinate with NCIP; suspend installation pending delineation if CADT claim is prima facie valid. |
| Subsequent land use conversion petitions | Conversion cannot be entertained after possession has been transferred and ARBs installed, save for very limited “highly exceptional” circumstances under AO 1‑2002. |
8. Practical Tips for Field Implementers
- Lock‑in valuation and deposit first; possession without deposit is ultra vires.
- Issue all notices in writing and post them conspicuously; undocumented verbal notices will doom an installation if challenged.
- During installation, secure a geo‑tagged photo log and barangay witnesses; these are decisive evidence in obstruction cases.
- Segregate the landowner’s retention on‑site whenever feasible to minimize conflict.
- For standing improvement structures (e.g., poultry houses), inventory and resolve payment before allowing ARBs full access.
9. Conclusion
The Philippine agrarian framework deliberately separates possession from ownership to avoid paralysing farmers during bureaucratic processing of titles. By allowing DAR to install beneficiaries immediately after just compensation is deposited—but before CLOA registration—the law fulfills its social‑justice mandate without abandoning due process and the landowner’s property rights.
A nuanced grasp of the statutory text, DAR regulations, and case law ensures that implementers balance speed, fairness, and the peaceable transfer of rural lands—precisely the equilibrium the Constitution envisioned.
Abbreviations
- ARB – Agrarian Reform Beneficiary
- CARP/CARPER – Comprehensive Agrarian Reform Program / Extension with Reforms
- CLOA – Certificate of Land Ownership Award
- DAR/DARAB – Department of Agrarian Reform / DAR Adjudication Board
- LBP – Land Bank of the Philippines
- LAD – Land Acquisition and Distribution
- MARO/PARO/RARO – Municipal/Provincial/Regional Agrarian Reform Officer
- NOC – Notice of Coverage
- PNP – Philippine National Police
- ROD – Registry of Deeds
(Prepared July 22, 2025)