August 6, 1996
DAR ADMINISTRATIVE ORDER NO. 02-96
SUBJECT : REVISED RULES AND PROCEDURES GOVERNING THE ACQUISITION OF AGRICULTURAL LANDS SUBJECT OF VOLUNTARY OFFER TO SELL AND COMPULSORY ACQUISITION PURSUANT TO REPUBLIC ACT NO. 6657
I. PREFATORY STATEMENT
In compliance with the Supreme Court Resolution dated 05 July 1996 in the cases of Land Bank of the Philippines (LBP) versus Court of Appeals (CA), Pedro L. Yap, et al., (G.R. No. 118712) and Department of Agrarian Reform (DAR) versus CA, Pedro L. Yap, et al., (G.R. No. 118745), the following rules and procedures are hereby promulgated. CaSHAc
II. COVERAGE
These Rules shall cover Voluntary Offer to Sell (VOS) and Compulsory Acquisition (CA) transactions involving lands enumerated under Section 7 of RA 6657, and those acquired under Executive Order No. 407 dated June 14, 1990, as amended.
A. Voluntary Offer to Sell (VOS)
All private agricultural lands voluntarily offered by landowners for sale to the government.
B. Compulsory Acquisition (CA)
All idle and/or abandoned agricultural lands regardless of size.
All other private agricultural lands falling under the coverage of the Compulsory Acquisition mode according to the schedule and priorities defined in Section 7 of RA 6657.
C. E.O. 407 Acquisition
All other agricultural lands transferred to the DAR pursuant to Executive Order No. 407 dated June 14, 1990, as amended.
III. POLICY
A. All landowners (LO) whose lands are subject for coverage under RA 6657 may voluntarily offer their lands for sale to the government. However, lands for which notices of coverage have already been sent by the government and received by the landowner shall no longer be considered as voluntarily offered lands.
B. If the land is tenanted, the ARBs shall continue to pay lease rentals based on existing guidelines on leasehold operations until such time that the landowner signs the Deed of Transfer, or the LBP deposits the compensation proceeds in the name of the landowner, as the case may be. In case there is any standing crop on the land at the time of acquisition, the landowner shall retain his share of the harvest thereof pursuant to Section 28 of RA 6657 and other related laws.
C. The compensation for the land shall be the amount agreed upon by the DAR, LBP and the landowner in accordance with the criteria provided for in Section 17 and 18, and other pertinent provisions of RA 6657 and existing guidelines, or the value set under summary administrative proceedings conducted by DAR pursuant to Section 16(d) of RA 6657 and the DAR Adjudication Board Revised Rules of Procedures, or as may be finally determined by a competent court.
D. Landowners, other than banks and financial institutions, who voluntarily offer their lands for sale shall be entitled to an additional five percent (5%) cash payment pursuant to Section 19 of RA 6657. AaDSTH
IV. OPERATING PROCEDURES
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Steps Responsible Activity Forms/Documents
Agency/Unit (Requirements)
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A. Identification and Documentation
For VOS only
1 LO Files Letter Offer together CARP Form No. 1
DARMO with the basic ownership (Letter Offer)
documents in any DAR Certified copy of
office. The DAR office OCT/TCT
which received the afore- Certified copy of
said documents forwards Tax Declaration
same to DAR Municipal Copy of the approved
Office where the subject survey plan of
property is located property
1.a DARMO Receives and reviews Refer to List of
duly accomplished Documents
CARP Form No. 1 Required Pursuant
with the attached to RA 6657 under
documents, gather Different Situations
documents required (Annex "A")
as maybe applicable to
a particular situation.
1.b DARMO Acknowledges receipt
of documents, advises
LO on specific procedures
and to submit additional
documents, if any, to
include the surrender of
the owner's duplicate
certificate of title to LBP
as a requirement for
payment; prepares corres-
ponding claim folder
(CF) of LO
For CA only
1. DARMO Gathers all appropriate Same as above
documents similar to
those enumerated under
VOS and prepares corres-
ponding CF of LO.
For EO 407 covered lands
1 LO Executes DOT in favor Owner's duplicate
of RP and surrenders to copy of title Tax
DAR all appropriate Declaration and
documents. other necessary
documents to effect
the transfer of
ownership
1.a DARPO Forwards duly executed Duly executed DOT
DOT and appropriate Approved subdivision
documents to ROD for or segregation plan
registration of same and (ASP) with technical
requests for the issuance descriptions
of title in the name of RP.
1.b ROD Registers DOT and issues
TCT in the name of RP and
forwards owner's duplicate
certificate of title to PARO.
1.c DARPO Proceeds with the
distribution of land.
For VOS, CA and EO 407
2 DARMO Provides LBP thru PARO The list should
list of landholdings contain the ff:
together with the certified - Name of LO
copy of the title, tax - Title/TD No.
declaration and approved - Area
survey plan or sketch - Location
plan of the property for
scheduling of the ocular
inspection.
3 DARMO Sends Notice to BARC, CARP Form No. 2
DENR, DA, LBP and (Notice to Conduct
prospective ARBs on Field Investigation)
the schedule of the field
investigation at least CARP Form No. 2.a
two weeks in advance. (Invitation Letter to
Invites the LO to join LO for the Field
the field investigation, Investigation)
to select his retention
area and to submit his
Statement of Production
and Income. If LO cannot be
contacted, notice shall be
published in a newspaper
of national circulation.
4 DARMO Conducts joint field
investigation of the SAHIDc
property with LBP,
DENR, DA, LO, BARC
and prospective ARBs.
5 DARMO Prepares FIR and Land CARP Form No. 3
Use Map jointly with (Field Investigation
LBP and BARC. Report)
6 DARMO Screens/selects qualified CARP Form No. 4
ARBs and causes the (Application to
signing of the APFUs. Purchase and
Farmer's Under-
taking)
7 DARMO Sends LO the Notice of CARP Form No. 5
Coverage together with (Notice of Coverage)
a copy of the FIR by
personal delivery with
proof of service or by
registered mail with
return card.
8 DARMO Posts a copy of the CARP Form No. 6
Notice of Coverage for (Certification of
seven (7) working days Posting Compliance)
in the bulletin board of
the barangay and muni-
cipal halls where the
property is located and
issues Certification of
Posting Compliance.
9 DARMO Forwards claim folder CARP Form No. 7
to PARO. (CF Transmittal
Memorandum)
B. Review and Completion of
Data/Documents
10 DARPO Receives claim folder
and forwards to the DAR-
LBP Pre-Processing Unit
(PPU) for review/evaluation
of documents. Gathers
lacking documents, if any.
C. Land Survey
11 DARPO Expedites survey Approved subdivision
activities and ensures or segregation plan
that segregation/sub- (ASP) with survey
division survey returns technical descriptions
are completed and
approved by the DENR-
LMS pursuant to existing
guidelines. AIHDcC
12 DAR-LBP-PPU Forwards CF to LBP- CARP Form No. 8
LVLCO together with (Memorandum
the ASP, if applicable. Request to Value the Land)
D. Land Valuation and
Compensation
13 LBP-LVLCO Receives and evaluates
the CF for completeness,
consistency and document
sufficiency. Gathers
additional valuation
documents.
14 LBP-LVLCO Determines land Claims Valuation
valuation based on and Processing
valuation inputs Form (CVPF)
Note: CFs where the
land valuation amounts
to more than P3 million
shall be forwarded to
LBP-HO.
15 LBP-LVLCO Prepares and send CARP Form No. 9
Memo of Valuation, (Memorandum of
Claim Folder Profile Valuation and Claim
and Valuation Summary Folder Profile and
(MOV-CFPVS) to PARO. Valuation Summary)
16 DARPO Receives LBP's MOV-
CFPVS and ascertains the
completeness of the data
and information therein.
17 DARPO Sends Notice of Land CARP Form No. 10
Valuation and Acquisition (Notice of Land
to LO by personal Valuation and
delivery with proof of Acquisition)
service or by registered
mail with return card,
attaching copy of MOV-
CFPVS and inviting LO's
attention to the submission
of documents required for
payment of claim.
18 DARPO Posts a copy of the Notice CARP Form No.11
of Land Valuation and (Certification of
Acquisition (NLVA) for at Posting Compliance)
least seven (7) working
days on the bulletin board
of the provincial capitol,
municipal and barangay
halls where the property
is located and issues a
Certification of Posting
Compliance.
19 LO Replies to Notice of Land CARP Form No. 10.a
Valuation and Acquisition (LO's Reply to
and submits documents NLVA)
required for payment of
compensation claim.
If LO accepts, proceed to D.1
If LO rejects or fails to
reply, proceed to D.2.
D.1 Where LO accepts the
Land Valuation
20 DARPO Upon receipt of LO's CARP Form No. 12
Letter of Acceptance, (Request to Pay)
sends Memorandum to
LBP to prepare the Deed
of Transfer and to Pay
the LO.
21 LBP-LVLCO Prepares DOT for LO CARP Form No. 13
LBP-HO to execute and deposits (Deed of Transfer)
the compensation
proceeds in the name of
LO in cash and in bonds.
The entire deposit may be
withdrawn by the LO; how-
ever, the actual release
of same shall only be
effected upon LO's
submission of all docu-
mentary requirements.
22 LO Executes DOT and CARP Form No. 13
submits payment (Deed of Transfer)
requirements to LBP
within seven (7) working
days.
Should the LO fail to CARP Form No. 16
submit the required (Notice of LO's Non-
documents within seven Compliance with
(7) working days from Requirements)
LBP receipt of the DAR
Request to Pay, notifies CARP Form No. 17
DAR of such failure by (Certificate of
LO and also issues to Payment) caTIDE
DAR the Certification of
Deposit.
Thereafter, the DAR shall CARP Form No. 18
request ROD to transfer (Request to Issue
the Certificate of Title TCT in the Name of
covering subject property RP)
in favor of the RP.
23 LBP-LVLCO Forwards DOT together CARP Form No. 13
LBP-HO with the owner's duplicate (Deed of Transfer)
certificate of title and ASP Certified copy of
(if applicable) to ROD for ASP and its tech-
registration. nical description
approved by DENR,
if property is partially
covered by CARP
24 ROD Registers DOT and issues
TCT in the name of RP,
then forwards owner's
duplicate certificate of
title to LBP.
25 LBP-LVLCO Prepares Payment LBP Payment
Release Form upon LO's Release Form
compliance with all the
requirements for payment.
In case the land is encum-
bered, pays the mortgagee-
bank/creditor upon LO's
request and pays the
balance of the proceeds
to the LO.
26 LBP-LVLCO Surrenders the owner's Owner's duplicate
LBP-HO duplicate certificate of certificate of title (RP)
title (RP) to PARO which
will in turn transmit said
copy to ROD to enable
CLOA registration.
D.2 Where LO rejects the
Land Valuation
20 DARPO If the LO rejects the CARP Form No. 10.a
offered price or fails to (LO's Reply to
reply within thirty (30) NLVA)
days from receipt of
the Notice of Land CARP Form No. 15
Valuation and Acquisi- (Request to Deposit)
tion forwards to LBP the
Request to Deposit the
compensation proceeds
in cash and in bonds in
the name of the LO.
21 DARPO Requests the DARAB/ CARP Form No. 14
RARAD/PARAD to (Advice to DARAB/
conduct administrative RARAD/PARAD)
proceedings pursuant to
DARAB guidelines, as the
case maybe, furnishing
therein a copy each of the
LO's Letter of Rejection,
Notice of Land Valuation
and Acquisition and LBP's
Memorandum of Valuation.
22 LBP-LVO Deposits the compen- CARP Form No. 17
LBP-HO sation proceeds in the (Certification of
name of LO and issues Deposit)
Certification of Deposit
to DAR through the
PARO, copy furnished
the LO.
The entire deposit may CARP Form No. 17.a
be withdrawn by the LO; (Confirmation of
however, actual release Coverage and
of same shall be subject Transfer For
to LO's submission of Claims of Individual
all requirements for LOs - Still pending
payment and execution with DARAB)
of Confirmation of
Coverage and Transfer. CARP Form No. 17.b
(Confirmation of
Coverage and
Transfer for Claims
of Corporate LOs -
Still pending with
DARAB) TDCcAE
23 DARPO Upon receipt of the CARP Form No. 18
Certification of Deposit (Request to Issue
from LBP, transmits TCT in the Name of
the same to the Register RP)
of Deeds concerned,
including the approved
segregation/subdivision
plan of subject property,
if partially covered and
simultaneously requests
the ROD to issue TCT in
the name of RP.
24 ROD Issues new TCT in the New TCT in the
name of RP and forwards name of RP and
owner's duplicate certi- owner's duplicate
ficate of title in the name copy of title in the
of RP to LBP-LVO which name of RP
furnishes the PARO a
certified xerox copy of the
same.
25 DARAB/ Simultaneously with Activity
RARAD/ Nos. 22-24 above, the DARAB/
PARAD RARAD/PARAD conducts
summary administrative
proceedings; renders decision
and informs parties concerned
of the same.
26 DARPO Upon receipt of the CARP Form No. 17.c
Certificate of Finality (Confirmation of
of the DARAB Order, Coverage and
requests LBP to pay Transfer for Claims
the LO in accordance of Individual LOs -
with the DARAB Already decided
decision; requests LBP by DARAB)
to prepare Confirmation
of Coverage and CARP Form No. 17.d
Transfer for LO to (Confirmation of
accomplish. Thereafter, Coverage and
LBP follows Activity Transfer for Claims
Nos. 25-26 under D.1. of Corporate LOs -
In case the LO still Already decided
rejects DARAB decision, by DARAB)
he may go to the Special
Agrarian Court (SAC) for
the final determination of
just compensation.
E. Land Distribution
27 DARPO Forwards to DARMO Certified copy of
the certified copy of the TCT in the name
TCT in the name of RP of RP
with the instruction to
take over physical
possession of the land
and proceed with the
distribution of the same
in favor of qualified ARBs.
V. REPORTING AND MONITORING
For monitoring and evaluation purposes, a provincial monthly report on the status of VOS/CA transactions shall be submitted to the Office of the Undersecretary for Field Operations through the Regional Office, copy furnished BLAD. All landowners concerned shall be periodically advised on the status of their claims. IDCScA
VI. TRANSITORY PROVISIONS
All trust accounts issued pursuant to Administrative Order No. 1, S. 1993, covering landholdings not yet transferred in the name of the Republic of the Philippines as of July 5, 1996 shall immediately be converted to deposit accounts in the name of the landowners concerned.
All Provincial Agrarian Reform Officers and Regional Directors are directed to immediately inventory the claim folders referred to in the preceding paragraph, wherever they may be found and request the LBP to establish the requisite deposit under this Administrative Order and to issue a new certification to that effect. The original Certificate of Trust Deposit previously issued should be attached to the request of the DAR in order that the same may be replaced with a new one.
All previously established Trust Deposits which served as the basis for the transfer of the landowner's title to the Republic of the Philippines shall likewise be converted to deposits in cash and in bonds. The Bureau of Land Acquisition and Distribution shall coordinate with the LBP for this purpose.
VII. REPEALING CLAUSE
All Orders, Circulars and other issuances inconsistent herewith are deemed repealed, amended and/or modified accordingly.
VIII. EFFECTIVITY
This Order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation pursuant to Section 49 of RA 6657. ESITcH
Adopted: 06 Aug. 1996
(SGD.) ERNESTO D. GARILAO
Secretary