November 20, 2012

JOINT DAR-LRA MEMORANDUM CIRCULAR NO. 09-12

TO                :     All Concerned Officials and Personnel of the Department of Agrarian Reform (DAR) and Land Registration Authority (LRA)/Register of Deeds (RODs)

SUBJECT    :     Clarificatory Guidelines in the Documentation and Registration of Certain Land Transactions under the Comprehensive Agrarian Reform Program

I.          PREFATORY STATEMENT

Section 78 of DAR Administrative Order No. 07, series of 2011 on the "Revised Rules and Procedures Governing the Acquisition and Distribution of Private Agricultural Lands under Republic Act (RA) No. 6657, as Amended" provides that:

. . . "The LBP shall issue to the PARO a COD upon its receipt of the Order to Deposit Landowner's Compensation. Within ten (10) days from the PARO's receipt from the LBP of a copy of the COD, he/she shall immediately transmit the COD, together with a copy of the ASP and a written request for the issuance of a TCT in the name of the Republic of the Philippines (RP Title), to the ROD."

Furthermore, Section 106 of same AO provides that:

"It is the ministerial duty of the ROD to:

1.         Issue the title of the land in the name of the Republic of the Philippines, after the LBP has certified that the claim proceeds have been deposited in the name of the LO constituting full payment in cash and bonds, with due notice to the LO;

2.         Register the CLOA generated by DAR;

3.         Cancel previous titles pertaining thereto; and

4.         Issue title for the LO's retained area and other non-CARPable areas."

In connection with the implementation of the CARP pursuant to RA 6657, as amended by RA 9700, the DAR, LRA and its Registers of Deeds (RODs) are closely collaborating with each other in the preparation and registration of CARP-related documents, deeds and other instruments. LRA is now implementing and using the Philippine Land Registration and Information System (PHILARIS) for the electronic registration of titles and deeds involving the CARP under the Joint DAR-LRA Memorandum Circular No. 03, Series of 2012.

II.        POLICY STATEMENTS

1.         CARP implementation is an exercise of both police power and eminent domain of the State. Compliance of all landowners whose lands are covered by CARP is mandated by law.

2.         Land acquisition is implemented through the following modes: Compulsory Acquisition (CA), Voluntary Offer to Sell (VOS) and Voluntary Land Transfer (VLT). Under RA 9700, VLT applications submitted as of June 30, 2009 and with Certificate of Landownership Award (CLOA) issued and registered by the ROD as of June 30, 2012 shall be allowed. Tenanted rice and corn lands covered under Operation Land Transfer (OLT) pursuant to PD 27/EO 228 provided under Phase 1 of RA 9700 shall be documented and processed pursuant to this JMC in the generation and registration of Emancipation Patents (EPs).

3.         In the claim folder documentation, the DAR has prescribed the same documentary requirements for CA or VOS, the difference lies with the sending of a Notice of Coverage (NOC) for CA, while an Acceptance Letter is sent to the landowner (LO)-offeror by the PARO for a duly accepted letter-offer. The acceptance letter is tantamount to an NOC, in case the LO-offeror fails to comply with the documentary requirements. An additional cash payment of five percent (5%) is given to LO under VOS scheme.

4.         In case of rejection of the value initially determined by the LBP whether under CA, VOS, or OLT, a summary administrative proceeding is conducted by the DAR Adjudication Board (DARAB), with the value initially determined by LBP deposited in the account of the LO concerned.

5.         The LBP upon receipt of the PARO's Order to Deposit LO's compensation, issues a Certification of Deposit (COD), which is transmitted by the PARO to the Register of Deeds (ROD) with a request to issue a TCT in the name of the Republic of the Philippines (RP) or CLOA/EP in favor of the ARBs. The surrender of the LO's Owners' Duplicate Copy (ODC) is dispensed with considering the exercise of police power and eminent domain of the CARP regardless of whether the mode of acquisition is CA or VOS.

6.         The LBP shall release the LO compensation upon surrender of the ODC of title and other muniments of title.

III.       OPERATING PROCEDURES

This Joint Memorandum Circular is issued to guide and provide all concerned personnel of the DAR, LRA and its RODS uniform and clear procedures and requirements in the documentation and registration of the following:

IV.       APPLICABILITY

This JMC shall apply to all CARP transactions submitted to and to be submitted to the ROD relative to the acquisition and distribution of titled or untitled private agricultural lands, under OLT, CA or VOS by landowners, government financing institutions (GFI), corporations or partnerships, whether the land compensation is accepted or rejected.

This JMC hereby amends all issuances inconsistent herewith.

Please be guided accordingly.

Diliman, Quezon City, November 20, 2012.

(SGD.) VIRGILIO R. DELOS REYES
Secretary
Department of Agrarian Reform

(SGD.) EULALIO C. DIAZ III
Administrator
Land Registration Authority