Ao 6 and 7, Series of 2011 Dar

September 21, 2011

qualifica qualif icatio tions ns of thi thiss act act,, the pro proper perty ty reg regist istrat ration ion decree, and other pertinent laws."

DAR ADMINISTRATIVE ORDER NO. 06-11 SUBJECT : The 2011 Revised Rules and   Procedures Governing Governing the Cancellation Cancellation of  of  Registered   Registered   Emancipation  Emancip ation Patents Patents (EPs), Certificates of  of   Landownership,  Landow nership, Award Award (CLOAs), (CLOAs), and Other Other Titles  Issued Under Under any Agrarian Agrarian Reform Program PREFATORY STATEMENT Republic Act (R.A.) No. 6657, 6657 , as amended by R.A. No. 9700, Exe Execut cutiv ivee Ord Order er (E. (E.O.) O.) No No.. 22 229 9, Presidential Decree Dec ree (P. (P.D.) D.) No No.. 27 27,, E.O E.O.. No. 228, 228, an and d R.A R.A.. No No.. 3844 as amended by R.A. No. 6389, and other agrarian laws la ws pr pres escr crib ibee th thee ma mann nner er of ac acqu quis isit itio ion, n, re re-distribution, and award of agricultural lands to qualified farmer-benef farmer -beneficiari iciaries es with corr correspon esponding ding righ rights ts and obli ob liga gati tion ons. s. Th Thee aw awar ards ds of la land nd to qu qual alif ifie ied d  beneficiaries are evidenced by Emancipation Patents (EPs), Certificates of Landownership Award (CLOAs), and other titles. The titles generated and dist distribut ributed ed purs pursuant uant to the agrarian reform program form an integral part of the  property registration system, and enjoy the same degree of importance and weight accorded to titles issued and registered under the Torrens System. Mindful that the EPs, CLOAs, and other titles issued underr any agrarian unde agrarian refor reform m pro program gram possess the same degree degr ee of indefeasibilit indefeasibility y as the land title titless unde underr the  property registration decree once brought under the operation of the Torrens System, any action intending to question the efficacy or diminish the import of said land la nd ti titl tles es mu must st be al allo lowed wed on only ly th thro roug ugh h di dire rect ct  proceedings, while strictly observing the manner  hereunder prescribed and subject only to grounds herein specified. This is bolstered by Section 24 of R.A. of  R.A. No. 6657, as amended, amended , which states, ". . . the emancipation  patents, the certificates of land ownership award, and other titles issued under any agrarian reform program shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of the Registry of Deeds subj subject ect to the con conditio ditions, ns, limi limitatio tations ns and

Moreover, the Department of Agrarian Reform (DAR) Secretary has the exclusive and original jurisdiction on cases for cancellation of the aforesaid titles. Section 24 of R.A of  R.A.. No No.. 66 6657, 57, as ame amend nded ed,, sta states tes:: "Al "Alll cas cases es involvin inv olving g the canc cancellatio ellation n of regis registered tered emanc emancipatio ipation n  patents, certificates of land ownership award, and other  titles titl es issu issued ed und under er any agrarian reform program are within with in the exclusive and orig original inal jurisdiction jurisdiction of the Secretary of the DAR". Considering, however, that the  proximity to the subject landholding landholding of the Adjudicators of the DAR Ad Adjud judica icatio tion n Boa Board rd (DA (DARAB RAB), ), whi which ch  previously had jurisdiction to resolve cancellation cases, are closer than that of the Secretary, they are now tasked to undertake the case build up therefor, but not to resolve resol ve them, to ensure that due process is prop properly erly accorded to the parties involved. This amendatory Administrative Order is accordingly issued to hig issued highli hlight ght the ind indefea efeasib sibili ility ty of th thee EP EPs, s, CLOAs, CLOA s, and other titl titles es dist distribu ributed ted unde underr agrar agrarian ian reform ref orm,, emp emphas hasize ize du duee pro proces cesss in the can cancell cellati ation on  proceedings, streamline the cancellation process before the DAR Secretary, protect the interest of the farmer   beneficiaries, and improve the access to justice of  farmers before the DAR. ARTICLE I General Provisions

SECTION 1. Coverage. — These rules of proc SECTION procedure edure ("Ru (" Rule les" s")) sh shal alll ap appl ply y to al alll ca cases ses in invo volv lvin ing g th thee involuntary cancellation of registered EPs, CLOAs, and other ot her ti title tless iss issued ued by th thee DAR un under der an any y agr agrari arian an reform program. SECTION 2. Statemen Statementt of Policies. — The cancellation of EPs, CLOAs, and other titles issued by the DAR   pursuant to agrarian reform laws shall be governed by the following policies: (a) The State recognizes the indefeasibility of EPs, CLOAs, and other titles issued under any agrarian reform program; and

(b) Cancellation of registered EPs, CLOAs, and other titles issued under any agrarian reform program shall be strictly regulated and may be allowed only in the manner and conditions prescribed hereunder. SECTION 3.  Definiti  Definition on of Terms. — For purposes of  these Rules, the following terms are defined as follows: (a)  Agrarian Law Implementatio Implementation n (ALI) Case Case — is an administrative matter involving disputes or  controversies such as the identification of beneficiaries, exemption from coverage, and the like, in the implementation of agrarian reform laws which falls under the exclusive jurisdiction of the DAR Secretary or his/her authorized representative and the Regional Director. This shall also include ALI cases covered by special Administrative Orders (A.O.s) such as, but not limited to, cases for exemption or exclusion from coverage. (b)  Agrarian  Agraria n Reform Beneficiary Beneficiary — refers to farmers who were granted lands under P.D. under  P.D. No. 27 and R.A.  No. 6657, as amended, amended, and regular farmworkers who are landless, irrespective of tenurial arrangement, who  benefited from the redistribution of lands, lands, as evidenced  by an EP or a CLOA. (c) Cancellation — refers to the process of  annulling, invalidating, and revoking the EPs, CLOAs, or other titles issued under any agrarian reform  program. It does not include the correction of entries entries in the said EPs, CLOAs, or other titles as the same falls under the jurisdiction of the DARAB, wherein correction therein is defined as the process of correcting or changing clerical or typographical errors ( i.e. i.e.,, wrong spelling, age, etc.) in the EPs, CLOAs, or titles issued under any agrarian reform program without affecting substantial rights of other interested persons. (d) Case Control Number — Number  — refers to the number  assigned by the clerk of the Provincial Agrarian Reform Adjudicator (PARAD) to the petition for cancellation received by it for monitoring purposes and for the determination of case folders actually transmitted by the PARAD, which number shall be substantially adopted up to the Office of the Secretary (OSEC) level. The case control number shall be in a format distinct from ordinary DARAB cases.

(e) Certificate of Finality — refers to the original or  certified true copy of a Certificate or Order of Finality issued by the Regional Director or the Secretary, or any of their authorized representatives, or the Office of the President of the Philippines regarding Agrarian Law Implementation (ALI) cases appealed to it, or an Entry of Judgment issued by a judicial court regarding ALI and other related cases.

(k)  Investigation  Investiga tion Proceeding  Proceeding — — is the process of  verifying the allegations in the petition and the comment.

(f) Comment — Comment  — refers to the verified responsive  pleading of the respondent respondent either admitting or denying the allegations in the petition and setting forth his/her  defenses. Respondent may attach affidavit/s or counteraffidavit/s and other relevant documents to the comment, pre-marked as Exhibits "1", "2", "3", and so forth.

(m)  Necessary Party Party — is not an indispensable party  but ought to be a party if complete complete relief is to be accorded as to those already parties, or for a complete determination or settlement of the claim subject of the action. Except when the concerned Provincial Agrarian Reform Officer (PARO) is himself the petitioner, in cases for cancellation, the PARO shall be impleaded as  party-respondent where it would be incumbent incumbent upon him to defend the propriety of the issuance of the subject title. All oppositors to an EP or CLOA shall be impleaded as a necessary party.

(g)  Farmer Beneficiaries Beneficiaries — refer to Agrarian Reform Beneficiaries (ARBs). (h)  Final Order  Order or  or  Resolution  Resolution — is an order or  resolution that disposes of the subject matter in its entirety or terminates a particular proceeding or action, leaving nothing else to be done but to enforce by execution what has been determined by the court, quasi judicial body, or tribunal. tribunal. cASTED (i)  Exclusive Jurisdiction Jurisdiction — is the power to adjudicate a case to the exclusion of all other courts and quasi-judicial bodies. It is that forum in which an action must be commenced because no other forum has the  jurisdiction to hear and determine the action. action. (j)  Indispensable  Indispen sable Party Party — is a party who has such an interest in the controversy or subject matter that a final adjudication cannot be made in his absence, without injuring or affecting that interest. Agrarian reform beneficiaries or identified beneficiaries and/or  their associations are indispensable parties in petitions for cancellation of their respective EPs, CLOAs, or  other title issued to them under any agrarian reform  program. The fact of non-registration of such associations with the Securities and Exchange Commission, Cooperative Development Authority, or  any other concerned government agency, shall not be used against them to deny the existence of their legal standing and interest in a case filed before the DAR.

(l)  Misuse of the Land  —  — is any act causing substantial and unreasonable damage on the land, and causing the deterioration and depletion of its soil fertility and improvements thereon.

(n)  Neglect or Abando Abandonment  nment — — refers to a clear and absolute intention to renounce a right or a claim, or to abandon a right or property coupled with an external act  by which that intention is expressed expressed or carried into effect. Intention to abandon implies a departure, with the avowed intent of never returning, resuming or  claiming the right and the interest that have been abandoned. It consists in any one of these conditions: (a) failure to cultivate the lot due to reasons other than the non-suitability of the land to agricultural purposes, for at least two (2) calendar years, and to pay the amortizations for the same period; (b) permanent transfer of residence by the beneficiary and his family, which has rendered him incapable of cultivating the lot; or (c) relinquishment of possession of the lot for at least two (2) calendar years and failure to pay the amortization for the same period. (o)  Nominal Party — refers to the party to an action who is connected to the case, but without any interest or   prejudice, so that the tribunal can resolve certain issues or have all the evidence proved with his help to give a  proper judgment. This nominal nominal party will not be affected by the result of the case and is not at fault or  considered for any benefits out of it. In cases for  cancellation, the Register of Deeds (ROD) of the place where the land covered by EPs, CLOAs, or titles sought

to be cancelled is situated must be impleaded as partyrespondent. (p) Original Jurisdiction — is the power to take cognizance of a case at its inception, try it, and pass  judgment thereon upon the law and facts. (q) — is a party who is a  Pauper or or Indigent Indigent Litigant  Litigant — farmer, agricultural lessee, tenant, farm worker, actual tiller, occupant, collective or cooperative of the foregoing beneficiaries, or amortizing owner-cultivator, and who shall allege in the verified complaint/petition or sworn statement such fact without need of further   proof. (r)  Petition for for Cancellation Cancellation — is a verified  pleading alleging the grounds grounds relied upon by the  petitioner in seeking the cancellation of the subject EPs, EPs, CLOAs, or other titles issued under any agrarian reform  program, which shall be duly supported supported by original or  certified true or photocopies of relevant documents together with affidavits of witnesses, and accordingly  pre-marked as Exhibits "A", "B", "C", and so forth. The petition must include as party-respondents the concerned holders or successors-in-interest of EPs, CLOAs, or other titles issued under any agrarian reform  program. (s)  Premature Conversion Conversion — refers to the undertaking of any development activity, the result of  which may modify or alter the physical characteristics of the agricultural land as would render it suitable for  non-agricultural purposes, without an approved conversion order from the DAR, pursuant to Section 11 of R.A. of  R.A. No. 8435. (t)  Re-allocation  Re-alloca tion — re refe fers rs to th thee pro roce cess ss of  substit sub stituti uting ng th thee far farmer mer ben benefic eficiar iary y on a spe specif cific ic landholding because the said beneficiary is found to be disqua dis qualif lified ied in an adm admini inistr strati ative ve pro proceed ceeding ing.. Th Thee grounds for re-allocation include but are not limited to the following: (1) abandonment, (2) waiver of rights to  become a beneficiary, and (3) commission of illegal transactions such as the transfer of rights or ownership of the award awarded ed land without without the written consent consent and approval of the DAR Regional Director concerned.

ARTICLE II

Grounds for Cancellation SECTION SECTIO N 4. Grounds. — Th Thee fo foll llow owin ing g ar aree th thee grounds for the cancellation of EPs, CLOAs, and other  titles issued under any agrarian reform program: 1. The landholding involves the retention area of  the landowner provided that the retention right was exercised by the latter within the period allowed by the applicable laws or rules from the receipt of the Notice of Coverage; 2. The landholding is excluded or exempted from coverage of CARP, P.D. No. 27, 27 , or any other agrarian reform laws provided that the application for exclusion thereof was filed within the period allowed by the applicable laws or rules from receipt of the Notice of  Coverage;; Coverage 3. Defective Notices of Coverage (NOCs) due to, among others, improper service thereof, or erroneous identification of the landowner or landholding landholding,,  provided, that the outcome of the cancellation  proceeding shall not prejudice the CARP coverage coverage of  the subject landholding; 4. The landholding is outside the authority of the DAR to dispose of, as the same falls under the exclusive authority of the Department of Environment and Natural Resources (DENR) or the National Commission on Indigenous People (NCIP); 5.

Erroneously-issued titles as a result of:

(a) erroneous technical description of the covered landholding; or  (b) the cancellation of the landowner's title prior to the issuance of the Certificate of Deposit (COD), in the case of CLOAs; 6. Misuse or diversion of financial and support services extended to ARBs pursuant to Section 37 of R.A. of  R.A. No. 6657, as amended; amended ;

7.

Misuse of the land;

8. Material misrepresentation of the ARB's basic qualifications as provided under Section 22 of  of R.A. R.A. No. 6657, as amended, amended , P.D. No. 27, 27, and other agrarian laws; 9. Premature conversion by the ARB pursuant to Section 73 (F) of R.A. of  R.A. No. 6657, as amended and Section 11 of R.A. of  R.A. No. 8435; 8435 ; 10. Sale, transfer, lease, or any other form of  conveyance by a beneficiary of the right of ownership, right to use, or any other usufructuary right over the land acquired by virtue of being a beneficiary, in order  to violate or circumvent the provisions of Sections 27 and 73 of R.A. of  R.A. No. 6657, as amended, amended , P.D. No. 27 2 7, and other agrarian laws; 11. Deliberate and absolute non-payment of three (3) consecutive amortizations in case of voluntary land transfer/direct payment scheme, provided that the ARB has been installed and is in actual possession of the land, and provided further that the last proviso will not apply if the non-possession of the ARB is attributable to his or her own fault; 12. Deliberate and absolute failure of the ARB to  pay at least three (3) annual amortizations to the Land Bank of the Philippines (LBP), provided an amortization table has been issued to the ARB, and  provided further that the amortizations amortizations shall start one (1) year from the ARB's actual occupancy pursuant to Section 26 of R.A. of  R.A. No. 6657, as amended; amended ; 13. Neglect or abandonment of the awarded land as defined by Section 3(n); or  14.

Acts analogous to the foregoing. ARTICLE III  Proceduree  Procedur

SECTION SECT ION 5.  Indefeasib  Indefeasibility, ility, A Bar to Cancella Cancellation tion  Proceedings. — EPs, CLOAs  Proceedings. CLOAs,, and other titles issued under any agrarian reform program shall be indefeasible and an d im impr presc escri ript ptib ible le af afte terr on onee (1 (1)) ye year ar fr from om it itss

registration registratio n with the Office of the Regis Register ter of Deeds (ROD). (RO D). Acc Accord ording ingly, ly, th thee DAR Sec Secret retary ary sha shall ll no nott entert ent ertain ain an any y act action ion for the can cancell cellati ation on of EP EPs, s, CLOAs, and titles after the lapse of the said one (1) year period, except for cases involving Sections 4.4 to 4.14 4.1 4 of these Rules. Rules. Th Thee sai said d on onee (1 (1)) yea yearr per period iod,, however, shall be interrupted upon the filing of any: 1. ALI case, with a prayer for the cancellation of  the title, involving only the grounds mentioned in Section 4.1 to 4.3, with the Regional Director or the DAR Secretary; or  2. other case with any court, office, or tribunal other than the Regional Director or the DAR Secretary, where the latter two has no jurisdiction, involving involving the grounds mentioned in Section 4.1 to 4.3 only. This period shall likewise be deemed interrupted with respect to all pending ALI cases involving the grounds mentioned in Section 4.1 to 4.3 at the time these Rules take into effect.  Nothing in this provision may be used to unduly delay the ripening of the indefeasibility of a title. SECT SE CTIO ION N 6.  ALI Cases Covering the Grounds  Mentioned in Section 4. — All ALI cases pending with  Mentioned the Office Office of the Reg Regio ional nal Director Director of the DAR, involving any of the grounds mentioned in Section 4 of  Article II, insofar as there are already registered EPs or  CLOAs CLO As cov coveri ering ng the sub subjec jectt lan landho dholdi lding, ng, sha shall ll be dismissed with instructions to file a verified Petition for  Cancellation in accordance with this A.O. SECTION 7.  Initiati SECTION  Initiation on of a Cancella Cancellation tion Case. — A cancellatio cancel lation n case shall be initiated initiated by the filing of a verified verif ied Petition for Cance Cancellatio llation n and the paym payment ent of  the filing fee, if necessary. The verified Petition shall be filed with the Office of the PARAD who has jurisdiction over the place where the land covered by the EPs, CLOAs, or other titles sought to be cancelled is located. The Disclosure Disclosure Stat Statement ement stated in Secti Section on 8 of this A.O. must be attached to the verified Petition.

The documentary and evidentiary requirements mandated by the appropriate A.O.s governing the ALI component of the cancellation case must also be attached to the verified Petition. The party initiating the cancellation case must understand that the different grounds stated in Section 4 of this A.O. have documentary and evidentiary requirements that are  provided by the other A.O.s governing the ALI component thereof. Failure, therefore, to attach such documentary and evidentiary requirements as mandated  by the appropriate A.O.s may result in the dismissal of  the case for failure of the petitioner to show proof of  his/her/its cause of action. In the event any of these requirements are lacking, the PARAD shall issue an Interlocutory Order requiring the  petitioner to submit them. The failure of the PARAD to issue such Interlocutory Order, or the failure of the  petitioner to receive the same, shall not prevent the dismissal of the cancellation case on the ground that the  petitioner failed to prove his/her/its cause of action. At least five (5) copies of the petition must be prepared and filed with the PARAD. If there is more than one (1) respondent, more copies should be prepared and filed  by the petitioner in order to provide all of them with a copy. SECTION 8.  Disclosure Statement. — The petitioner  shall disclose and certify under oath, in the petition or  its integral annex, that: (a) He is a party-in-interest or properly authorized by a party-in-interest; (b) He has not commenced and/or is aware of any other action or proceeding involving the  same land, or a portion thereof, or issue in any court, tribunal, or quasi-judicial agency; and to the best of his knowledge, no such action or   proceeding is pending in any court, tribunal, or  quasi-judicial agency; (c) If there is any action or proceeding which is either pending or may have been terminated, he shall state the status thereof; and

(d) If he thereafter learns that a similar  action or proceeding has been filed or is pending  before any court, tribunal, or quasi-judicial agency, he undertakes to report that fact within five (5) days therefrom to the DAR Office where the case for cancellation is pending. The failure to file the required disclosure statement, and/or the commission of acts constituting forum shopping, shall be a ground for dismissal of the cancellation case without prejudice. SECTION 9. Who May File a Petition for   Cancellation. — The verified petition for cancellation may be filed by any party in interest with respect to the title of the land, such as, but not limited to, the following: (a)

The person granted or applying for retention;

(b) The person whose land was declared exempted or excluded from the coverage of R.A. No. 6657, as amended, or of P.D. No. 27, or who is applying for such exemption or exclusion thereunder; (c) Qualified farmer-beneficiaries who have been determined as legally entitled to the generated and issued CLOA, or persons applying for inclusion as a farmer-beneficiary; (d) Re-allocatees of the awarded land pursuant to P.D. No. 27, or persons applying for re-allocation under the same law; (e)

Actual tillers or occupants of the subject land; or 

(f) Provincial Agrarian Reform Officers (PAROs) or the Regional Directors (RDs) with respect to those cases involving any of the grounds under Sections 4.5 to 4.14 or pursuant to a lawful Order. SECTION 10.  Filing Fee. — A filing fee of  Three Thousand Pesos (Php3,000.00) shall be paid by the petitioner to the DAR Provincial Office Cashier, except if the petitioner is the government or any of its officials or employees in the exercise of its or their  official function or in case the petitioner is a pauper 

litigant, in which case the payment of the filing fee shall  be waived. SECTION 11. Cancellation with Final judgment  in an ALI Case. — In the event that there is already a  prior and final determination of an ALI case involving any of the grounds mentioned in Section 4 of Article II, the petitioner may file an action for cancellation in accordance with these Rules by filing a petition together  with the following duly marked documents: 1. Original or certified true copy of the final and executory Order or Resolution of the DAR Regional Director, DAR Secretary, or the court; 2.

Certificate of Finality;

3. Original owner's duplicate or certified true copy of the EPs, CLOAs, or any other titles sought to be cancelled; 4. Official Receipt issued for the payment of the corresponding filing fee, unless the petitioner is a  pauper or indigent litigant; and 5. Any other relevant documents that may support the petition for cancellation. SECTION 12.  Assignment of Case Control   Number. — Within the same day of receipt of the verified petition and, if applicable, proof of payment of  the filing fee, the clerk of the PARAD shall assign a Case Control Number for monitoring purposes. SECTION 13.  Issuance of Notice. — The PARAD shall retain two (2) copies of the petition, and the rest to be served upon the respondents, ROD, and PARO concerned. The EP or CLOA holder must be deemed as a respondent. The PARAD shall, within five (5) days from receipt of   proof of the verified petitions and full payment of the filing fee, issue a Notice to Comment, attaching thereto a copy of the petition and supporting documents, if any,  pre-marked as exhibits "A", "B", "C", and so forth.

The aforesaid Notice shall direct the respondent(s) and concerned ROD to file a verified Comment to the  petition, attaching thereto duly marked documentary evidence marked as exhibits "1", "2", "3" and so forth within a non-extendible period of fifteen (15) days from receipt thereof, furnishing a copy to the petitioner. The same Notice shall inform the party that the component ALI case of the cancellation case may be governed by other A.O.s and he/she is therefore advised to review the said A.O.s. The recommended form of said Notice is attached hereto as Form 2. HSIDTE SECTION 14. Service of Notice. — The PARAD shall immediately instruct his Sheriff to serve the  Notice to Comment, together with the petition and marked exhibits, to the respondent(s) and concerned ROD. Service of the Notice to Comment shall be made to the respondents through the following persons: (1) Service upon the respondent who is a natural  person — The Notice shall be served to the respondent; (2) Service upon co-owners of collective CLOAs —  In case the CLOA-holder of the landholding are multiple persons as co-owners, the Notice shall be served upon each and every registered co-owner, unless one is specifically authorized, in a written public document, to receive for the co-owners; (3) Service upon minors — When the respondent is a minor, service shall be made upon him/her personally and to his/her father and/or mother, whoever has lawful custody of the said minor. If the respondent has no  parents, service shall be made upon him/her personally and to his/her legal guardian if he/she has one, or, if  none, upon his/her guardian ad litem whose appointment shall be applied for by the DAR; (4) Service upon incompetents — When the respondent is insane or otherwise incompetent, service shall be made upon him/her personally and to his/her  legal guardian if he/she has one, or, if none, upon his/her guardian ad litem whose appointment shall be applied for by the DAR; (5) Service upon entity without juridical personality  — When the respondents who are persons associated

through an entity without juridical personality are issued a Notice under the name by which they are generally or commonly known, service may be effected upon all the respondents by se rving upon any one of  them, or upon the person in charge of the office or place of business maintained in such name, provided that service shall not individually bind any person whose connection with the entity has, upon due notice, been severed before the proceeding was brought; (6) Service upon domestic private juridical entity  — When the respondent is a corporation, partnership, or  association organized under the laws of the Philippines with a juridical personality, service may be made on the  president, managing partner, general manager, corporate secretary, treasurer, or in-house counsel; and (7) Service upon the Estate of a deceased respondent — When the respondent is an Estate of a deceased person, the Notice shall be served to: 1. if the settlement of the Estate is currently  pending with the court, the Executor or the Administrator of the Estate; or  2. if the Estate is not pending with the court or if  there is no executor or administrator, the Notice shall be served to all known heirs and shall also be published. The Notice to Comment shall be served personally. If  the person authorized to receive cannot be found at the date of service, it shall be, on the same day, served  personally to any person of suitable age and discretion who is residing at the residence of the Respondent, or  with some competent person in charge at the place of   business of the Respondent. In the case of juridical entities, the substituted service of said Notice shall be made to a competent person in charge of the office of  those mentioned in Section 14 (6) hereof. If the respondent cannot be personally served with the  Notice to Comment, service shall be effected by  publication, the Notice following the form stated in Annex "A" of this A.O. In case the Sheriff effects the service by publication, he must submit a report to the PARAD explaining in detail the efforts he has made to  personally serve the said Notice. The published Notice

shall include instructions on how the Respondent may get a copy of the verified Petition from the PARAD. The expenses for the publication of the Notice to Comment shall be borne by the petitioner, unless the latter is a pauper or indigent litigant. The Sheriff or any personnel of the DAR that may be authorized by the Sheriff shall post on the bulletin  board of the Barangay Hall where the land covered by the EP, CLOA, or other title of the land sought to be cancelled is located, a 72.39 by 57.15 centimeters (28.5 x 22.5 inches) notice stating the following both in English and in the local dialect: "To all concerned, [Original/Transfer] Certificate of Title No. CLOA-____________ registered in the name of   ______________ is currently the subject of a cancellation proceeding with the Department of  Agrarian Reform with case number   ___________. The above-mentioned farmer-beneficiary and all other respondents _______________ are required to submit their verified comments on or   before _________________ with the Provincial Agrarian Reform Adjudicator located at  _______________________. Removal of this notice is punishable by law.  _________________  PARAD of _______" The Barangay Secretary shall execute a certificate of   posting (containing, among others, the date when the notice was posted at the bulletin board). The Sheriff  shall collect the said certification and take photographs of the posted notice and submit them to the PARAD. The petitioner shall cause the production of a billboard,  preferably made of tarpaulin or any visible waterproof  and environmentally-friendly material, measuring 60.96  by 91.44 centimeters (2 x 3 feet), containing the same message as the notice posted on the Barangay Hall  billboard, and install the same at a conspicuous location

along the premises of the landholding within three (3) days from his filing of his verified petition. He shall thereafter take at least three (3) photographs of the same notice and submit them to the PARAD no later than five (5) days from the filing of his verified petition. The  petitioner may seek the assistance of the DAR in case there is probable cause to believe that the installation of  the billboard will be confronted with violence. The Sheriff shall submit a report to the PARAD on the mode of service used for said Notice, and the fact of  transmittal of the notice to the Barangay Secretary concerned. For those respondents who did not receive the Notice to Comment personally, the date of publication or the  posting at the bulletin board or the installation of the tarpaulin billboard, whichever is later, shall be deemed the date of receipt of the same.

(d) Valid authorization by a person allowed by Section 9 of these Rules to file a cancellation case, in case the person filing is acting on behalf of the said  person; (e) Notices, and proof of service and receipt of said notices; (f) Owner's Duplicate Copy or certified photocopy of EPs, CLOAs, or other titles; (g)

Memorandum;

(h)

Marked documentary exhibits;

(i) The photographs of the notices as mentioned in Section 14 of these Rules; (j)

SECTION 15. Time to Comment. — The respondent has fifteen (15) days from receipt of the aforesaid Notice to file or submit his or her verified Comment to the PARAD. The failure to submit the Comment shall be deemed a general denial of the material allegations of the petition. SECTION 16.  Information About the Parties or  their Counsel. — The counsel of the Parties, or, if none, the Parties themselves, must indicate in their verified  petition or their comment, whichever is applicable, their  name, address, electronic mail address, telephone numbers, and fax numbers. SECTION 17. Case Folder Build-Up. — The clerk of the PARAD is tasked with the preparation of a complete Case Folder, which must contain the following: (a) Official Receipt as proof of payment, except those exempted from payment of filing fees under  Section 10 of these Rules; IScaAE (b)

Verified Petition with Disclosure Statement;

(c)

Verified Comment;

Either:

a. Documentary requirements of A.O.s governing the component ALI case; or   b. If the case is filed in accordance with Section 11 hereof: i. Original or certified true or photocopy of final and executory orders and resolutions; and ii. Original or certified true or photocopy of  Certificate of Finality; and STECAc (k)

Other pertinent documents.

In the event that any of the above-mentioned documents are missing, the PARAD shall issue an Interlocutory Order requiring the petitioner or any of the respondents to submit those missing documents. The failure of the PARAD to issue such Interlocutory Order, or the failure of a party to receive such Order, shall not be an excuse for the said party, who has the primary responsibility to submit all necessary documents, to provide these. Upon completion of the Case Folder, the clerk of the PARAD shall cause the arranging of each document therein in chronological order according to date of 

receipt, and affix his initial on each and every page. When for special reasons a particular document in the records requires that it be free from any form of  marking, the affixing of initials shall be made only upon  photocopies thereof, with the originals placed in a separate envelope while said photocopies shall form  part of the case folder. SECTION 18. Transmittal of Case Folder to the  Regional Director, the RCLUPPI, the CLUPPI, or the  BALA. — The PARAD shall prepare a Transmittal Letter accompanying the Case Folder, particularly stating therein the parties involved, the number and description of the contents of the Case Folder, and the number of pages contained therein. Thereafter, the PARAD shall, within ten (10) days from the completion of the Case Folder, forward the s ame to: (1) The Regional Director who has jurisdiction over  the subject landholding, if the cancellation case is filed on the grounds mentioned in Section 4 (1), (3), (4), (5), (6), (7), (8), (10), (11), (12), and (13) of this A.O.; (2) The Regional Center for Land Use Policy Planning and Implementation (RCLUPPI), Center for  Land Use Policy Planning and Implementation (CLUPPI), or the Regional Director, depending on who has jurisdiction over the component exclusion or  exemption case of the cancellation case, as vested by the governing A.O., if the said cancellation case is filed on the ground mentioned in Section 4 (2) of this A.O.; (3) The RCLUPPI (if the size of the subject landholding is five [5] hectares or less) or the CLUPPI (if the size of the subject landholding is more than five [5] hectares), if the cancellation case is filed on the ground mentioned in Section 4 (9) of this A.O.; and CAaSHI (4) The Bureau of Agrarian Legal Assistance (BALA), if the cancellation case is filed in accordance with Section 11 of this A.O. In such case, the BALA shall proceed with the procedure set by Section 22 of  this A.O. The PARAD shall keep for his file one Case Folder  containing photocopies of the original Case Folder.

SECTION 19.  Absence of a PARAD. — In the event that the PARAD concerned needs to inhibit on the case, or that there is a vacancy in the Office of the PARAD concerned and no radiating Adjudicator has yet been designated, then the functions of the PARAD in Sections 3 (d), 7, 12, 13, 14, 15, 17, 18, and 42 hereof shall be delegated to the Regional Agrarian Reform Adjudicator (RARAD) of the place where the land covered by the EPs, CLOAs, or other titles sought to be cancelled is located. SECTION 20.  Investigation by the Regional   Director, RCLUPPI, or CLUPPI. — The Regional Director, RCLUPPI, or CLUPPI, whomever or  whichever the Case Folder was transmitted to, shall conduct an ocular inspection (OCI), if necessary, after  giving all the parties prior notice thereof. The said Regional Director, RCLUPPI, or CLUPPI may use video recordings during the OCI, together with an affidavit of authentication from the person recording the video, both of which shall form part of the OCI Report. If an OCI is conducted, the said Regional Director, RCLUPPI, or CLUPPI shall prepare the Report thereon within ten (10) days from the date the OCI was conducted.  No hearing may be conducted by the said Regional Director, RCLUPPI, or CLUPPI in the course of the investigation. The parties may submit, at this time, amended or supplemental position papers, at their own instance or upon the request of the Regional Director, RCLUPPI, or CLUPPI. Proof of service to the opposing  parties of the aforementioned amended or supplemental  position paper must be attached to that filed with the DAR. The position paper shall not be accepted without the said proof of service. The opposing party may submit a Comment to the said position paper within fifteen (15) days from their receipt thereof, furnishing a copy of the same to the other party. SECTION 21.  Investigation Report and   Recommendation. — Upon terminati on of the investigation proceedings, or if no investigation is conducted, the Regional Director, RCLUPPI, or  CLUPPI, whomever or whichever the Case Folder was transmitted to, shall prepare an Investigation Report for  transmittal to the BALA, containing therein the factual findings and observations regarding the case. The said

Regional Director, RCLUPPI, or CLUPPI, must also  provide a Recommendation as to how the ALI component should be resolved. The said Regional Director, RCLUPPI, or CLUPPI, shall include his/its Investigation Report and Recommendation and the minutes of proceedings of the investigation in the Case Folder. Within five (5) days from the execution of the Investigation Report and Recommendation, the Case Folder shall be transmitted to the BALA. The said Regional Director, RCLUPPI, or CLUPPI shall keep for his file one Case Folder containing  photocopies of the original Case Folder. SECTION 22.  Pagination and Indexing of Case  Folders. — Upon receipt of the Case Folder, the BALA shall substantially adopt the Case Control Number   previously assigned therefor. For this purpose, the BALA shall maintain a Docket Book containing the docket numbers assigned for each case, the details of  the petition, and the date the Case Folder was received. The BALA shall cause the arranging of each document therein in chronological order according to date of  receipt, and inscribe a page number on and initial each and every page. When for special reasons a particular  document in the records requires that it be free from any form of marking, the pagination and affixing of initials shall be made only upon photocopies thereof, with the originals placed in a separate envelope while said  photocopies shall form part of the case folder. He shall also prepare a table of contents, which shall be placed immediately after the Endorsement by the BALA of the Case Folder. The BALA shall, within fifteen (15) days from its receipt of the Case Folder, transmit the arranged,  paginated, and indexed Case Folder to the Office of the Assistant Secretary for Legal Affairs (ASEC-LAO). SECTION 23. Conduct of Clarificatory  Hearing. — The DAR Undersecretary for Legal Affairs, when he deems it ne ce ssary or upon the recommendation of the Assistant Secretary for Legal Affairs, may conduct a hearing for clarification, issue

interlocutory orders, and require submission of  additional evidence. He may authorize the Legal Division Chief of the Provincial or Regional Office or  the PARAD or RARAD concerned, to conduct such hearings, if the Undersecretary deems it necessary. For this purpose, the official record of the proceedings conducted shall be kept and form part of the case folder. SECTION 24.  Review, Findings, and   Recommendation by ASEC-LAO. — The ASEC-LAO shall conduct a review, evaluation, and thorough assessment of the entire case records. Thereafter, the ASEC-LAO shall prepare its findings and recommendation and transmit the same to the Office of  the Undersecretary for Legal Affairs (USEC-LAO). SECTION 25.  Review, Findings, and   Recommendation by USEC-LAO. — The USEC-LAO shall conduct its own review, evaluation, and thorough assessment of the entire case records. Thereafter, the USEC-LAO shall prepare its findings and recommendation. SECTION 26. Transmittal of Case Folder with  Findings and Recommendation to the DAR Secretary. —  The USEC-LAO shall, within five (5) days from the completion of its aforesaid recommendation, transmit the same, together with the Case Folder, to the DAR  Secretary. The date of such transmittal shall be considered the date when the case is deemed submitted for resolution. Such date shall be indicated in the Department's website and/or the case monitoring system. SECTION 27.  Decision. — The DAR Secretary shall render a Decision by issuing an Order and furnishing a copy thereof by registered mail and, if  available, electronic mail, to the parties' counsel or  representatives, as well as the parties themselves and the DAR officials who took part in the proceedings. The soft copy of the Order transmitted to the parties by electronic mail shall merely serve as advance notice thereof, as the actual date of receipt of the hard copy sent by registered mail shall be the basis for the determination of the period to file either a motion for  reconsideration or an appeal.

In case a copy of the Order sent by registered mail is unclaimed and is returned to the DAR Secretary, the caption and the dispositive portion thereof shall be  published in a newspaper of general circulation. The date of the publication shall be deemed as the time the Order is received by the party who failed to receive it  by registered mail. When the cancellation of a CLOA is based on Section 4 (5) (b) hereof, and there is no finding that the COD should not be or should not have been issued, the DAR  Secretary shall not issue the Order until a COD has  been issued. A certified true copy of the COD must be attached to the Order of the DAR Secretary, especially the copies of the Order that shall be furnished to the  parties. ARTICLE IV  Disqualification of the Secretary as to the ALI  Component of the Cancellation Case

SECTION 28.  Disqualification of the Secretary as to the ALI Component of the Cancellation Case. — In cancellation cases other than those falling under Section 11 of this A.O., where in the Secretary's sound discretion, there are just and valid grounds to believe he might be induced to act in favor of one party or with  bias or prejudice against a party arising out of  circumstances reasonably capable of inciting such a state of mind, he must inhibit from deciding the ALI component of the case by putting such fact and reason into writing and incorporating it in the case folder. Thereafter, it shall be incumbent upon the Undersecretary of Legal Affairs to render a Decision as to the ALI component of the case. The Undersecretary of Legal Affairs may reconsider his Decision, upon proper motion in accordance with the ALI Rules of Procedure. The aforementioned Decision may also be appealed to the Office of the President in accordance with the rules and procedures that are set forth by the latter. The issue as to the cancellation proper of the EP, CLOA, or other title issued under any agrarian reform  program shall be suspended until such time that a final

and executory decision has been rendered on the ALI component of the case. ARTICLE V  Prohibited Motions

SECTION 29.  Prohibited Motions. — following motions shall not be allowed:

(d) Official Receipt issued for the payment of the corresponding filing fee, unless the petitioner is exempt under Section 10 of Article III of these Rules; and (e) Any other relevant documents that may support the petition for cancellation;

The 2.

Failure to pay filing fee;

(a) Motion to declare respondent in default or for  default judgment;

3. Failure to comply with Section 8 of Article III of these Rules;

(b)

4. Failure to submit the documentary requirements mandated by other A.O.s governing the ALI component of the case; or 

All motions filed before the Comment;

(c) Motion for extension of time to file an appeal, a motion for reconsideration, or a memorandum; and (d)

Second Motion for Reconsideration.

In case any party files any of the prohibited Motions, the PARAD, Regional Director, RCLUPPI, CLUPPI, BALA, Undersecretary for Legal Affairs, or the Secretary, whomever or whichever has the Case Folder, shall accept the written motion and include it in the Case Folder, but he/it shall not act upon the matter. ARTICLE VI Grounds for Dismissal 

SECTION 30.  Dismissal of Petition. — The  petition for cancellation may be denied by the DAR  Secretary on the following grounds: 1. If, in an action for cancellation falling under  Section 11 of Article III, the petitioner failed to submit any of the following documents: (a) Original, certified true, or photocopies of the final and executory Order and Resolution of the DAR  Regional Director, DAR Secretary, or the courts; (b)

Certificate of Finality;

(c) Original owner's duplicate or certified true copy of the EPs, CLOAs, or any other titles sought to be cancelled;

5. When the petition for cancellation was filed after the one (1) year period as provided under Article III, Section 5 of these Rules, save those instances covered by Article II, Sections 4.4 to 4.14 hereof. ARTICLE VII  Direct Order of Cancellation

SECTION 31.  Direct Cancellation. — The  procedures in Articles III, IV, and V notwithstanding, the Secretary may, in resolving an appeal of an ALI case decision of a Regional Director, order the cancellation of an EP, CLOA, or any other title issued under any agrarian reform program, provided that all of  the following conditions are present: 1. The decision of the Secretary in the appealed ALI case shall result in the cancellation of the EP, CLOA, or other title issued under any agrarian reform  program; and 2. The holder of the EP, CLOA, or other title is given the right to be heard through the procedures set  by Section 32 of this A.O. SECTION 32. Order to Comment. — To ensure that due process is afforded to the holder of the EP, CLOA, or other title issued under any agrarian reform  program that may be cancelled, if the Secretary,  pending resolution of an ALI case appealed from the decision of a Regional Director, determines that:

1. A possible decision of the Secretary in the appealed ALI case shall result in the cancellation of the EP, CLOA, or other title issued under any agrarian reform program; and 2. The holder of the EP, CLOA, or other title is a  party to the appealed ALI case. he shall issue an Interlocutory Order directing the PARAD to: i. inform the holder of the EP, CLOA, or other title, through a Notice that shall be served in the same manner  as the service of a Notice to Comment  provided Section 14 of this A.O., that the  pending ALI case is being considered by the OSEC as a cancellation case, and direct him/her to submit to the OSEC, with a copy furnished to the opposing  party, within thirty (30) days from receipt thereof, a Comment on the issue of the ALI case and the possibility of the cancellation of the his/her awarded title as a consequence of an adverse decision in the case; ii. post Notices in the landholding and on the bulletin board of the Barangay Hall that the subject landholding is a subject of a cancellation case. The opposing party may file a Reply to the Comment within fifteen (15) days from his receipt thereof without the need of an Order from the OSEC. ARTICLE VIII  Motion for Reconsideration

SECTION 33.  Motion for Reconsideration. — A  party may file only one (1) Motion for Reconsideration of the Order of the DAR Secretary to cancel the EP, CLOA, or other title issued under any agrarian reform  program, within a period of fifteen (15) days from receipt thereof, furnishing a copy of the motion to all other parties' counsel or representative. The filing of the

Motion for Reconsideration shall interrupt the running of the reglementary period within which to file a notice of appeal. SECTION 34. Comment on Motion for   Reconsideration. — The adverse party may file a Comment on the Motion for Reconsideration within a non-extendible period of ten (10) days from receipt thereof. No Order from the DAR Secretary is necessary for a party to file a Comment. SECTION 35.  Resolution of the Motion for   Reconsideration. — The DAR Secretary shall resolve the Motion for Reconsideration by issuing an Order/Resolution in due course, furnishing a copy thereof by registered mail and, if available, electronic mail, to the parties' counsel or representative as well as the parties themselves and the DAR officials who took   part in the proceedings. The soft copy of the Order  transmitted to the parties by electronic mail shall merely serve as advance notice thereof, as the actual date of  receipt of the hard copy sent by registered mail shall be the basis for the determination of the period to file an appeal. In case a copy of the Order sent by registered mail is unclaimed and is returned to the DAR Secretary, the caption and the dispositive portion thereof shall be  published in a newspaper of general circulation. The date of the publication shall be deemed as the time the Order is received by the party who failed to receive it  by registered mail. ARTICLE IX  Appeal 

SECTION 36.  Appeal of the Decision of the DAR Secretary. — The Order or Resolution of the DAR  Secretary may be appealed to the Office of the President, in accordance with the rules and procedures that are set forth by the latter.

executory upon the expiration of the period to appeal therefrom if no appeal has been duly perfected. SECTION 38. Order of Finality. — The BALA shall issue an Order of Finality upon any party's formal request and presentation of proof that no appeal to the Office of the President has been filed before the period to appeal expired. ARTICLE XI  Execution

SECTION 39.  Execution. — If the Order or  Resolution of the DAR Secretary becomes final and executory in accordance with Article IX hereof, the BALA, on motion or motu proprio, shall issue a Writ of  Implementation. If an appeal has been duly perfected and finally resolved, the execution may forthwith be applied by filing a Motion for the Issuance of a Writ of  Implementation with the Undersecretary for Legal Affairs within five (5) years from the date of entry of  the final decision. After the lapse of the five (5) year reglementary period, a party may file an action for the execution of a final decision on the Cancellation case with the Office of the Secretary at any time prior to it being barred by the statute of limitations. The Writ of Implementation shall direct the concerned Registry of Deeds to cancel the EP, CLOA, or other  title issued pursuant to any agrarian reform program. The PARO concerned shall effect the necessary actions in order to implement the DAR Secretary's Order.

ARTICLE X  Finality

SECTION 40. Writ of Possession and Writ of   Demolition. — After the issuance of the Writ of  Implementation, the BALA, on motion or  motu proprio, may issue a Writ of Possession and/or a Writ of  Demolition directing the Sheriff of the concerned PARAD to install the rightful title-holder of the subject landholding.

SECTION 37.  Finality. — The Order or   Resolution of the DAR Secretary shall become final and

SECTION 41.  Enforcement of a Partial  Cancellation. — Whenever the Order of cancellation

 pertains only to a portion of an awarded land, or, in case of a collective CLOA, only to the inchoate portion thereof of one or more, but not all, of the ARBs, the Writ of Implementation shall direct the: 1. PARO concerned to issue a new EP or  CLOA covering the area not cancelled or in the name of the ARBs whose right to the said award are not terminated by the cancellation Order; and 2. Register of Deeds concerned to cancel the entire affected EP or CLOA and to register  that issued by the PARO. ARTICLE XII  Provisional Relief 

SECTION 42. Temporary Restraining Order. —  At any time prior to the transmittal of the PARAD of a Case Folder to the OSEC, in cases where any party may immediately suffer grave or irreparable damage, or  where the performance or continuance of certain acts will render the case moot and academic, or where there is a need to maintain peace and order and prevent injury or loss of life or property, the PARAD may, at the instance of any party, issue a Temporary Restraining Order (TRO), which shall be only be effective for a non-extendible period of seventy-two (72) hours, to  prevent grave and irreparable damage. During such  period, the party may file for a Cease and Desist Order  with the OSEC or USEC-LAO. SECTION 43. Cease and Desist Order. — At any time prior to either the finality of the Order of the Secretary or the perfection of an appeal, in cases where any party may suffer grave or irreparable damage, or  where the performance or continuance of certain acts will render the case moot and academic, or where there is a need to maintain peace and order and prevent injury or loss of life or property, the Secretary or the Undersecretary for Legal Affairs may, motu proprio or  at the instance of any party, issue a Cease and Desist Order (CDO) to prevent grave and irreparable damage while awaiting resolution of the case.

SECTION 44.  Failure to Comply, Ground for  Contempt. — The failure of any person to comply with the TRO or CDO is a ground for Indirect Contempt. ARTICLE XIII  Powers of the Secretary

SECTION 45.  Powers of the Secretary. — The DAR Secretary and the Undersecretary for Legal Affairs shall have the power to summon witnesses, administer oaths, take testimonies, require submission of reports, compel the production of books and documents and answers to interrogatories, issue subpoena duces tecum and ad testificandum, and issue other writs and processes necessary for the resolution of the petition. The DAR Secretary shall likewise have contempt powers, direct and indirect, in accordance with Section 50 of R.A. No. 6657, as amended. ARTICLE XIV  Final Provisions

SECTION 46. Case Records are Public  Documents. — Subject to the provisions of pertinent laws and guidelines on confidentiality and transparency, including Memorandum Circular No. 7, Series of 2011, the records of a cancellation case are public documents. However, confidential information as provided for by the Department's rules and related laws shall not be disclosed. SECTION 47. Suspension of Rules. — The DAR  Secretary may suspend the application of these Rules in order to serve and protect the interest of justice.

the appropriate PARAD and the procedures stated from Section 17 of this A.O. onwards shall be followed. The USEC-LAO shall inform the parties of the said cancellation cases as to the fact that the cancellation case has been referred to the PARAD. Those cancellation cases, on the other hand, that the USEC-LAO shall deem ready for disposition shall be resolved in accordance with the procedures stated from Section 25 of this A.O. onwards. The Petitioners in all cancellation cases pending as of  the time of the effectivity of this A.O. must submit to the said OSEC or the PARAD, whoever is currently holding the case folder, a Disclosure Statement, as described in Section 8 hereof. Non-submission of the abovementioned Statement shall be a ground for the dismissal of the Petition without prejudice. The OSEC or USEC-LAO shall send notices to all such Petitioners to inform them of this duty. SATDHE SECTION 49.  Repealing Clause. — These Rules repeal A.O. No. 3, Series of 2009, and all orders, circulars, rules and regulations, and issuances or   portions thereof that are inconsistent herewith. SECTION 50. Separability Clause. — Any  judicial pronouncement declaring as unconstitutional any provision of these Rules shall have no effect on the validity of the other provisions not affected thereby. SECTION 51.  Effectivity Clause. — These Rules shall take effect ten (10) days after its publication in two (2) newspapers of general circulation. Diliman, Quezon City, September 21, 2011.

SECTION 48. Transitory Provisions. — The USEC-LAO shall, within thirty (30) days from the effectivity of this A.O., determine which among the cases for cancellation of registered EPs, CLOAs, and other titles pending with the OSEC, including those referred to it by the DARAB or the appropriate Adjudicator, shall require the necessary case buildup. EaICAD Those cancellation cases that the USEC-LAO shall deem necessary for case build-up shall be transmitted to

(SGD.) VIRGILIO R. DE LOS REYES Secretary

 Published in the Philippine Star and Business World on September 26, 2011. ANNEX A

To all concerned,

[Original/Transfer] Certificate of Title No. CLOA ____________ registered in the name of   ______________ is currently the subject of a cancellation proceeding with the Department of  Agrarian Reform with case number ___________. The above-mentioned farmer-beneficiary and all other  respondents _______________ are required to submit their verified comments on or before  _________________ with the Provincial Agrarian Reform Adjudicator located at  _______________________.

aforesaid Petition for Cancellation has been filed.  ————————  Petitioner 

SUBSCRIBED AND SWORN to before me this  ______ day of ________, affiant exhibiting to me his __________________ issued at _________ on  _______________. Doc. No. _________ 

 Form 1: Verification and Disclosure Statement 

Page No. _________ 

Republic of the  _____________________) S.S.

Book No. _________ 

Philippines)

 pagdating sa aspetong kasong Agrarian Law Implementation (ALI) nito.

Lubos na Gumagalang,

 ——————————  PARAD ng ___________________  Address: ____________________  Email:  ______________________  Petsa ng pagtangap: __________  Telephone  ___________  _______________ 

Number: Natanggap ni:

Series of _________.

VERIFICATION AND DISCLOSURE STATEMENT   Form 2: Notice to Comment  I, _______________, of legal age, Filipino, single, and with residence at  _________________________ after having been sworn to in accordance to laws, hereby depose and say that: 1. I am the Petitioner in the case at bar and have caused the preparation of the Petition; 2. I have read the pleading and confirm that the allegations therein are true and correct as of  my personal knowledge or based on authentic records; and 3. I further certify that I have not commenced and/or am not aware of any other  action or proceeding involving the same land, or  a portion thereof, or issue in any court, tribunal, or quasi-judicial agency; and to the best of my knowledge, no such action or proceeding is  pending in any court, tribunal, or quasi-judicial agency, and if I should thereafter learn that the same or similar action or claim has been filed or  is pending, I shall report that fact within five (5) days therefrom to the DAR Office where this

 _______________   _______________ 

Ginoo/Binibini, Binibigyan po kayo ng abiso na ang EP/CLOA No.  ________ na rehistrado sa pangalan ninyo ay  pinapakansela sa tanggapan ng Kalihim ng DAR ni  ________________________. Ang petisyon para sa pagkansela ay naisumite sa tanggapan ng Provincial Agrarian Reform Adjudicator ng  probinsya ng ___________ noong  _____________. Kalakip nitong abiso ang kopya ng petisyon at mga ebidensya. Binibigyan po kayo ng labing limang (15) araw mula sa pagtanggap ninyo nito para magharap ng inyong kasagutan o depensa sa pagkansela ng nasabing EP/CLOA. Maaari pong isumite ang inyong nakasulat na kasagutan o depensa sa tanggapan ng opisina ng Provincial Agrarian Reform Adjudicator na mahahanap sa ____________________. Para sa inyong kaalaman, maliban sa alintuntuning sumasaklaw sa pagdinig ng mga aksyong  pagkansela ng EP/CLOA, ibang mga Administrative Order naman ang susundin

September 30, 2011

DAR ADMINISTRATIVE ORDER NO. 07-11 SUBJECT :  Revised Rules and Procedures Governing the Acquisition and Distribution of Private  Agricultural Lands Under  Republic Act (R.A.) No. 6657,  As Amended  PREFATORY STATEMENT

Administrative Order (A.O.) No. 2, Series of 2009, otherwise known as The Rules and Procedures Governing the Acquisition and Distribution of  Agricultural Lands under Republic Act (R.A.) No. 6657, as amended by R.A. No. 9700, is revised to streamline the Land Acquisition and Distribution (LAD) Process of the Department of Agrarian Reform (DAR), strengthen the due process requirement for  Comprehensive Agrarian Reform Program (CARP) coverage, and ensure the completion of land acquisition and distribution within the prescribed period provided in R.A. No. 6657, as amended. CHAPTER 1  Applicability

SECTION 1.  Applicability. — The se rules and  procedures shall govern the acquisition and distribution of: 1. All private agricultural lands covered under Section 4 of R.A. No. 6657, as amended,  but which have not been issued Notices of  Coverage (NOCs); and 2. Private agricultural lands issued with  NOCs but where the list of potential  beneficiaries has not been finalized by the Municipal Agrarian Reform Officer (MARO) concerned as of 1 July 2009. CHAPTER 2  Definition of Terms

SECTION 2.  Definition of Terms. — For purposes of  these Rules, the following terms are defined as follows: A.  Advance Survey Plan (AdSP) refers to the segregation/subdivision survey plan prepared by a licensed geodetic engineer who conducted the survey which is submitted by the DAR to the Land Management Service (LMS) of the Department of Environment and Natural Resources (DENR) for verification and approval to be used as reference in the conduct of the  joint field investigation of the subject lot and in the valuation of landowner's compensation. B.  Approved Survey Plan (ASP) refers to the survey plan verified and approved by the LMSDENR or the Land Registration Authority (LRA). C.  Agrarian Dispute refers to any controversy relating to tenurial arrangements, whether leasehold, tenancy, stewardship, or  otherwise, over lands devoted to agriculture, including disputes concerning farmworkers' associations, or representation of persons in negotiating, fixing, maintaining, changing, or  seeking to arrange terms and conditions of such tenurial arrangements.

It includes any controversy relating to the compensation of lands acquired under R.A.  No. 6657 and other terms and conditions of  transfer of ownership from landowners (LOs) to farmworkers, tenants, and other Agrarian Reform Beneficiaries (ARBs), whether the disputants stand in proximate relation of farm operator and beneficiary, LO and tenant, or  lessor and lessee.

which he/she derives his/her primary source of  income.

D.  Agricultural lessee refers to a person who, by himself and with the aid available from within his immediate farm household, cultivates the land, belonging to or lawfully possessed by another, with the latter's consent, for purposes of  agricultural production, for a price certain in money or in produce or both. The term is distinguished from a civil lessee as understood in the Civil Code of the Philippines.

I.  Installation refers to a series of activities spearheaded by the DAR to achieve the effective possession and peaceful control by ARBs of the awarded land. DaAIHC

E. Civil Society Organizations (CSOs) refers to voluntary organizations or  associations bonded by a common interest which are distinct from the government or the market organizations. For purposes of this A.O., CSOs include farmer organizations, nongovernmental organizations, faith-based organizations, farmer cooperatives, irrigators' association, etc. F. Cooperatives refer to organizations composed primarily of small agricultural  producers, farmers, farmworkers, or other ARBs who voluntarily organize themselves for the  purpose of pooling land, human, technological, financial, or other economic resources, and operate on the principle of one member, one vote. A juridical person may be a member of a cooperative, with the same rights and duties as a natural person. G.  Direct Management , insofar as preferred  beneficiaries are concerned, refers to the cultivation of the land through personal supervision under the system of labor  administration. It shall be interpreted along the lines of farm management as an actual major  activity being performed by the LO's child from

H.  Farmworker refers to a natural person employed by an LO to perform in the subject landholding the cultivation of the soil, planting of crops, growing of fruit trees, harvesting of  farm products, or other similar farm activities and practices.

J.  Landless Beneficiary is any farmer/tiller  who owns less than three (3) hectares of  agricultural land. K.  Newspaper of General Circulation refers to a newspaper or publication of national circulation. L. Other Farmworkers refer to farmworkers who are not regular or seasonal farmworkers. M.  Perimeter Land Use Map (PLUM) refers to the findings of the survey work in which a CARP-covered lot is divided into sub-lots based on existing crop/s and/or land use to produce Perimeter Land Use Map.  N.  Regular Farmworker refers to a farmworker who is employed on a permanent  basis by an LO to do functions that are actually necessary and desirable in the farm operations. O. Seasonal Farmworker refers to a farmworker who is employed on a recurrent,  periodic, or intermittent basis by an agricultural enterprise or farm, whether as a permanent or a non-permanent laborer, such as "dumaan", "sacada", and the like. P. Segregation Survey refers to survey work  conducted by a licensed geodetic engineer  wherein a CARP-covered lot is divided into two

(2) or more sub-lots for coverable and noncoverable areas to produce segregation plan which shall be used as reference for award to co-owners, cooperative or farmer association. Q. Share Tenant refers to a person who himself and with the aid available from within his immediate farm household, cultivates the land belonging to or lawfully possessed by another, with the latter's consent, for purposes of  agricultural production, sharing the produce with the landholder under the share tenancy system, or paying the landholder a price certain or ascertainable in produce or in money or both under the leasehold tenancy system. This arrangement has been abolished by R.A. No. 3844, as amended, which automatically converted the same into an agricultural lease arrangement. R. Subdivision survey refers to survey work  in which a CARP-covered lot is divided into two (2) or more sub-lots for coverable and noncoverable areas, with the former further  subdivided into smaller sub-lots for award to individual ARBs. S. Untenanted land refers to any agricultural landholding which is not the subject of any tenancy agreement. T. Usufruct refers to a real right conferred on the beneficiary/usufructuary to enjoy the fruits of the property of another with the obligation of preserving its form, substance, and  productivity.

 portion of the LAD CARP Extension with Reform (CARPER) balance database, which lists down the LAD balances under the DARMO's area of jurisdiction, and the schedule of coverage of each landholding therein. The generated list of landholdings must be grouped according to the prioritized phasing under  Section 7 of R.A. No. 6657, as amended, and Section 5 of this A.O. At the same time, the DARPO shall provide the MARO with a list of the lands for which NOCs had already  been issued and served. The MARO must continue with the process of land acquisition and distribution, unless the landholding falls under a different schedule as  provided in Section 5 hereof. Landholdings not listed in the LAD CARPER Balance Database may be included in the said database upon issuance of the Provincial Agrarian Reform Officer's (PARO) Certification of Coverage and the Provincial Agrarian Reform Coordinating Committee (PARCCOM) Resolution, duly approved by the LAD Balance Technical Review Committee pursuant to Memorandum Circular (M. C.) No. 8, Series of 2010. SECTION 4. When Lands Deemed Private. — A s a general rule, untitled public alienable and disposable (A & D) lands are within the jurisdiction of the DENR   pursuant to Commonwealth Act (C.A.) No. 141 (Public Land Act). However, such lands are deemed "private" and for coverage by the DAR, if all the requisites specified in R.A. No. 6940, as amended by R.A. No. 9176, for the determination of whether or not private rights over a landholding have already been acquired exist, based on the following: a. Continuous occupancy and cultivation by oneself or through one's predecessors-in-interest on or prior to 04 December 1972; DTEAHI

CHAPTER 3 Coverage: Schedule, Exclusions, and Special Rules

SECTION 3.  LAD CARP Extension with Reform (CARPER) Balance Database and List of Lands with  NOCs. — Upon the effectivity of these Rules, the DAR  Provincial Office (DARPO) shall provide the DAR  Municipal Office (DARMO) with a copy of the relevant

 b. Classification of the land as alienable and disposable on or prior to 04 December  1972; c. and

Payment of the real estate tax thereon;

d. land.

Non-existence of adverse claims on the

In cases where the DAR and DENR have jointly identified specific untitled properties that may be covered under the LAD component of CARP, the DENR-Community Environment and Natural Resources Office (CENRO)/Provincial Environment and Natural Resources Office (PENRO) or Regional Technical Director (RTD)-LMS shall issue the certification that the subject tract of land is within an area classified as A & D. The MARO shall, thereafter, initiate the acquisition process for the landholding concerned. SECTION 5.  LAD Phasing. — The schedule of the acquisition and distribution of lands covered by the CARP shall be, as f ollows: Schedule  Phases  Phase 1 a. All large single private agricultural lands above fifty (50) hectares (with or without Notice of Coverage [NOC])  b. All large aggregate private agricultural lands (PALs) of landowners with a total area greater than 50 hectares with (NOC) as of December 10, 2008 c. P.D. 27 lands (rice and corn), regardless of size d. All idle or abandoned agricultural lands, regardless of size Starting 1 July 2009 up to 30 June 2012 e. All lands offered under Voluntary Offer to Sell (VOS), regardless of size f. Lands covered by Voluntary Land Transfer  (VLT), regardless of size, submitted as of June 30, 2009, subject to the provisions of A.O. No. 8, Series of 2003 g. Government Financial Institutions (GFI) foreclosed lands, regardless of size h. PCGG-acquired lands, regardless of size i. All other government-owned alienable and disposable agricultural lands, regardless of size  Phase 2-A

a. All remaining large single agricultural lands with an area of 24 to 50 hectares (with or without  NOC)  b. All PALs of landowners with an aggregate area of above 24 to 50 hectares with NOC as of  December 10, 2008 c. All agricultural lands provided in the preceding  phase yet to be completed  Phase 2-B a. All remaining PALs of landowners with an aggregate area in excess of 24 hectares with or without NOC  b. All agricultural lands provided in the preceding phases yet to be completed Starting 1  July 2012 up to 30 June 2013  Phase 3-A a. All PALs with an aggregate area of above 10 hectares up to 24 hectares, with respect to the excess above 10 hectares  b. All agricultural lands provided in the preceding phases yet to be completed Starting 1 July 2013 up to 30 June 2014  Phase 3-B a. All PALs with an aggregate area from (Notwithstanding the aforementioned above 5 hectares up to 10 hectares, schedule, in no case may Phase 3-B begin with respect to the excess above on a particular province unless the LAD 5 hectares balance of the same  province that are covered by Phases 1, 2-A, 2-B, and 3-A,  b. All agricultural lands provided in the except lands under the jurisdiction of preceding phases yet to be completed DENR, have been successfully completed.) The Presidential Agrarian Reform Council (PARC) or  the PARC Executive Committee, upon the recommendation of the PARCCOM, may authorize  particular provinces to proceed with the acquisition and distribution of agricultural lands of a particular Phase ahead of its schedule by declaring them as Priority Land Reform Areas, provided that that particular province

has completed the LAD of all the other Phases prior to the one to proceed ahead of schedule. SECTION 6.  Phase of a Co-Owned Landholding. — In case a landholding is co-owned, the following rules shall apply in determining which phase that particular  landholding shall be acquired and distributed: i. if the landholding is co-owned due to the non-settlement of the estate of a deceased LO: the phase shall be based on the aggregate size of  all the landholdings of the deceased LO; aHIEcS ii. if the landholding is co-owned due to other reasons: a. if the aggregate size of all the landholdings of each co-owner  coincidentally belongs to the same  phase: the phase shall be based on the aggregate size of all the landholdings of  one of the co-owners; or   b. if the aggregate size of all the landholdings of each co-owner belongs to different phases: the co-owners, as a group, shall be treated as a single LO for  the sole purpose of determining the  phase that that particular landholding shall be acquired and distributed,  provided that the share of a co-owner to that landholding shall be incorporated in determining his/her/its aggregate size of  landholdings owned to determine the schedule of acquisition and distribution of his/her/its other landholdings. SECTION 7.  Excluded from Coverage. — Excluded from coverage are: a. All undeveloped lands with eighteen  percent (18%) slope and over;  b. All lands duly classified by the proper  Local Government Unit (LGU) as commercial, industrial, or residential as of 15 June 1988;

c. All ancestral lands/domains that may be identified in accordance with rules that may be  jointly issued by the DAR, DENR, LRA, and the National Commission on Indigenous People; d. Retention areas granted to LOs who exercised their retention rights; and e. All agricultural landholdings of a LO with an aggregate size of five (5) hectares or  less. SECTION 8.  Exempted from Coverage. — Exempted from coverage are lands actually, directly, and exclusively used, and found to be necessary for, the following purposes: a.

Parks;

 b.

Wildlife;

c.

Forest reserves;

d.

Reforestation;

e.

Fish sanctuaries and breeding grounds;

f.

Watersheds;

g.

Mangroves;

h.

National defense;

i. School sites and campuses, including experimental farm stations operated by public or   private schools for educational purposes;  j. Seeds and seedlings research and pilot  production centers; k. Church sites and Islamic centers appurtenant thereto; l. Communal burial grounds and cemeteries;

m. Penal colonies and penal farms actually worked by the inmates; n. Government and private research and quarantine centers; o.

Fish ponds and prawn farms; and

 p. Livestock, poultry, and swine raising since 15 June 1988. SECTION 9. Coverage of Previously Exempted   Agricultural Lands. — If any of the private agricultural lands stated in Section 8 hereof is discovered not to be actually, directly, and exclusively used, and/or not necessary, anymore for the purpose for which it is exempted, the PARO shall immediately issue an NOC for the subject landholding or the portions thereof. SECTION 10. Conversion Proceeding Not a Bar to Coverage. — Absent any final order granting conversion, no act or attempt directed to changing the use of the land from agricultural to non-agricultural, shall affect the land's coverage pursuant to the CARP. SECTION 11.  Automatic Coverage of Converted   Lands Not Developed. — Pursuant to Section 65 of  R.A.  No. 6657, as amended, the failure to fully implement the conversion plan within five (5) years from the issuance of DAR conversion order, or any violation of  the conditions of the conversion order, in the event such failure or violation was due to the fault of the applicant, shall cause the land subject thereof to automatically be covered by CARP, subject to the rights of retention. Pursuant to this rule, an ocular inspection of all landholdings subject of a conversion order shall be conducted by the PARO on an annual basis, or  immediately after reports of violations of the conditions of a conversion order are presented before his/her  office. The PARO must prepare and submit a report that contains his/her findings regarding the status of  implementation of the conversion plan and/or existence of violations of the conversion order. This report shall  be sent to the Regional Director (RD) or the Center for  Land Use Policy, Planning, and Implementation (CLUPPI), depending on their jurisdiction per the Rules

on Conversion. The RD or the Secretary, as the case may be, shall take appropriate actions pursuant to the existing implementing rules and regulations on land use conversion. SECTION 12.  DENR Distributed Lands Under  CARP. — Landholdings distributed by the DENR  under R.A. No. 6657, as amended, shall no longer be acquired and distributed by the DAR. SECTION 13.  Agricultural Lands Reclassified to Non Agricultural Uses Before June 15, 1988 but  Subsequently Reclassified to Agricultural Uses are Covered by CARP. — Landholdings within zones classified as non-agricultural before 15 June 1988 but subsequently reclassified as agricultural by the LGU concerned are covered by CARP. Any exemption order  issued therein shall be reviewed by the RD to determine whether the subject landholding is still agricultural in land use, and if found to be such, said exemption order  shall be immediately revoked. An NOC shall thereupon  be issued to the LO. SECTION 14.  Reallocation of Foreclosed Agricultural   Land. — The DAR shall take possession of awarded agricultural lands which were foreclosed for failure to  pay the amortizations for three (3) aggregate years, where the two (2)-year redemption period has already expired by negotiating for redistribution. The Land Bank of the Philippines (LBP) shall certify the lands' availability for reallocation, and the DAR shall identify new ARBs therefor. CHAPTER 4  Notice of Coverage

SECTION 15.  Issuance of Notice of Coverage. — The  NOC shall be issued to the registered landowner (RLO) of the landholding, as stated in the Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT), or, in case of untitled private agricultural lands, the Tax Declaration, preferably not later than one hundred and eighty (180) days prior to the first day of the scheduled date of acquisition and distribution as provided for in Section 5 of this Rule.

In case the RLO stated in the TCT or OCT is different from that stated in the Tax Declaration, the NOC shall  be served to the RLO stated in the TCT or OCT. The NOC must state the periods for the LO to file a  protest on coverage, nomination of preferred  beneficiary/ies, manifestation for exemption/exclusion, and manifestation to exercise the right of retention, as well as to submit a duly attested list of the agricultural lessees, regular farmers, and/or tenants in his/her/its landholding. The NOC must explicitly warn the LO that failure on their part to exercise their right during the said periods shall be regarded as a waiver on their part to exercise these. SECTION 16. Service of NOC. — The NOC shall be served in the following manner: a. Personal Service: The NOC shall be served primarily by personally handing a copy thereof to the "person authorized to receive" as enumerated under Section 17 hereof. Personal service is effected when the person authorized to receive affixes his signature or thumb mark on the receiving copy of the NOC in the presence of a witness who also affixes his signature. Personal service of the NOC shall be done by the Bureau of Land Acquisition and Distribution (BLAD) in the DAR Central Office if the last known address of the person authorized to receive is within Metro Manila, or  the MARO who has jurisdiction over the last known address of the person authorized to receive, if living in a province outside Metro Manila.  b. Substituted Service: If the "person authorized to receive" is not present in his/her  last known address, or refuses to receive the  NOC, the MARO shall immediately avail of  substituted service and serve the NOC by leaving a copy of the NOC at the residence of  the person authorized to receive with some  person of suitable age and discretion residing therein, or by leaving a copy of the NOC at the RLO's office or regular place of business with some competent person in charge thereof.

The MARO shall thereafter immediately  prepare and send a Return of Service of the  NOC to the concerned PARO who has  jurisdiction over the subject landholding the fact of completed/failed substituted service. The PARO shall thereafter immediately inform the BLAD the fact of substituted service and send it a copy of the NOC. The BLAD shall thereafter publish the NOC in accordance with Section 18 hereof. c. Extraterritorial Service: If upon diligent investigation, the MARO who has jurisdiction over the subject landholding finds out that the last known address of the persons authorized to receive is outside the territory of the Philippines, he shall send a copy of the NOC to the last known address of the person authorized to receive abroad by registered mail. The MARO shall immediately prepare and send a Return of Service of the NOC to the concerned PARO and request the latter for the  publication of the NOC through the BLAD. The BLAD shall then cause the publication of the  NOC in accordance with Section 18 hereof. d. Immediate Publication: If the address of  the person authorized to receive is unknown, or  substituted person is not available, the MARO who has jurisdiction over the subject landholding shall immediately file a written report as to the investigation made and the failure to know the address of the LO to the PARO, and the latter shall send a copy of the  NOC to the BLAD. The BLAD shall thereafter  cause the publication of the NOC. Immediate publication shall also be effected if the person authorized to receive the  NOC is that stated in Section 17 (vii) (b) hereof. As such, the PARO who has jurisdiction over  the subject landholding shall also send a copy of  the NOC to the BLAD. The BLAD shall thereafter publish the NOC in accordance with Section 18 hereof.

SECTION 17.  Persons Authorized to Receive. —  Service of the NOC shall be made to the following  persons: i. Service upon the RLO who is a natural  person — The NOC shall be served to the RLO. ii. Service upon co-owners — In case the RLO of the landholding are multiple persons as co-owners, the NOC shall be served upon each and every registered co-owner, unless one is specifically authorized, in a written public document, to receive for the co-owners; iii. Service upon minors — When the RLO is a minor, service shall be made upon his/her  father and/or mother, whoever has lawful custody of the said minor. If the RLO has no  parents, service shall be made upon his/her legal guardian if he/she has one, or, if none, upon his/her guardian ad litem whose appointment shall be applied for by the DAR; iv. Service upon incompetents — When the RLO is insane or otherwise incompetent, service shall be made upon his/her legal guardian if  he/she has one, or, if none, upon his/her  guardian ad litem whose appointment shall be applied for by the DAR; v. Service upon entity without juridical  personality — When the RLOs who are persons associated through an entity without juridical  personality are issued an NOC under the name  by which they are generally or commonly known, service may be effected upon all the RLOs by serving upon any one of them, or upon the person in charge of the office or place of   business maintained in such name, provided that service shall not individually bind any person whose connection with the entity has, upon due notice, been severed before the proceeding was  brought; vi. Service upon domestic private juridical entity — When the RLO is a corporation,  partnership, or association organized under the

laws of the Philippines with a juridical  personality, service may be made on the  president, managing partner, general manager, corporate secretary, treasurer, or in-house counsel; and vii. Service upon the heirs of a deceased RLO — When the RLO has died prior to the service of the NOC, the NOC shall be served to: a. if the settlement of the Estate is currently pending with the court, the Executor or the Administrator of the Estate; or   b. if the settlement of the Estate is not pending with the court or if there is no executor or administrator, the NOC shall be served to all known heirs and shall also be published. SECTION 18.  Publication of NOC. — If any of the circumstances under Sections 16 and 17 requires  publication of the NOC, the NOC shall be published in a newspaper of general circulation.  NOCs required to be published shall be sent by the PARO concerned to the BLAD which shall be responsible for publishing the same. All NOCs sent to the BLAD for publication shall be published on the fifteenth or thirtieth day of the month they were received by the BLAD, whichever is soonest. Service by publication shall be evidenced by the affidavit of the editor-in-chief, or circulation/advertising manager, attesting to the fact of said publication and a copy of the said publication. The publication need not state the entire contents of the NOC but only the following essential particulars: 1. Coverage of the subject landholding under CARP on the specific land acquisition schedule based on the prioritized phasing under  Section 7 of R.A. No. 6657, as amended; 2. OCT/TCT/Latest Tax Declaration No/s. and corresponding area;

3. Complete name/s of the RLO/s and last known address, if available; 4. Address or location of the subject landholding (barangay, city/municipality,  province); and 5. The period for the LO to nominate his/her preferred beneficiary/ies, to submit a duly attested list of tenants, lessees and/or  regular farmworkers, if any, in his/her/its landholding, to file a manifestation to exercise the right of retention, to file a protest on coverage, and to file a manifestation for  exemption/exclusion, as well as the consequences of the failure to exercise these rights during the prescribed period.

submitting a notarized Letter-Offer, in a form that shall  be provided by the DAR, to the PARO where the offered landholding is located. Upon its acceptance by the DAR, the Letter-Offer for  coverage under VOS can no longer be withdrawn. A VOS is deemed accepted by the DAR upon receipt by the LO of the Letter of Acceptance of the PARO. The Letter of Acceptance shall be served to the LO in the same manner as the NOC, as provided by Sections 16 and 18 of this A.O. SECTION 22.  Landholding Under Five (5) Hectares Voluntarily Offered. — The DAR shall not accept the VOS of any LO who owns one or more agricultural landholdings which, combined, has an aggregate size of  five (5) hectares or less.

SECTION 19.  Posting of the NOC. — In all cases, the MARO or any authorized DAR Personnel shall post a copy of the NOC at a conspicuous place at the subject landholding, and ensure that the notice is clearly visible. For this purpose, waterproof and environmentallyfriendly materials, measuring two (2) by three (3) feet, shall be used. The BARC Chairman or his authorized representative shall thereafter issue the corresponding Certification of Posting Compliance.

To ensure this, it is incumbent upon the PARO to verify the extent of the landholdings owned by the LO prior to executing and issuing the letter of acceptance. SECTION 23. VOS to Cover the Entire Area of the  Land Offered. — An LO who wishes to offer his/her/its land under VOS must offer the entire area of the same  parcel of land, subject, however, to the last paragraph of  Section 27 of this A.O.

Additionally, a certified true copy of the NOC shall also  be posted for se ven (7) days at the bulletin board of the Municipal/City Hall and the Barangay Hall where the land covered is located. The Municipal/City Administrator and the Barangay Secretary shall thereupon issue their corresponding Certification of  Posting Compliance.

SECTION 24.  Landholding Owned by a Corporation or Co-Owned. — In case the agricultural landholding is owned by a corporation, the Letter-Offer for coverage under VOS must be filed together with a Resolution by the Corporation's Board of Directors giving specific authority to the person who executed the Letter-Offer to voluntarily offer the landholding.

SECTION 20.  Date of Receipt of NOC. — For RLOs who did not receive the NOC through personal service, the date of posting or the date of publication, whichever  is later, shall be deemed the date of receipt of the same. CHAPTER 5 Voluntary Offer to Sell 

In case the agricultural landholding is co-owned by several persons or is owned by an unsettled estate of a deceased person, the Letter-Offer must be executed by all the co-owners/heirs, except if the person(s) executing the Letter-Offer has/have been specifically authorized in a public instrument by all the coowners/heirs to execute the same on behalf of them.

SECTION 21. VOS Conditions. — LOs may voluntarily offer their private agricultural lands for  coverage under R.A. No. 6657, as amended, by

SECTION 25. When Shifting from CA to VOS   Allowed. — LOs who received NOCs for their  landholdings under Compulsory Acquisition (CA) may

 be allowed to shift to VOS, provided that the Claim Folder (CF) for the subject landholding has not yet been received by the Claims Processing, Valuation and Payment Division (CPVPD) of the Land Bank of the Philippines (LBP) for valuation. The LO may shift to VOS from CA by filing a written Letter-Offer received by the PARO of the area where the land is located. An LO who shifts to VOS who fails to nominate a  preferred beneficiary and to submit his/her duly attested list of tenants, lessees and/or regular farmworkers, if  any, during the thirty (30) day period from receipt of   NOC is disqualified to nominate one and/or is deemed to have waived his right to attest. DaScAI SECTION 26. Voluntary Land Transfer/Direct   Payment Scheme. — Only VLT/DPS applications duly submitted to DAR on or before 30 June 2009 shall be allowed. CHAPTER 6  Retention, Protest of Coverage, Nomination of   Preferred Beneficiary/ies, Application for   Exemption or Exclusion

SECTION 27.  Period to Protest Coverage, Nominate  Preferred Beneficiary/ies, File a Manifestation for   Exemption/Exclusion, and File a Manifestation to  Exercise Retention Rights. — Within a non-extendible  period of thirty (30) days from his/her/its/their receipt of the NOC, the LO may do the following: 1. Protest against coverage, which must be filed before the PARO and should contain the substantial bases thereof; 2. Nominate child/ren who may qualify as  preferred beneficiary/ies; 3. File a Manifestation for Exemption or  Exclusion from CARP coverage before the PARO; and 4. File a Manifestation to Exercise the Right of Retention before the PARO.

The failure to do any of the foregoing within the abovementioned reglementary periods shall be construed as a waiver on the part of the LO of the right to protest coverage, to nominate child/ren as preferred  beneficiary/ies, to file a petition for exemption or  exclusion from CARP coverage, and/or to exercise the right of retention, as the case may be. All protests, nominations, and manifestations/petitions made after  this period shall no longer be accepted. For landholdings under VOS, the LO shall exercise his right of retention and the right to nominate child/ren as  preferred beneficiaries by submitting a notarized notice thereof to the PARO who has jurisdiction over the landholding offered at any time prior to the completion of service of the Letter of Acceptance. The failure to exercise the said rights in this case at the prescribed time shall be construed as a waiver thereof. SECTION 28.  Period to File an Application/Petition  for Exemption/Exclusion. — The Application/Petition for Exemption or Exclusion from CARP coverage may  be filed together with the above-mentioned Manifestation. If it is not filed jointly, the LO can file it, together with the documents required by the rules on exemption or exclusion, within sixty (60) days from receipt of the NOC. Non-submission thereof within this reglementary period shall be construed as a waiver or  abandonment of his/her/its right to file said Petition for  Exemption or Exclusion from CARP coverage with respect to the landholding covered. For landholdings under VOS, the LO is deemed to have waived his/her/its right to file such a Petition for  Exemption or Exclusion from CARP coverage upon DAR's acceptance of his/her/its offer. SECTION 29.  Petition for Protest of Coverage and/or   Petition for Exemption or Exclusion Not Bar to Continue  LAD Process. — Despite the pendency of a protest against coverage or a petition for exemption or  exclusion, the land acquisition process shall nevertheless continue until the issuance of the Memorandum of Valuation (MOV) with the attached Land Valuation Worksheet (LVW) by the LBP, unless otherwise suspended sooner through a Cease and Desist Order (CDO) by the RD or the Secretary.

 Notwithstanding a Petition for  Certiorari filed with the courts, the PARO shall issue and serve the Notice of  Land Valuation and Acquisition (NLVA) and proceed with the rest of the land acquisition and distribution  process thereafter as soon as the protest against coverage or petition for exemption or exclusion has  been denied by the RD, or if appealed, by the Secretary, or if further appealed, by the President of the Republic of the Philippines, unless otherwise ordered suspended  by the Supreme Court. The submission of the Manifestation for Exemption or  Exclusion alone, without the Application/Petition, shall not affect the land acquisition process as provided in this A.O., nor give ground for the issuance of a CDO by the RD or the Secretary. SECTION 30.  Period to Exercise Right of   Retention. — The LO may choose a retention area at the same time that he/she/it manifested to exercise the right of retention. If this is not done at the same time, the LO can choose the area within a non-extendible period of  fifteen (15) days after manifesting his/her/its desire to exercise the said right. In case the landholding is owned by co-owners, or by an unsettled Estate of an LO who died prior to the issuance of the NOC, such co-owners or heirs may only choose a retention area through a joint application executed by all of them, agreeing therein the retention area of each of the said co-owners or heirs, provided that the right of retention of the heirs, in case of an unsettled Estate, shall be subject to Section 37 of this A.O. In case one or more of the co-owners or heirs refuses or fails to join with the others in the application, the rest of the co-owners or heirs may not choose a retention area unless they have partitioned their coownership or the Estate, whichever is applicable. Some or all of the co-owners or heirs may file, together with their manifestation to exercise their right of retention, a manifestation to partition their co-ownership or the Estate. If such manifestation to partition is filed, the coowners or heirs must partition the co-ownership or  Estate and choose a retention area within sixty (60) days from receipt of the NOC. If such manifestation to  partition is not filed, the co-owners or heirs must accomplish such partition and choose a retention area

within the fifteen (15) days allotted to a single LO. EcICSA The failure to choose his/her/its/their desired area within the fifteen (15)-day or sixty (60)-day period, whichever is applicable, shall be deemed a waiver to do so, and shall automatically authorize the MARO to choose the area to be retained. SECTION 31.  Factors to Consider in Choosing   Retained Areas. — When the LO waives his/her/its right to choose the area to be retained, the MARO shall choose, on or before the conduct of the Survey, in the LO's behalf, taking into consideration the following factors: 1. 2. 3. 4.

commodity produced; terrain; available infrastructure; and soil fertility.

As soon as the MARO shall have identified the area, the DAR shall notify the LO, by registered mail with return card, the portion selected as his/her retention area. The same notice shall indicate that the Retained Area chosen may not be contested. SECTION 32.  Retained Area Must be Compact and  Contiguous. — No retention area may be chosen by the LO or the MARO unless such area is compact and contiguous. In case of a co-ownership or an unsettled Estate mentioned in Section 30 hereof, each co-owner or heir  may choose an area not contiguous with that chosen by his/her/its co-owner/co-heir, provided, that if it is the MARO who shall choose the retention area on their   behalf, the retention area of all co-owners/co-heirs must, as far as practicable, be compact and contiguous with each other. SECTION 33. Certificate of Retention. — The PARO shall issue Certifications of Retention to LOs who had already availed of their Retention Rights. LOs who own lands with an aggregate area of five (5) hectares or less may be issued by the PARO a Certification of Retention upon request.

In case the LO opts for the immediate issuance of a title for his/her retention area after the issuance of  Certification of Retention by the PARO, prior to the acquisition process in accordance with the schedule stated in Section 5 of this A.O., he can request, in coordination with the PARO, the Registry of Deeds (ROD) to issue a title in the LO's name on the portion of his/her retained area based on the Owner's Duplicate Copy of title from the LO, Approved Segregation Plan, and technical description, and Certificate of Retention. All fees for the said immediate segregation survey of  the LO's retention area and the issuance of title on the same by the ROD shall be chargeable to the account of  the LO. SECTION 34.  Retention for VOS Lands Prior to 1 July 2009. — For VOS lands submitted prior to 1 July 2009 where the master list of ARBs has been finalized, the retention areas of LOs covered under said VOS shall be  processed under the existing guidelines of R.A. No. 6657, as amended, before July 1, 2009. SECTION 35.  Retention Under Commonwealth  Act No. 141. — Landholdings covered by homestead grants and Fre e Pate nts issue d pursuant to Commonwealth Act (C.A.) No. 141 still owned by the original grantees or their direct compulsory heirs shall be retained by them as long as they were cultivating the said landholdings and continue to cultivate the same. SECTION 36.  Retention under  P.D. No. 27. — LOs or  heirs of LOs not qualified to retain lands under  P.D. No. 27cannot claim retention under R.A. No. 6657, as amended, or even under R.A. No. 9700, over their  landholdings that were covered under  P.D. No. 27. The same LOs or heirs of LOs, however, may still exercise their right of retention over other landholdings that hereafter shall be covered by R.A. No. 6657, as amended. SECTION 37.  Retention of Landowner's Heirs. —  Heirs of deceased LOs who died after 15 June 1988 are only entitled to the five (5) hectare retention area of the deceased LO. SECTION 38.  Retention of Spouses. — For marriages ed by the Conjugal Property of Gains Regim

spouses whose agricultural lands are all conjugal in nature may retain a total of not more than five (5) hectares of such properties. However, if either or both of them are LOs in their own respective rights (capital and/or paraphernal), they may each retain not more than five (5) hectares of their respective landholdings. In no case shall the total retention area of such couple exceed ten (10) hectares.

landholdings and subject to the priorities under Section 22 of R.A. No. 6657, as amended.

For marriages covered by the Absolute Community of  Property Regime, the spouses, together, may retain not more than five (5) hectares. All properties (capital,  paraphernal, and conjugal) shall be considered to be held in absolute community,i.e., the ownership relationship is one, and, therefore, only a total area of  five (5) hectares may be retained by the couple.

SECTION 40.  DAR Clearance on Land  Transactions. — Land transactions executed prior to 15 June 1988 shall be valid only when registered with the Registry of Deeds on or before 13 September 1988 in accordance with Section 6 of  R.A. No. 6657, as amended.

For marriages covered by a Complete Separation of  Property Regime, each of them may retain not more than five (5) hectares of their respective landholdings. The property regime of a married couple whose marriage was celebrated prior to 03 August 1988 shall  be presumed to be the Conjugal Property of Gains, unless otherwise stated in a valid marriage settlement. The property regime of those whose marriage was celebrated on or after 03 August 1988 shall be  presumed to be the Absolute Community of Property, unless otherwise stated in a valid marriage settlement. SECTION 39. Tenant Chooses to Remain in the  Retention Area. — In case a tenant chooses to remain in the LO's retained area, the former shall be a leaseholder  in the said land and shall not qualify as a beneficiary under CARP. Conversely, if the tenant chooses to be a  beneficiary in another agricultural land, he/she cannot  be a leaseholder in the land retained by the LO. The tenant must exercise this option within a period of one (1) year from the time the LO manifests his/her choice of the area for retention. Tenants/lessees in the retained areas who do not wish to  become leaseholders in the retained lands shall be given  preference in other landholdings whether or not these lands belong to the same LO, without prejudice to the farmers who are already in place in said other 

In all cases, the security of tenure of the farmers or  farmworkers on the LO's retained land prior to the approval of R.A. No. 6657, as amended, shall be respected. Further, actual tenant-farmers in the landholdings shall not be ejected or removed therefrom.

With respect to those executed on or after 15 June 1988, where the transfer/sale of a landholding involves a total area of five (5) hectares and below and such landholding is the retention area of or subject of  retention by the transferor, and where the transferee will not own an aggregate area of more than five (5) hectares as a result of the sale, the transfer is legal and  proper. However, a DAR clearance is needed for  monitoring purposes and as a requisite for the registration of the title in the name of the transferee with the ROD. With respect to LOs who have yet to exercise their right of retention, where more than five (5) hectares of the landholding is sold or transferred, whether through a single transaction, multiple transactions, or a series of  transfers/sales, only the first five (5) hectares sold/conveyed and the corresponding titles therefor  issued by the ROD in the name of the transferee shall  be considered valid and treated as the transferor's retained area, but in no case shall the transferee exceed the five (5)-hectare landholding ceiling pursuant to Sections 6, 70, and 73 (a) of R.A. No. 6657, as amended. Insofar as the excess area beyond the five (5) hectares sold and conveyed is concerned, the same shall  be covered under CARP, regardless of whoever is the current title-holder to the land, and even if the said current title-holder owns less than five (5) hectares of  agricultural landholding, considering that the transferor  has no right to dispose of these lands since CARP coverage of these lands is mandated by law as of 15 June 1988. Any landholding still registered in the name

of the LO after ea rlier dispositions up to an aggregate of  five (5) hectares are no longer part of his retention area and therefore shall be covered under CARP.

Where agricultural lands have been subjected to expropriation, the ARBs therein shall be paid just compensation.

In cases where there has been an improper, invalid, or  unlawful transfer, the NOC shall be sent to the last lawful owner of the landholding and to such person who is registered as the owner of the same, and its coverage shall be done in accordance with the pertinent guidelines on the matter.

CHAPTER 7  Farmer Beneficiary Identification, Screening and  Selection

SECTION 41. Conditions for LGU Retention Limit   Exemption. — CARP covered agricultural lands which are to be expropriated or acquired LGUs for actual, direct, and exclusive public purposes, such as roads and  bridges, public markets, school sites, resettlement sites, local government facilities, public parks, and barangay  plazas or squares, consistent with the approved local government land use plan, shall not be subject to the five (5)-hectare retention limit. However, prior to the expropriation/acquisition by the LGU concerned, the subject land shall first undergo the land acquisition and distribution process of the CARP, and the ARBs therein shall be paid just compensation without prejudice to their qualifying as ARBs in other landholdings under  the CARP. SECTION 42.  Agricultural Lands Subject of   Expropriation. — Pursuant to Section 6-A of  R.A. No. 6657, as amended, an LGU may, through its Chief  Executive and/or pursuant to an ordinance, exercise the  power of eminent domain on agricultural lands for   public use, purpose, or welfare of the poor and the landless, upon payment of just compensation to the ARBs on these lands, pursuant to the provisions of the Constitution and pertinent laws. The power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the ARBs, and such offer was not accepted. In cases where the land sought to be acquired has been issued with an NOC or is already subject to VOS (with a letter-offer submitted to DAR), the concerned LGU shall suspend the exercise of  its power of eminent domain until after the LAD  process has been completed and the title to the property has been transferred to the ARBs.

SECTION 43. Who are Qualified Beneficiaries. —  Farmers/Tillers and farmworkers who meet the following qualifications shall be eligible as  beneficiaries under the Comprehensive Agrarian Reform Program: a.  be:

General Qualifications. All ARBs must

i. A farmer/tiller who owns less than three (3) hectares of agricultural land; TDEASC ii. A Filipino citizen; iii. A resident of the barangay (or the municipality if there are not enough qualified ARBs in the barangay); iv. At least fifteen (15) years of age at the time of identification, screening, and selection of farmer-beneficiaries; and v. Willing, able, and equipped with the aptitude to cultivate and make the land productive.  b. Specific Qualifications for Regular  Farmworkers in Commercial Farms and Plantations. In case the subject landholding is a commercial farm or plantation, in addition to the General Qualifications stated above, the applicant must be employed in the landholding covered under CARP to be deemed a regular  farmworker. All farmworkers who are holding managerial or  supervisory positions as of the issuance of the NOC shall not qualify as ARBs. However, farmworkers who were promoted to managerial or supervisory positions after they were identified, screened, and selected shall remain as qualified ARBs.

SECTION 44.  Disqualification of a Landowner Mortgagor from Being an ARB. — A landownermortgagor, including his/her children, of a foreclosed agricultural land where the redemption period has already expired and which land is to be subsequently covered under CARP, cannot qualify as an ARB on the foreclosed land, notwithstanding his/her/their being in actual possession and cultivation thereof. The former LO/actual occupant and his/her children may reacquire the foreclosed landholding through normal banking transactions up to a maximum of five (5) hectares each, and if there is any excess, the same shall be covered under CARP in the name of the foreclosing bank for distribution to qualified ARBs. SECTION 45.  Prioritization of  Beneficiaries. — Qualified beneficiaries  prioritized in the following order:

Qualified  shall be

i. Agricultural lessees and tenants; ii. Regular farmworkers; iii. Seasonal farmworkers; iv. Other farmworkers; v. Actual tillers or occupants of public lands, only insofar as untitled private agricultural lands are concerned; and vi. Others directly working on the land. For the purpose of the prioritization listed herein, agricultural lessees described in Section 47 hereof are deemed tenants of the area they selected. SECTION 46.  Farmer Children of Landowner as  Preferred Beneficiaries. — Pursuant to existing rules and regulations, the child of an LO shall be given  preference in the distribution of his/her parent's land  provided he/she meets all of the following criteria: i. Filipino citizen; ii. At least fifteen (15) years of age as of  the issuance of 15 June 1988; and iii. Actually tilling or directly managing the farm as of the time of the conduct of the field investigation of the landholding under CARP.

In no case may the distribution of lands to preferred  beneficiaries deprive each of the agricultural lessees and tenants of being awarded the portion of the landholding they are actually tenanting/leasing, which in no case shall be more than three (3) hectares. SECTION 47. Tenants of Retained Areas as Priority  Beneficiaries. — An agricultural lessee or tenant of a  portion of a landholding chosen as a retained area who opted not to stay therein as a tenant may choose any CARP-covered landholding which is not entirely tenanted and manifest to the PARO which has  jurisdiction over the said landholding his intention to be a beneficiary thereof. The PARO shall consider such agricultural lessee or tenant, duly attested by the retaining LO, as priority in the selection, subject to the rights of those who are already in place. SECTION 48.  Landowners Availing of VOS are  Disqualified to be ARBs. — LOs who have voluntarily offered their landholdings for coverage under CARP, and those who have previously waived their rights to retain, are disqualified from becoming ARBs of other  landholding/s being covered or to be covered under  CARP. The LO's voluntary offer or his previous waiver  is construed to be an inability and/or unwillingness to cultivate the land and make it productive. SECTION 49.  Disqualification of ARBs. — The following are grounds for the disqualification of ARBs of the CARP: a.) Failure to meet the qualifications  provided under Section 22 of R.A. No. 6657, as amended;  b.) Voluntary execution of a waiver of right to become an ARB in exchange for due compensation, and such waiver has not been questioned in the proper government entity as of  the effectivity of this A.O.; c.) Deliberate and absolute failure of the ARB to pay an aggregate of three (3) annual amortizations to the LBP and subsequent failure to exercise the right of redemption/repurchase within two (2) years, provided an amortization

table has been issued to the ARB, and provided further that the amortizations shall start one (1) year from the ARB's actual occupancy pursuant to Section 26 of  R.A. No. 6657, as amended; d.) Deliberate and absolute non-payment of  three (3) consecutive amortizations in case of a voluntary land transfer/direct payment scheme,  provided that the ARB has been installed and is in actual possession of the land, and provided further that the last proviso will not apply if the non-possession of the ARB is attributable to his or her own fault; e.) With respect to commercial farms, termination from the service for cause as of the date of effectivity of this A.O., unless a complaint for illegal dismissal regarding the said termination is pending, in which case the termination must be affirmed with finality by the proper entity of the government; f.) Voluntary resignation or voluntary retirement from the service, provided this was not attended by coercion and/or deception, and there is no case questioning said voluntary retirement or voluntary resignation by the applicant as of the date of effectivity of this A.O.;

virtue of being such beneficiary, in order to violate or circumvent the provisions of Sections 27 and 73 of R.A. No. 6657, as amended  by R.A. No. 9700, P.D. No. 27, and other  agrarian laws; k.) Premature conversion by the ARB  pursuant to Section 11 of R.A. No. 8435; l.) Final judgment for forcible entry or  illegal detainer by persons who are originally not qualified beneficiaries as agrarian reform  beneficiaries, the unlawful entry of which would have allowed them to avail the rights and  benefits of an agrarian reform beneficiary; m.) With respect to foreclosed landholdings, the LO thereof and/or his children, but only insofar as the same foreclosed landholding is concerned; and n.) Commission of any violation of the agrarian reform laws and regulations, or related issuances, as determined with finality after   proper proceedings by the appropriate tribunal or agency.

i.) Material misrepresentation of the ARB's  basic qualifications under Section 22 of R.A.  No. 6657, as amended by R.A. No. 9700, P.D.  No. 27, and other agrarian laws;

SECTION 50.  Period to Prepare and Submit the Duly  Attested List of Tenants, Lessees and/or Regular   Farmworkers. — Within a non-extendible period of  thirty (30) days from receipt of the NOC, the LO must submit to the MARO, furnishing a copy to the PARO, a duly attested list of all his/her tenants, agricultural lessees, and regular farm workers, in his/her  landholding at the time of the issuance of the NOC. The list shall be submitted with a sworn statement that to the  best of his personal knowledge and based on all documents in his possession, all those listed are tenants, lessees, and/or regular farm workers in his/her  landholding, and that he/she has not omitted any tenants, agricultural lessees, and/or regular farm workers from the said list.

 j.) Sale, transfer, lease, or any other form of  conveyance by a beneficiary of the right of  ownership, right to use, or any other  usufructuary right over the land acquired by

The LO must also attest whether or not the subject landholding is a subject of a civil law lease. If it is, the attested list must contain both his/her/its regular  farmworkers and those of his/her/its civil law lessees.

g.) Misuse or diversion of financial and support services extended to ARBs pursuant to Section 37 of R.A. No. 6657, as amended; h.) Negligence or misuse of the land or any support extended by the government as provided in Section 22 of R.A. No. 6657, as amended;

The failure to submit the duly attested list and the sworn statement during the abovementioned reglementary  periods shall be construed as a waiver on the part of the LO to exercise his attestation rights as regards the tenants, lessees, and regular farmworkers in his/her  landholding. Furthermore, the LO's failure or refusal to submit the attested list shall not, in any way, delay the LAD  process. SECTION 51.  ARB Selection for Untenanted Lands. —  For untenanted land, all the farmers/tillers/farmworkers therein who qualify under the existing guidelines on the identification, screening, and selection of ARBs, shall  be considered as potential beneficiaries of the land,  provided that the proportional share of each will not exceed three (3) hectares; otherwise, additional farmworkers shall be considered. For unoccupied lands, each qualified landless farmer  shall be allowed the award ceiling of three (3) hectares. SECTION 52.  ARB Selection for Commercial   Farms/Plantations. — For the purpose of screening and selection of qualified ARBs in commercial farms/plantations, all concerned PAROs shall create a Beneficiary Screening Committee (BSC) whose members shall be composed of the PARO as the ExOfficio Chairperson, the MARO, the DARPO Legal Officer, the Provincial Agrarian Reform Coordinating Committee (PARCCOM) Chairperson or his representative, and the Barangay Agrarian Reform Committee (BARC) Chairperson, or if there is no BARC, the Barangay Council Chairperson, of the area where the landholding is located or his representative,  pursuant to DAR A.O. No. 7, Series of 2003. The Master list of ARBs prepared by the BSC must be certified as correct and accurate by the BARC or, if  there is no BARC, the Barangay Council. The BSC may invite the LO/s and/or civil society organization (CSO) representatives in the area to serve as resource persons in the ARB selection and screening  process, as may be necessary.

The BSC shall exercise jurisdiction in the screening and selection of ARBs in commercial farms for collective distribution to ARBs. The procedure enumerated in Sections 55 and 56 of this A.O. shall apply. SECTION 53.  Preliminary List of Potential ARBs for   Non-Commercial Farms/Plantations. — Within three (3) days from his receipt of the LO's attested list of  lessees, tenants and/or regular farmworkers or after the lapse of the thirty (30)-day period for the submission of  said attested list, the MARO together with the BARC shall prepare the preliminary list of potential qualified ARBs of the subject landholding, clearly stating therein whether a qualified ARB is classified as a lessee, tenant, regular farmworker, seasonal farmworker, other  farmworker, actual tiller or occupant of public land (only insofar as untitled private agricultural landholdings are concerned), or others directly working on the land. The MARO shall post the preliminary list of potential ARBs for seven (7) days at the subject landholding and ensure that the list is clearly visible to general public. For this purpose, waterproof and environmentally-friendly materials, measuring two (2)  by three (3) feet, unless a larger one is deemed necessary, shall be used. Additionally, the preliminary list shall also be posted for seven (7) days at the bulletin boards of the Municipal/City Hall and the Barangay Hall where the land covered is located. The MARO or such other authorized DAR personnel shall include in the CF a report stating the fact and date and time of the posting thereof at the bulletin boards of  the Municipal/City Hall and at the Barangay Hall, as well as at the premises, which report shall be accompanied by a certificate of posting (containing, among others, the date when the notice was posted at said bulletin boards and premises) to be executed by the Municipal/City Administrator, the Barangay Secretary, and the BARC concerned, respectively. Within seven (7) days from the last date of posting, all  potential ARBs whose names appear on said  preliminary list must submit essential documents to  prove his/her qualification as an ARB as provided in Section 43 of this A.O. The potential ARBs are as responsible as the DARMO in proving their own

qualification. The preliminary list of potential ARBs must also state instructions as to the submission of  written requests and other documentary proof. Aside from the documents submitted by a potential ARB, the DARMO shall use available documentary evidence at hand, if any, and exhaust all efforts to gather the necessary information/evidence as bases in the evaluation of the potential ARB's qualifications and inclusion in the said list. The preliminary list must also include instructions to farmers and farm workers not listed in the preliminary list as to how they can prove that they are qualified. Such farmers and farm workers who believe that they are qualified ARBs, but whose names are not included in the preliminary list must signify their intent to be included and submit documentary requirements within seven (7) days from the last day of the posting of the  preliminary list. SECTION 54. Screening and Selection of Qualified   Beneficiaries. — Upon receipt of the application and documentary requirements, the MARO together with the BARC shall screen and select qualified beneficiaries  pursuant to Section 22 of R.A. No. 6657, as amended, in a particular landholding. The BARC shall certify the Master List under oath within five (5) days after the screening and selection. The BARC certified Master  List shall be provided to the PARO for the latter's approval. SECTION 55. Service and Posting of the Master   List. — The Master List approved by the PARO shall be served by the MARO or any DAR personnel authorized  by the PARO, personally or by registered mail, to all those named therein and to all persons listed in the  preliminary list but is not included in the approved master list. The Master List shall clearly state whether a qualified ARB is classified as a lessee, tenant, regular  farmworker, seasonal farmworker, other farmworker, actual tiller or occupant of public land (only insofar as untitled private agricultural landholdings are concerned), or others directly working on the land. It shall also provide the length of service or tenure, in days, of each of the said qualified ARBs.

The Master List shall be accompanied by a notice to the qualified ARBs listed therein that they will be required to execute and sign the APFU and that failure to do so shall be considered a waiver of their right to  become beneficiaries of the landholding. The Master List approved by the PARO shall also be  posted by the MARO or any other DAR personnel authorized by the PARO for seven (7) days at the Barangay Hall where the landholding covered is located. In addition to the foregoing, the MARO or such other DAR personnel authorized by the PARO shall simultaneously cause the production and installation of  a billboard, preferably made of tarpaulin or any visible waterproof and environmentally-friendly material, of  said Master List, measuring two (2) by three (3) feet, unless a larger one is deemed necessary, at a conspicuous location within the premises of the landholding. The MARO or such other DAR personnel shall include in the CF a report stating the fact and date and time of the posting thereof at the bulletin board of  the said Barangay Hall and at the premises, which report shall be accompanied by a certificate of posting (containing, among others, the date when the notice was  posted at the bulletin board) to be executed by the Barangay Secretary concerned. SECTION 56. Compulsory Arbitration. — Within fifteen (15) days after the posting of the BARC Certified Master List, the LO or any of the potential  beneficiaries may file a written protest thereon. The  parties concerned, specially the persons to be excluded shall be duly notified by the PARO of the proceedings and the decision. The PARO shall conduct compulsory arbitration within ten (10) days from receipt of said  protest to resolve the same. The PARO's decision shall  be final insofar as the Master List is concerned, copy of  which shall be furnished to the parties concerned. In case the decision of the PARO in the arbitration results into an amendment of the Master List, the amended list shall be posted again for another seven (7) days in the manner and places provided by Section 55 of this A.O. SECTION 57.  PARO's Authority on  Inclusion/Exclusion Protest. — The BARC Certified Master List of qualified ARBs becomes final after the

lapse of fifteen (15) days from issuance of the PARO's decision on the protest and receipt of the same by the  parties. The authority of the PARO to decide is specifically limited to protests and petitions on the ARBs' qualifications to be included in the BARC Certified Master List. After this phase, other issues related to the ARBs' qualifications under specific issuances shall be filed as an agrarian law implementation (ALI) case to the RD. Any person who disagrees with the PARO's decision/s or order/s for inclusion/exclusion of potential ARBs in/from the Master List may file a verified petition for  inclusion/exclusion against the ARBs therein in accordance with existing ALI rules. SECTION 58.  Filing of Inclusion/Exclusion Petition with the RD within 1-year from Registration of RP  Title. — The filing of a verified petition for  inclusion/exclusion against the ARBs before the RD must be initiated within one (1) year from the registration of the Republic of the Philippines (RP) title, or, in case the landholding is untitled, from the issuance of the COD. A petition for inclusion/exclusion filed  beyond said one (1)-year period is already barred and must be dismissed. SECTION 59.  Distribution Pending   Inclusion/Exclusion. — In case an action for   inclusion/exclusion of qualified beneficiaries is  pending, the distribution process shall nevertheless continue. If the action for inclusion/exclusion is still pending at the time that the Certificates of Landownership Award (CLOAs) are to be generated, the ARBs shall be notified by the MARO on or before the date of the generation of the CLOAs that the land allocated may still change depending on the final conclusion of the aforementioned action. The PARO shall annotate on the  back of the CLOA that the award is not yet final until such time that a final and executory decision has been rendered on the pending inclusion/exclusion case. This annotation shall be removed by the PARO in his own instance upon the termination of the said case.

SECTION 60.  ARB's Oath Before the Judge. — The ARBs who qualify under the screening process shall state under oath before the judge of the city or  municipal court that he/she is willing to work on the land to make it productive and to assume the obligation of paying the amortization for the compensation of the land as well as the land taxes thereon as stipulated in the Application to Purchase and Farmer's Undertaking (APFU). The MARO shall arrange a schedule and transportation for the ARBs to take this oath before the  judge or the judge to go to the places of the ARBs. ARBs in the Master List who fail or refuse to execute and sign the APFU shall be given thirty (30) days from the date of receipt thereof to sign it. The failure to sign the same within the said thirty (30) days shall be considered a waiver of the right to become an ARB. Due notice shall be given to the concerned parties stating the consequence of such failure to sign and execute the APFU within the prescribed period. Such notice shall be served together with the Master List, as  provided in Section 55 of this A.O. ISHCcT CHAPTER 8  Land Acquisition

SECTION 61.  Leaseholders Continue to Pay Rentals  Before COD. — For tenanted lands or lands under  leasehold, the ARBs shall continue to pay their lease rentals as tenants/lessees based on their leasehold contracts until such time that the LBP issues a COD. SECTION 62. CARP Volume. — The current list of all lands covered by NOCs and all remaining unacquired and undistributed landholdings covered under CARP, including those covered by conversion orders but deemed to have been reverted into agricultural lands due to the failure of the LOs to comply with the conditions thereof, as well as those which are in the  process of acquisition and distribution or will be acquired based on the schedule of priorities under  Section 7 of R .A. No. 6657, as amended, shall be submitted by the DARPO to the ROD concerned for  segregation of the corresponding original copy of the Certificates of Title of all these lands from the regular  volume or files of the Registry, and for the compilation of the same in a new separate volume (CARP Volume) until the customary number of titles constituting a

regular volume is reached. This CARP Volume shall be treated as a restricted volume, and any voluntary transaction on any of the titles included in this restricted file shall be subject to clearance in writing from the PARO. The maintenance of the CARP Volume shall be undertaken by the LRA-CARP personnel under the supervision of the ROD. Any certificate of title contained in the CARP Volume shall only be returned to the general/regular file upon  proof that the property covered by said title is exempted, excluded, or ascertained to be outside CARP coverage. Such proof may be in the form of a Court Order or DAR Order which has become final and executory. SECTION 63. Validation and Projections of   Landholdings Subject to Acquisition. — Landholdings subject of acquisition shall be validated based on ownership documents and on the projection by the DAR  on DENR land classification maps to determine whether or not the areas are alienable and disposable. All projections undertaken by the DARPO on land titles, whether administratively or judicially (where the survey was based on the cadastral map of the DENR) issued, shall be confirmed or validated by the DENRCENRO/PENRO as to the land classification status of  said lands. The projections should be prioritized by the PARO and may be done even prior to the issuance of   NOC. All projections undertaken by the DARPO on lands covered by judicially issued titles and whose survey was based on the Private Survey (PSU) Plan of the LRA shall be confirmed or validated by the LRA that these lands do not overlap with other titled or decreed  properties. Titles judicially issued prior to 1919 based on Act No. 2874 need not be validated or confirmed by the DENRCENRO/PENRO as to their land classification status, as such lands are classified as alienable and disposable. However, the DARPO, through the Bureau of Land Development (BLD), shall obtain a Certification from the LRA that the subject property does not overlap with a titled or decreed property. Such certification shall include, among others, the Judicial Decree number, date

of issuance of Decree, name of adjudicatee, location, and area. SECTION 64. Segregation of Overlapping Titles. —  Such properties that partially overlap with other titled or  decreed properties shall be segregated accordingly during the conduct of the survey on the landholdings subject of acquisition. The acquisition and distribution of such landholdings with an area of more than five (5) hectares that either partially or fully overlap with decreed properties shall continue regardless in whose name the decree has been issued. SECTION 65. Survey Activities Before Field   Investigation. — The conduct of the survey to determine land use, the segregation of coverable and not coverable areas, and the subdivision survey shall be undertaken prior to Field Investigation (FI). The PARO shall ensure that all field survey activities shall be completed before the conduct of FI. A licensed geodetic engineer must participate in the survey. SECTION 66.  Discrepancy in Area or Size. — In case the area or size of the landholding stated in the TCT or  OCT is different from that stated in the Tax Declaration, the area stated in the TCT or OCT shall be controlling and shall be deemed the correct one. In cases of untitled private agricultural landholdings, if  there is a discrepancy as to the area or size between the findings on the survey and that in the Tax Declaration, the results of the survey activities shall be deemed the correct one. SECTION 67. Utilization of LUMD Fund. — The Land Use Management and Development (LUMD) Fund shall be released and utilized only for CARP covered lands with Requisition Survey Services (RSS) approved by the PARO, with a copy thereof furnished to the BLD, pursuant to existing guidelines on requisition, approval, and monitoring of survey services. SECTION 68. Conduct of the Field Investigation. —  If the Survey was conducted prior to the FI and the Master List has already been finalized, the DARPO shall, within three (3) days from the accomplishment of 

the Survey, submit a request for the conduct of an FI of  the landholding to the LBP. Attached to the request shall be the finalized Master List of ARBs, the PLUM, and either the ASP or, if the DAR has not yet been furnished the ASP by the LMS, the AdSP. The DARPO shall identify, notify, and invite the LO and the ARBs, through a Notice, to the conduct of the FI. The Notice must be served by the MARO no later  than (15) days prior to the scheduled date of the conduct of the FI. Proof of service shall be included in the CF. The failure of the LO or the identified ARB to  participate in the FI, despite being notified, shall be a waiver on their part to question the findings thereof. The FI shall be accomplished to verify the reports currently contained in the CF for the purpose of its valuation. It shall be conducted jointly by the MARO, a member of the BARC, and representatives of the LBP. A representative of the Municipal/Provincial Agricultural Office shall be invited if there is an issue on the suitability of the landholding for agriculture. A representative from the DENR-CENRO/PENRO shall  be invited whenever there is any issue as to the slope. As a rule, there should be at least three (3) concrete cylindrical monuments (also referred to as "Mojon") and/or natural boundary points remaining at the landholding at the time of the said investigation. This is to ensure that the landholding being investigated is the same as that indicated in the AdSP. In such case, the FI may be conducted even in the absence of a geodetic engineer. In the event, however, that there are less than three (3) monuments and/or natural boundary points remaining at the site, then the FI may not be conducted unless it is done with the participation of a licensed geodetic engineer. SECTION 69.  Preparation and Transmittal of the CF. — After the execution of the Field Investigation Report (FIR) and the APFU, the DARMO shall transmit the CF to the DARPO. The CF must be submitted within three (3) days after its completion, which may not be later than fifteen (15) days after the execution of  the FIR or the APFU, whichever is later. The PARO shall then endorse and transmit the CF to the DAR-LBP Pre-Processing Unit (PPU). The PPU shall have three

(3) days to verify the contents of the CF after which it shall transmit the same to the LBP. An AdSP shall be included in the CF in lieu of the ASP, if the said ASP is the only item not available for the completion of the CF. The LBP may thereafter begin its process of  determining the value of just compensation, on the basis of the ASP, or, in its absence, the AdSP. SECTION 70.  Acquisition May Proceed Pending Case of Inclusion/Exclusion of ARBs. — In the event the finalization of the Master List of the ARBs will necessitate the resolution of petitions for inclusion and exclusion of the ARBs therein, the PARO shall inform the LBP regarding the matter, in which case, the conduct of the subdivision survey will come after the FI or upon the finalization of the Master List of the ARBs so as not to delay the land acquisition process. Consequently, the LBP shall proceed with the  preparation and release of the MOV to the PARO. SECTION 71. Submission of the Approved Survey  Plan. — The PARO shall submit the ASP to the LBP within three (3) days from its receipt thereof from the LMS. If the ASP is not different from the AdSP included in the CF, then the LBP may determine the initial valuation of the covered landholding. If the ASP/AdSP is different from the findings in the FIR, a resurvey must be conducted to allow the ASP/AdSP to conform with the findings in the FIR.  No MOV may be issued by the LBP prior to its receipt of the ASP. SECTION 72. Valuation by the LBP. — The LBP shall determine the initial valuation of the covered landholding in accordance with Chapter 10 of this A.O., other issuances of DAR, and LBP's own internal rules. It shall inform the DAR of its initial valuation, including the computation and factors from which the initial valuation was arrived at, by submitting to the PARO an MOV. An LVW shall be attached to, and form an integral part of, the MOV.

Certified true copies of the contents of the CF of the LBP that did not originate from DAR with respect to the LO of the subject landholding, except internal memoranda and other documents therein deemed confidential by the LBP, shall be transmitted by the LBP to the PARO at the same time that it transmits the MOV or within seven (7) days thereafter. The DAR  shall reimburse the LBP for the cost of its reproduction of the said contents. SECTION 73.  Period to Issue and Serve the Notice of  Valuation and Acquisition. — Within three (3) days after the PARO receives the MOV with the LVW and the copy of the abovementioned contents of the CF from the LBP, he/she shall immediately issue the  NLVA attached thereto a copy of the MOV with the LVW, transmit the same to the MARO, and direct the latter to serve the NLVA and MOV with the LVW to the LO within five (5) days from his receipt thereof, in the manner provided in Section 74 hereof. The addresses of the LBP and the Provincial Agrarian Reform Adjudicator (PARAD), Regional Agrarian Reform Adjudicator (RARAD), and the Department of  Agrarian Reform Adjudication Board (DARAB) must  be stated in the NLVA. SECTION 74. Service of NLVA. — If the LO was served with the NOC through personal or substituted service, or, regardless of the type of service, in case the DAR has already ascertained the address of the LO, the  NLVA and MOV with the LVW shall be served to the LO by Registered Mail. The registered mail envelope shall be marked "Deliver to Addressee Only" and "Return to Sender" based on the possibilities that the LO has moved out, address is erroneous or insufficient, or the LO refuses to accept or receive the mailed  NLVA. If the address of the LO is unknown despite substantial investigation by the DAR, or if the registered mail was sent back to the PARO or remained unserved for fifteen (15) days or more, the PARO shall effect the  publication of a Notice in a newspaper locally circulating within the locality both where the subject landholding is located and the last known address of the LO. The Notice shall state the name of the LO, the location of the landholding, the fact that the landholding

has been valued and is to be acquired, a notice that the LO may inspect and obtain a copy of the NLVA from the PARO and the BLAD, and that the LO has thirty (30) days from the date of publication to accept or reject the valuation otherwise it shall be deemed rejected. The address of the PARO and the BLAD shall be indicated in the same Notice. SECTION 75.  Notice of Land Acquisition to be Posted  at the Site of the Land Holding, the Barangay, and the  Municipal/City Hall. — A Notice stating that the landholding is to be acquired by the DAR shall be  posted by the MARO, or any authorized personnel of  the DAR, at a conspicuous location at the site of the landholding and on the bulletin boards of the Barangay Hall and the Municipal/City Hall where the land covered is located within five (5) days from his receipt of the same. The Notice shall state the name of the LO and the location of the landholding. In case the circumstances requiring publication in Section 74 hereof is present, the Notice to be posted shall also state that the LO may inspect and obtain a copy of the NLVA from the PARO and the BLAD, and that the LO has thirty (30) days from the date of publication to accept or  reject the valuation otherwise it shall be deemed rejected. The Barangay Secretary and Municipal/City Administrator, respectively, shall thereupon issue the corresponding Certification of Posting Compliance. The failure to post this Notice shall not be a ground for  the LO to contest the acquisition process, insofar as he/she/it has received the NLVA or the NLVA has been  published. SECTION 76.  Acceptance, Rejection, or Failure to  Reply by the LO. — The LO must file a written letter of  acceptance or rejection to the PARO within thirty (30) days from his/her/its receipt of the NLVA, or from the date of posting, whichever is later. The PARO shall, upon acceptance, rejection, or lapse of  the thirty (30) day period, submit a notice to the LBP stating the action of the LO.

In case the valuation was rejected by the LO, or there was no written letter of acceptance or rejection filed within the thirty (30) day reglementary period, the valuation shall be resolved administratively by the DARAB or Adjudicator concerned in accordance with its rules, without prejudice to the right of the LO to question the valuation of the DAR and LBP with the  proper Special Agrarian Court (SAC). As such, the PARO shall, within three (3) days from receipt of the rejection letter or from the end of the thirty (30) day reglementary period, advise the DARAB/Adjudicator to conduct administrative proceedings by transmitting a Certified True Copy of the entire contents of the CF, together with either a copy of the rejection letter or a Memorandum stating that no reply was received from the LO within the thirty (30) day period, whichever is applicable, to the appropriate Adjudicator or the DARAB, indicating in a transmittal letter that the valuation has been rejected by the LO. SECTION 77. Transmittal of the Order to Deposit   Landowner Compensation. — The PARO shall, at the same day of its transmittal of the NLVA to the MARO concerned, transmit its Order to Deposit Landowner's Compensation to the LBP. The delay of the posting of  the Notice provided by Section 75 of this A.O. shall not suspend the transmittal of the Order to Deposit Landowner's Compensation to the LBP and any other   procedure hereof. SECTION 78. Service of the COD and Request for   Registration. — 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. SECTION 79. Withdrawal of Deposited Amount for   Land Compensation. — In cases of rejection, LOs may withdraw the original value of the landholding as determined by the DAR and LBP per MOV, subject to their submission of the requirements for payment. The withdrawal of the value by the LO shall not automatically terminate the adjudication of the just

compensation case pending Adjudicator or the DARAB.

with the appropriate

CHAPTER 9  Land Valuation and Landowner Compensation

When the LO later accepts the original value or  subsequent value as recomputed by the LBP based on existing valuation guidelines, the mere filing of a manifestation by the LO regarding the acceptance of the original value or of a joint manifestation by the LO and the LBP on the recomputed value with the Adjudicator  or DARAB shall automatically terminate the just compensation case pending thereat.

SECTION 84.  Just Compensation. — The compensation for lands covered under  R.A. No. 6657, as amended, shall be: a) the amount determined in accordance with the criteria provided for in Section 17 of the said law and existing guidelines on land valuation; or b) the value based on the order of the DARAB or the regular court, which has become final and executory.

SECTION 80.  Just Compensation from Agrarian  Reform Fund Only. — The just compensation of the LO shall be drawn solely from the Agrarian Reform Fund. It shall not be drawn from or executed against the general funds and/or assets of the LBP.

SECTION 85.  Formula for Valuation. — The basic formula for the valuation of lands covered by VOS or  CA shall be:

SECTION 81.  DAR Possession Upon Issuance of  COD. — As a general rule, the DAR shall take immediate possession of a landholding upon the issuance of a COD by the LBP, and shall thereafter  immediately proceed with the distribution process to the qualified ARBs of the landholding pursuant to Section 16 of R.A. No. 6657, as amended. SECTION 82.  ROD's Duty to Issue RP Title Upon  Receipt of COD. — Upon receipt of the PARO's request for the issuance of an RP Title, the ROD shall immediately issue the RP title for the CARP covered area and a separate title to the retention and noncoverable area in the name of the LO. SECTION 83.  Accelerated ALI Case Resolution for   Pipeline Cases. — Notwithstanding the pendency of an ALI case involving a landholding included in the CARPER balance, its acquisition and distribution shall continue. If there is an ALI or DARAB case involving said land and its pendency is prejudicial to the acquisition or distribution process, the PARO shall recommend to the Regional Director, if the case is  pending with him, or to the Head Executive Assistant of  the Office of the Secretary, if the case is pending with the Office of the Secretary, the Legal Affairs Office, the DARAB, or the Center for Land Use Policy, Planning, and Implementation, as the case may be, that the case  be certified as urgent and its resolution be accelerated.

LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10) Where:

LV

=

Land Value

CNI 1 = Capitalized Net Income (based on land use and productivity) CS 2 = Comparable Sales (based on fair market value equivalent to 70% of BIR Zonal Value) MV 3 = Market Value per  Tax Declaration (based on Government assessment) The CS factor refers to the Market Data Approach under the standard appraisal approaches which is based  primarily on the principle of substitution where a  prudent individual will pay no more for a property than it would cost to purchase a comparable substitute  property. This factor is determined by the use of 70% of  the BIR zonal valuation. The CNI factor, on the other hand, refers to the Income Capitalization Approach under the standard appraisal approaches which is considered the most applicable valuation technique for income-producing properties such as agricultural landholdings. Under this approach, the value of the land is determined by taking the sum of  the net present value of the streams of income, in

 perpetuity, that will be forgone by the LO due to the coverage of his landholding under CARP. The MV factor is equivalent to the Market Data Approach, except that this is intended for taxation  purposes only. ASTcEa Valuation cases: a.

If three factors are present

When the CNI, CS and MV are present, the formula shall be: LV = (CNI x 0.60) + (CS x 0.30) + (MV x 0.10)  b.

SECTION 86.  Determination of Annual Gross  Production. — In the determination of the Annual Gross Production (AGP), Selling Price (SP), and Cost of Operation (CO) to be used in the determination of the CNI factor, the audited financial statement filed with the Bureau of Internal Revenue (BIR) shall be obtained  by the DARMO from the LO fifteen (15) days prior to the date of FI. If the LO fails to submit the same, the DAR and the LBP may adopt applicable industry data or, in the absence thereof, conduct an industry study on the specific crop concerned. SECTION 87.  Lands Awarded to Preferred   Beneficiaries, Non-Compensable. — In the determination of the just compensation, the area to be awarded to preferred beneficiaries shall not be included. The LO shall not be compensated for the portion of the land to be awarded to the preferred beneficiaries.

If two factors are present  b.1) When the CS factor is not present and CNI and MV are applicable, the formula shall be:

SECTION 88.  Pending Land Valuation Cases. — All  previously acquired lands where valuation is subject to challenge by LOs shall be completed and finally resolved pursuant to Section 17 of  R.A. No. 6657, as amended.

LV = (CNI x 0.90) + (MV x 0.10)  b.2) When the CNI factor is not  present, and CS and MV are applicable, the formula shall be: LV = (CS x 0.90) + (MV x 0.10) c.

If only one factor is present

When both the CS and CNI are not  present and only MV is applicable, the formula shall be: LV = MV x 2 In no case shall the value of idle land using the formula (MV x 2) exceed the lowest value of land within the same Estate under consideration or within the same barangay, municipality, or province (in that order) approved by the LBP within one (1) year from receipt of the CF.

SECTION 89.  Additional 5% Cash for VOS. — LOs, other than banks and financial institutions, who voluntarily offer their lands for sale, shall be entitled to an additional five percent (5%) cash payment. SECTION 90. Whom to Pay if Subject Land is Transferred. — For landholdings which were conveyed and thereafter registered after the effectivity of R.A.  No. 6657, the LBP may consider the transferee as the  payee, provided that the transfer is valid and proof of  the transfer is presented. Subject to the rules in A.O. No. 05, Series of 2006 and other pertinent A.O.s, for transfers made not in accordance withA.O. No. 01, Series of 1989, the Deed of Conveyance shall be treated as a Deed of  Assignment to the proceeds from the just compensation, for purposes of the release of payment. CHAPTER 10  Land Distribution

SECTION 91.  Agreement as to the Allocation of   Awarded Lands. — The qualified beneficiaries may agree among themselves as to how the land shall be allocated to each of them. The agreement must be signed by all the qualified beneficiaries. If no agreement is made, the equitable allocation of the land shall be observed in the manner provided by Sections 92, 93, 94, and 95 of this A.O. SECTION 92. Three (3) Hectares to Regular   Farmworkers and Tenants. — Unless an agreement among the qualified beneficiaries to the contrary is made, only after the agricultural lessees, tenants, and regular farmworkers, have each been awarded three (3) hectares pursuant to Section 22 of  R.A. No. 6657, as amended, shall the other qualified beneficiaries such as seasonal farmworkers, other farmworkers, actual tillers/occupants of public lands (only insofar as untitled  private agricultural landholdings are concerned), and others directly working on the land, be accommodated. SECTION 93.  Allocation of Awarded Lands. — The equitable allocation of the land shall be observed in the following manner: a. Landholdings covered by CARP shall be allocated first to agricultural lessees, tenants, and regular farm workers of the same landholding up to a maximum of three (3) hectares each. In case the landholding is not sufficient to award each agricultural lessee, tenant, and regular farm worker three (3) hectares each, it shall be distributed in the manner provided in Section 94 of this A.O. aIcETS  b. After complying with the three (3)hectare allocation requirement for lessees, tenants, and regular farm workers, as the case may be, the MARO shall determine the remaining area left for distribution to seasonal farm workers, other farm workers, actual tillers or occupants of public lands, and others directly working on the land, in the manner provided by Section 95 of this A.O.

c. Excess areas, if any, after the allocation mentioned in the preceding paragraph shall be awarded to collectives or cooperatives of the above beneficiaries. However, the tenants/lessees in such excess areas shall be given a reasonable time to harvest the produce of his/her crop, subject to the rules on standing crops. In cases, however, where there are preferred  beneficiaries approved upon nomination of the LO, each preferred beneficiary may select a contiguous and compact area, no larger than three (3) hectares, to be allocated to them prior to determining the allocation for  the ARBs, provided that in no case may the distribution of lands to preferred beneficiaries deprive each of the agricultural lessees and tenants of being awarded the  portion of the landholding they are actually tenanting/leasing, which in no case shall be more than three (3) hectares. SECTION 94.  If Land Not Enough for Agricultural   Lessees, Tenants, and Regular Farmworkers. — In cases where the land area is not enough to meet the three (3)hectare award ceiling for each agricultural lessee, tenant, and regular farmworkers in a particular  landholding, then the landholding shall be divided equally among them, provided that in no case may the allocation of lands deprive each of the agricultural lessees and tenants of being awarded the portion of the landholding they are actually tenanting/leasing, which in no case shall be more than three (3) hectares. However, in the extreme cases that the land area is not enough to provide all them one thousand (1,000) square meters each, the names of the said agricultural lessee, tenant, and regular farmworkers shall be listed from the ARB who has leased/served the most aggregate time to him/her who has leased/served least. Each ARB shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who received one thousand (1,000) square meters each. Other qualified beneficiaries under Section 22 of  RA.  No. 6657, as amended, who are displaced after the distribution of all available land to tenants/lessees, may

still qualify as ARBs in other lands covered under the CARP. SECTION 95.  Allocation of Seasonal Farmworkers, Other Farmworkers, Actual Tillers or Occupants of   Public Lands, and Others Directly Working on the  Land. — The remaining land shall be allocated to the seasonal farmworkers, other farmworkers, actual tillers or occupants of public lands, and others directly working on the land in the following manner: (a) The remaining area shall be distributed equally among seasonal farmworkers, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the land area is not enough to provide all the seasonal farmworkers one thousand (1,000) square meters each, the names of the said seasonal farmworkers shall be listed from the farmworker  who has served the most aggregate time to him/her who has served least. Each se asonal farmworker shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who received one thousand (1,000) square meters each. (b) If after all the seasonal farmworkers have  been allocated three (3) hectares each there still remains a land area, or if there are no seasonal farmworkers, it shall be distributed equally among the other farmworkers, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the land area is not enough to provide all the other  farmworkers one thousand (1,000) square meters each, the names of the said other  farmworkers shall be listed from the farmworker  who has served the most aggregate time to him/her who has served least. Each of the other  farmworkers shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area, if any,

shall then be distributed equally among those who received one thousand (1,000) square meters each. (c) If after all the other farmworkers have  been allocated three (3) hectares each there still remains a land area, and if the landholding is an untitled private agricultural land, it shall be distributed equally among the actual tillers or  occupants of that public land, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the land area is not enough to provide all the actual tiller/occupant one thousand (1,000) square meters each, the names of the said actual tiller/occupant shall be listed from the actual tiller/occupant who has tilled/occupied the said land the most aggregate time to him/her who has tilled/occupied least. Each of the actual tiller/occupant shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who received one thousand (1,000) square meters each. (d) Finally, if after all the actual tiller/occupant have been allocated three (3) hectares each there still remains a land area, or if  the landholding is not an untitled private agricultural land, it shall be distributed equally among the other persons directly working on the land, but in no case shall each be awarded more than three (3) hectares each. In the extreme cases that the land area is not enough to provide all these other persons one thousand (1,000) square meters each, the names of these other   persons shall be listed from him/her who has worked the said land the most aggregate time to him/her who has worked least. Each of the actual tiller/occupant shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The remaining land area, if any, shall then be distributed

equally among those who received one thousand (1,000) square meters each. SECTION 96.  Award of CLOA. — In general, the land awarded to an ARB should be under an individual CLOA-title covering one (1) contiguous tract or several  parcels of land cumulated up to a maximum of three (3) hectares. Qualified beneficiaries may opt for collective ownership, through a co-workers or farmers' cooperative/association or some other form of collective organization, for the issuance of collective ownership titles: Provided, That the total area to be awarded shall not exceed the total number of co-owners or members of the cooperative or collective organization multiplied  by the award limit of three (3) hectares, except in meritorious cases as may be determined by the PARC, and provided further that the conditions for the grant of  collective CLOAs under this A.O. are met. Under collective ownership, a collective CLOA to the  property shall be issued in the names of the co-owners, who may form a farmers' cooperative/association or  collective organization. If the CLOAs are issued collectively, the names of all the beneficiaries must be listed in the CLOA. If the subject land is legally transferred, the transferee, if qualified, can be substituted as beneficiary of the individual CLOA upon the approval of the PARO. Collective CLOAs may be issued under the following instances: i. The current farm management system of  the land covered by CARP is not appropriate for  either individual farming or division of the landholding into farm parcels; ii. The farm labor system is specialized, where the farmworkers are organized by functions such as spraying, weeding, packing, and other similar activities, and not by specific  parcels;

iii. The potential beneficiaries are currently not farming individual parcels but collectively working on large contiguous areas; and iv. The farm consists of multiple crops  being farmed in an integrated manner, or  includes non-crop production areas that are necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that cannot be subdivided or assigned to individual farmers. The names of the ARBs sharing a collective CLOA issued in the name of a farmers' cooperative/association or collective organization shall be listed at the back  thereof. Those listed shall be deemed as the owners of  the landholding covered by the said collective CLOA. SECTION 97. Collective Ownership of Idle,  Abandoned, or Undeveloped Land. — For idle and abandoned lands or undeveloped agricultural lands to  be covered by CARP, collective ownership shall be allowed only if the beneficiaries opt for it and in case there is a clear development plan that would require collective farming or integrated farm operations exhibiting the conditions described in Section 96 of this A.O. Otherwise, such lands awarded to ARBs should be under individual CLOAs/titles, covering one (1) contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares. SECTION 98.  Period to Select Type of CLOA. — With respect to ARBs who may opt for collective CLOAs under Sections 96 and 97 of this A.O., the ARB must file a manifestation to the PARO as to whether he/she opts for an individual CLOA or a collective one within a non-extendible period of fifteen (15) days from the  posting of the Master List of ARBs. The failure to file said manifestation within this fifteen (15)-day reglementary period shall be construed as a waiver of the right to choose, and the ARB shall be deemed to have opted for an Individual CLOA. SECTION 99. Specification of Actual Area to be  Awarded. — After the ARBs have decided whether they wanted to be awarded an individual CLOA or a

collective one, the MARO shall allocate the actual  portion of the landholding to be awarded to the ARBs. In allocating the area, the MARO shall decide in accordance with the preference of the ARBs, subject to the following factors in the following order: CTHDcS i. The area of the individual ARBs sharing a collective CLOA shall be adjacent and contiguous with each other; ii. The area tenanted by an ARB shall be that awarded to him/her. SECTION 100. Usufructuary Right of ARBs. —   Notwithstanding Section 108 of this A.O., the ARBs have the right of usufruct over the land from the time the DAR takes constructive or actual possession of the same until the award of a CLOA. Pending the award of the CLOA and for the purpose of  establishing usufructuary rights, the DAR, upon issuance of the COD and upon actual possession of the land, shall immediately inform the ARBs that they have  been identified and qualified to receive the land. SECTION 101.  Labor-Related Issues Not a Deterrence to the Acquisition and Distribution of Landholding. —  The existence of labor-related issues between the LO and the farmworkers, including questions on ownership of the subject landholding and payment of just compensation, shall in no case deter or delay the  process of land acquisition and distribution. SECTION 102. When Other Rights and Obligation of   ARBs Commence. — The rights of the ARBs, other than the usufructuary rights provided in Section 100 hereof, and their responsibilities shall commence from their  receipt of a certified true copy of the duly registered Certificate of Land Ownership Award (CLOA) and actual physical possession of the awarded property. The following are the obligations of ARBs: a. All ARBs shall exercise diligence in the use, cultivation, and maintenance of the land, including the improvements thereon.  Negligence, misuse, or unauthorized sale of the land or misuse of any support extended to an

ARB shall be a ground for the forfeiture of one's right as an ARB.

either individual or collective land amortizations, as the case may be.

 payment in cash and bonds, with due notice to the LO;

 b. Amortization payments shall commence one (1) year from the date of actual occupancy of the ARB, provided that the CLOA has already been registered. Subject to existing rules on computation of amortization based on the  principle of affordability and provision for  government subsidy, ARBs shall have the obligation to pay the LBP in thirty (30) annual amortizations with interest at six percent (6%)  per annum, unless the ARB opts to accelerate  payment. Amortizations shall not include interest due for the delay in payment of just compensation to the LOs.

SECTION 105.  Award to Qualified Spouses. —  Agricultural lessees and tenants, regular farmworkers, and other qualified beneficiaries such as seasonal farmworkers, other farmworkers, actual tillers/occupants of public lands (only insofar as untitled  private agricultural landholdings are concerned), members of collectives or cooperatives of the above  beneficiaries, and others directly working on the land who are husband and wife may be entitled to three (3) hectares each, provided that they qualify as ARBs in their own individual right and that their respective vested rights to the land have been duly established. A separate CLOA shall be issued to each spouse in such cases.

2.

Register the CLOA generated by DAR;

3. and

Cancel previous titles pertaining thereto;

c. ARBs shall have the obligation to pay the real property taxes due on their awarded lands. Furthermore, lands awarded to ARBs under this Act may not be sold, transferred, or conveyed, except through hereditary succession or to the Government, or  to the LBP, or to other qualified beneficiaries within a  period of ten (10) years and while the amortization  payments have yet to be fully paid; provided, however, that the children or the spouse of the transferor shall have a right to repurchase the land from the government or the LBP within a period of two (2) years from the date of transfer. SECTION 103.  Real Property Tax Liability of ARB Cooperative. — The ARB Cooperative/Association may assume the responsibility of paying the local government unit (LGU) the real property tax (RPT) due on collectively awarded land, subject to the provisions of the Cooperative Code of the Philippines. SECTION 104.  Facilities for Common Use and   Award. — Land improvements and facilities that are not  property of public dominion, such as private roads and  bridges, warehouses, and the like, which are for  common use and benefit as may be defined by DAR, shall be transferred to all of the ARBs in the landholding through a Farmers' Association or  Cooperative, or in the absence thereof, through coownership, and equally shared payments covered under 

For legally married spouses, the names of both husband and wife shall appear in the CLOA and shall be  preceded by the word "spouses". Should the couple qualify as individual ARBs, their names shall be registered in the title, to wit: Juan married to Maria or  Maria married to Juan to indicate that the first name is the awardee. In the case of a common-law relationship, the names of both parties shall likewise appear in the CLOA with the conjunctive word "and" between their  names. Should they likewise qualify as individual ARBs, their names shall be registered without the other. The same provisions shall apply in cases where the married ARBs or ARBs in a common-law relationship are covered by a collective/co-ownership CLOA and their names are annotated at the back of the said CLOA. For purposes of ARB inventory and reporting, spouses or parties whose names appear in a single CLOA shall  be counted as one ARB. SECTION 106.  Ministerial Duty of ROD in CARP   Implementation. — 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

4. Issue title for the LO's retained area and other non-CARPable areas. SECTION 107.  Repository of Registered CLOAs. —  All registered CLOAs shall be released by the ROD to the LBP as the mortgagee financing institution. The LBP shall provide two (2) sets of certified true copies of  the CLOA, closely simulating the appearance, color, and paper of the same, to the PARO. The PARO shall thereafter transmit one set of the copies to the ARBs within fifteen (15) days from his/her receipt of the CLOAs. The LBP shall be the responsible repository of  the encumbered CLOAs until the time of their release to the concerned ARBs upon full payment of the land amortization, and the cancellation of the encumbrance. CHAPTER 11  Installation of Agrarian Reform Beneficiaries on  Awarded Lands

SECTION 108.  ARB's Right of Possession. — As owner/s of awarded lands under CARP, the ARB/s shall take possession of the land covered by his/her/their  titles from the time the same is awarded to them through a registered CLOA. SECTION 109. Writ of Installation. — In case taking  possession of the awarded land by the ARBs would imperil or endanger their lives, the DAR shall assume responsibility for the installation of the ARB/s on the subject land with the assistance of the police or military until they are settled and in constructive and physical control of the property. In pursuance of this mandate, the PARO may issue a Writ of Installation directing the Sheriff of the PARAD or the RARAD who has jurisdiction over the landholding, alone or with the assistance of the police or military, to conduct all necessary lawful acts to