Revised Rules and Procedures on the Acquisition of Agricultural Lands Subject to Voluntary Offer to Sell and Compulsory Acquisition ( DAR Administrative Order No. 02-96 )

August 06, 1996

August 06, 1996





In compliance with the Supreme Court Resolution dated 05 July 1996 in the cases of Land Bank of the Philippines (LBP) versus Court of Appeals (CA), Pedro L. Yap, et al., (G.R. No. 118712) and Department of Agrarian Reform (DAR) versus CA, Pedro L. Yap, et al., (G.R. No. 118745), the following rules and procedures are hereby promulgated. CaSHAc



These Rules shall cover Voluntary Offer to Sell (VOS) and Compulsory Acquisition (CA) transactions involving lands enumerated under Section 7 of RA 6657, and those acquired under Executive Order No. 407 dated June 14, 1990, as amended.

A. Voluntary Offer to Sell (VOS)

All private agricultural lands voluntarily offered by landowners for sale to the government.

B. Compulsory Acquisition (CA)

All idle and/or abandoned agricultural lands regardless of size.

All other private agricultural lands falling under the coverage of the Compulsory Acquisition mode according to the schedule and priorities defined in Section 7 of RA 6657.

C. E.O. 407 Acquisition

All other agricultural lands transferred to the DAR pursuant to Executive Order No. 407 dated June 14, 1990, as amended.



A. All landowners (LO) whose lands are subject for coverage under RA 6657 may voluntarily offer their lands for sale to the government. However, lands for which notices of coverage have already been sent by the government and received by the landowner shall no longer be considered as voluntarily offered lands.

B. If the land is tenanted, the ARBs shall continue to pay lease rentals based on existing guidelines on leasehold operations until such time that the landowner signs the Deed of Transfer, or the LBP deposits the compensation proceeds in the name of the landowner, as the case may be. In case there is any standing crop on the land at the time of acquisition, the landowner shall retain his share of the harvest thereof pursuant to Section 28 of RA 6657 and other related laws.

C. The compensation for the land shall be the amount agreed upon by the DAR, LBP and the landowner in accordance with the criteria provided for in Section 17 and 18, and other pertinent provisions of RA 6657 and existing guidelines, or the value set under summary administrative proceedings conducted by DAR pursuant to Section 16(d) of RA 6657 and the DAR Adjudication Board Revised Rules of Procedures, or as may be finally determined by a competent court.

D. Landowners, other than banks and financial institutions, who voluntarily offer their lands for sale shall be entitled to an additional five percent (5%) cash payment pursuant to Section 19 of RA 6657. AaDSTH



A. Identification and Documentation
    For VOS only
1 LO Files Letter Offer together CARP Form No. 1
  DARMO with the basic ownership (Letter Offer)
    documents in any DAR Certified copy of
    office.  The DAR office  OCT/TCT
    which received the afore- Certified copy of
    said documents forwards Tax Declaration
    same to DAR Municipal Copy of the approved
    Office where the subject survey plan of
    property is located property
1.a DARMO Receives and reviews  Refer to List of
    duly accomplished  Documents 
    CARP Form No. 1 Required Pursuant
    with the attached  to RA 6657 under
    documents, gather  Different Situations
    documents required (Annex “A”)
    as may be applicable to  
    a particular situation.  
1.b DARMO Acknowledges receipt  
    of documents, advises  
    LO on specific procedures  
    and to submit additional  
    documents, if any, to  
    include the surrender of  
    the owner’s duplicate  
    certificate of title to LBP  
    as a requirement for  
    payment; prepares  
    corresponding claim folder  
    (CF) of LO  
    For CA only
1. DARMO Gathers all appropriate Same as above
    documents similar to   
    those enumerated under  
    VOS and prepares  
    corresponding CF of LO.  
    For EO 407 covered lands
1 LO Executes DOT in favor Owner’s duplicate
    of RP and surrenders to copy of title Tax
    DAR all appropriate  Declaration and
    documents. other necessary
    documents to effect  
    the transfer of   
1.a DARPO Forwards duly executed Duly executed DOT
    DOT and appropriate Approved subdivision
    documents to ROD for or segregation plan
    registration of same and (ASP) with technical
    requests for the issuance descriptions
    of title in the name of RP.  
1.b ROD Registers DOT and issues  
    TCT in the name of RP and   
    forwards owner’s duplicate  
    certificate of title to PARO.  
1.c DARPO Proceeds with the   
    distribution of land.  
    For VOS, CA and EO 407
2 DARMO Provides LBP thru PARO The list should 
    list of landholdings  contain the ff:
    together with the certified - Name of LO
    copy of the title, tax - Title/TD No.
    declaration and approved - Area
    survey plan or sketch - Location
    plan of the property for  
    scheduling of the ocular  
3 DARMO Sends Notice to BARC, CARP Form No. 2
    DENR, DA, LBP and (Notice to Conduct
    prospective ARBs on Field Investigation)
    the schedule of the field  
    investigation at least CARP Form No. 2.a
    two weeks in advance. (Invitation Letter to
    Invites the LO to join LO for the Field
    the field investigation, Investigation)
    to select his retention  
    area and to submit his  
    Statement of Production  
    and Income. If LO cannot be  
    contacted, notice shall be  
    published in a newspaper  
    of national circulation.  
4 DARMO Conducts joint field  
    investigation of the  
    property with LBP,  
    DENR, DA, LO, BARC  
    and prospective ARBs.  
5 DARMO Prepares FIR and Land CARP Form No. 3
    Use Map jointly with (Field Investigation
    LBP and BARC. Report)
6 DARMO Screens/selects qualified CARP Form No. 4
    ARBs and causes the (Application to
    signing of the APFUs. Purchase and
    Farmer’s Under-  
7 DARMO Sends LO the Notice of CARP Form No. 5
    Coverage together with (Notice of Coverage)
    a copy of the FIR by  
    personal delivery with  
    proof of service or by  
    registered mail with  
    return card.  
8 DARMO Posts a copy of the  CARP Form No. 6
    Notice of Coverage for (Certification of
    seven (7) working days Posting Compliance)
    in the bulletin board of  
    the barangay and muni-  
    cipal halls where the   
    property is located and  
    issues Certification of  
    Posting Compliance.  
9 DARMO Forwards claim folder  CARP Form No. 7
    to PARO. (CF Transmittal
B. Review and Completion of Data/Documents
10 DARPO Receives claim folder  
    and forwards to the DAR-  
    LBP Pre-Processing Unit  
    (PPU) for review/evaluation  
    of documents.  Gathers  
    lacking documents, if any.  
    C. Land Survey
11 DARPO Expedites survey Approved subdivision
    activities and ensures or segregation plan
    that segregation/sub- (ASP) with survey
    division survey returns technical descriptions
    are completed and  
    approved by the DENR-  
    LMS pursuant to existing  
12 DAR-LBP-PPU Forwards CF to LBP- CARP Form No. 8
    LVLCO together with (Memorandum
    the ASP, if applicable. Request to Value the 
D. Land Valuation and Compensation
13 LBP-LVLCO Receives and evaluates  
    the CF for completeness,  
    consistency and document  
    sufficiency.  Gathers  
    additional valuation  
14 LBP-LVLCO Determines land  Claims Valuation 
    valuation based on and Processing
    valuation inputs Form (CVPF)
Note:  CFs where the    
land valuation amounts    
to more than P3 million    
shall be forwarded to    
15 LBP-LVLCO Prepares and send  CARP Form No. 9
    Memo of Valuation, (Memorandum of
    Claim Folder Profile Valuation and Claim
    and Valuation Summary Folder Profile and
    (MOV-CFPVS) to PARO. Valuation Summary)
16 DARPO Receives LBP’s MOV-  
    CFPVS and ascertains the  
    completeness of the data  
    and information therein.  
17 DARPO Sends Notice of Land  CARP Form No. 10
    Valuation and Acquisition (Notice of Land
    to LO by personal  Valuation and
    delivery with proof of  Acquisition)
    service or by registered  
    mail with return card,  
    attaching copy of MOV-  
    CFPVS and inviting LO’s  
    attention to the submission  
    of documents required for  
    payment of claim.  
18 DARPO Posts  a copy of the Notice CARP Form No. 11
    of Land Valuation and (Certification of
    Acquisition (NLVA) for at Posting Compliance)
    least seven (7) working  
    days on the bulletin board  
    of the provincial capitol,  
    municipal and barangay  
    halls where the property   
    is located and issues a  
    Certification of Posting  
19 LO Replies to Notice of Land CARP Form No. 10.a
    Valuation and Acquisition (LO’s Reply to
    and submits documents NLVA)
    required for payment of  
    compensation claim.  
    If LO accepts, proceed to D.1  
    If LO rejects or fails to  
    reply, proceed to D.2.  
D.1 Where LO accepts the Land Valuation
20 DARPO Upon receipt of LO’s CARP Form No. 12
    Letter of Acceptance,  (Request to Pay)
    sends Memorandum to  
    LBP to prepare the Deed   
    of Transfer and to Pay  
    the LO.  
21 LBP-LVLCO Prepares DOT for LO CARP Form No. 13
  LBP-HO to execute and deposits (Deed of Transfer)
    the compensation   
    proceeds in the name of  
    LO in cash and in bonds.  
    The entire deposit may be  
    withdrawn by the LO; how-  
    ever, the actual release  
    of same shall only be  
    effected upon LO’s  
    submission of all docu-  
    mentary requirements.  
22 LO Executes DOT and  CARP Form No. 13
    submits payment (Deed of Transfer)
    requirements to LBP  
    within seven (7) working  
    Should the LO fail to CARP Form No. 16
    submit the required (Notice of LO’s Non-
    documents within seven Compliance with
    (7) working days from Requirements)
    LBP receipt of the DAR  
    Request to Pay, notifies CARP Form No. 17
    DAR of such failure by (Certificate of
    LO and also issues to Payment)
    DAR the Certification of  
    Thereafter, the DAR shall CARP Form No. 18
    request ROD to transfer (Request to Issue
    the Certificate of Title TCT in the Name of
    covering subject property RP)
    in favor of the RP.  
23 LBP-LVLCO Forwards DOT together CARP Form No. 13
  LBP-HO with the owner’s duplicate (Deed of Transfer)
    certificate of title and ASP Certified copy of
    (if applicable) to ROD for ASP and its tech-
    registration. nical description
      approved by DENR,
      if property is partially
      covered by CARP
24 ROD Registers DOT and issues  
    TCT in the name of RP,  
    then forwards owner's  
    duplicate certificate of  
    title to LBP.  
25 LBP-LVLCO Prepares Payment  LBP Payment 
    Release Form upon LO’s Release Form
    compliance with all the  
    requirements for payment.  
    In case the land is encum-  
    bered, pays the mortgagee-  
    bank/creditor upon LO’s  
    request and pays the  
    balance of the proceeds  
    to the LO.  
26 LBP-LVLCO Surrenders the owner's Owner's duplicate
  LBP-HO duplicate certificate of  certificate of title (RP)
    title (RP) to PARO which  
    will in turn transmit said  
    copy to ROD to enable  
    CLOA registration.  
D.2 Where LO rejects the Land Valuation
20 DARPO If the LO rejects the CARP Form No. 10.a
    offered price or fails to (LO’s Reply to
    reply within thirty (30) NLVA)
    days from receipt of  
    the Notice of Land CARP Form No. 15
    Valuation and Acquisition  (Request to Deposit)
    forwards to LBP the   
    Request to Deposit the  
    compensation proceeds  
    in cash and in bonds in  
    the name of the LO.  
21 DARPO Requests the DARAB/ CARP Form No. 14
    RARAD/PARAD to (Advice to DARAB/
    conduct administrative RARAD/PARAD)
    proceedings pursuant to  
    DARAB guidelines, as the  
    case may be, furnishing  
    therein a copy each of the  
    LO’s Letter of Rejection,  
    Notice of Land Valuation  
    and Acquisition and LBP’s  
    Memorandum of Valuation.  
22 LBP-LVO Deposits the compen- CARP Form No. 17
  LBP-HO sation proceeds in the (Certification of
    name of LO and issues Deposit)
    Certification of Deposit  
    to  DAR through the  
    PARO, copy furnished  
    the LO.  
    The entire deposit may CARP Form No. 17.a
    be withdrawn by the LO; (Confirmation of
    however, actual release Coverage and
    of same shall be subject Transfer For
    to LO’s submission of  Claims of Individual
    all  requirements for  LOs - Still pending
    payment and execution with DARAB)
    of Confirmation of  
    Coverage and Transfer. CARP Form No. 17.b
    (Confirmation of  
    Coverage and  
    Transfer for Claims  
    of Corporate LOs -  
    Still pending with  
23 DARPO Upon receipt of the CARP Form No. 18
    Certification of Deposit (Request to Issue
    from LBP, transmits TCT in the Name of
    the same to the Register RP)
    of Deeds concerned,  
    including the approved  
    plan of subject property,  
    if partially covered and  
    simultaneously requests  
    the ROD to issue TCT in  
    the name of RP.  
24 ROD Issues new TCT in the  New TCT in the 
    name of RP and forwards name of RP and
1   owner's duplicate certificate owner's duplicate
    of title in the name of RP copy of title in the
    to LBP-LVO which name of RP
    furnishes the PARO a   
    certified xerox copy of the  
25 DARAB / Simultaneously with Activity  
  RARAD / Nos. 22-24 above, the DARAB/  
  PARAD RARAD/PARAD conducts  
    summary administrative  
    proceedings; renders decision  
    and informs parties concerned  
    of the same.  
26 DARPO Upon receipt of the CARP Form No. 17.c
    Certificate of Finality (Confirmation of
    of the DARAB Order, Coverage and
    requests LBP to pay  Transfer for Claims
    the LO in accordance of Individual LOs -
    with the DARAB  Already decided
    decision; requests LBP by DARAB)
    to prepare Confirmation  
    of Coverage and  CARP Form No. 17.d
    Transfer for LO to (Confirmation of
    accomplish.  Thereafter, Coverage and
    LBP follows Activity Transfer for Claims
    Nos. 25-26 under D.1. of Corporate LOs -
    In case the LO still Already decided
    rejects DARAB decision,  by DARAB)
    he may go to the Special  
    Agrarian Court (SAC) for  
    the final determination of  
    just compensation.  
E. Land Distribution
27 DARPO Forwards to DARMO Certified copy of
    the certified copy of the TCT in the name 
    TCT in the name of RP of RP
    with the instruction to   
    take over physical  
    possession of the land  
    and proceed with the  
    distribution of the same  
    in favor of qualified ARBs.  



For monitoring and evaluation purposes, a provincial monthly report on the status of VOS/CA transactions shall be submitted to the Office of the Undersecretary for Field Operations through the Regional Office, copy furnished BLAD. All landowners concerned shall be periodically advised on the status of their claims. IDCScA



All trust accounts issued pursuant to Administrative Order No. 1, S. 1993, covering landholdings not yet transferred in the name of the Republic of the Philippines as of July 5, 1996 shall immediately be converted to deposit accounts in the name of the landowners concerned.

All Provincial Agrarian Reform Officers and Regional Directors are directed to immediately inventory the claim folders referred to in the preceding paragraph, wherever they may be found and request the LBP to establish the requisite deposit under this Administrative Order and to issue a new certification to that effect. The original Certificate of Trust Deposit previously issued should be attached to the request of the DAR in order that the same may be replaced with a new one.

All previously established Trust Deposits which served as the basis for the transfer of the landowner’s title to the Republic of the Philippines shall likewise be converted to deposits in cash and in bonds. The Bureau of Land Acquisition and Distribution shall coordinate with the LBP for this purpose.



All Orders, Circulars and other issuances inconsistent herewith are deemed repealed, amended and/or modified accordingly.



This Order shall take effect ten (10) days after its publication in two (2) newspapers of general circulation pursuant to Section 49 of RA 6657. ESITcH

Adopted: 06 Aug. 1996

(SGD.) ERNESTO D. GARILAOSecretaryDepartment of Agrarian Reform