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

DAR ADMINISTRATIVE ORDER NO. 02-96

REVISED RULES AND PROCEDURES GOVERNING THE ACQUISITION OF AGRICULTURAL LANDS SUBJECT OF VOLUNTARY OFFER TO SELL AND COMPULSORY ACQUISITION PURSUANT TO REPUBLIC ACT NO. 6657

I.

PREFATORY STATEMENT

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

II.

COVERAGE

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

A. Voluntary Offer to Sell (VOS)

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

B. Compulsory Acquisition (CA)

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

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

C. E.O. 407 Acquisition

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

III.

POLICY

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

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

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

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

IV.

OPERATING PROCEDURES

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

V.

REPORTING AND MONITORING

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

VI.

TRANSITORY PROVISIONS

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

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

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

VII.

REPEALING CLAUSE

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

VIII.

EFFECTIVITY

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

Adopted: 06 Aug. 1996

(SGD.) ERNESTO D. GARILAOSecretaryDepartment of Agrarian Reform