REVISED RULES AND PROCEDURES GOVERNING DISTRIBUTION AND/OR TITLING OF LOTS IN LANDED ESTATES ADMINISTERED BY DAR

I
Prefatory Statement

The distribution and/or titling of lots in favor of qualified
beneficiaries in agricultural landed estates is characterized by a long
and tedious process resulting in the unnecessary delay in the issuance
of titles to deserving farmer-beneficiaries.  This situation negates the
very purpose of the Comprehensive Agrarian Reform Program.  There is
need, therefore, to revise existing rules and procedures in order to
facilitate the issuance of titles to the beneficiaries in DAR
administrative landed estates.

II
Legal Bases

The primacy of RA 6657 as the Comprehensive Agrarian Reform Law of
the government is clearly stated under Section 75 thereof which provides
that ” x.x.x.other laws not inconsistent with this Act shall have
suppletory effect.”

Under Section 49 of aforesaid law, the DAR is authorized to issue
rules and regulations, whether substantive or procedural, to carry out
the objects and purposes of this Act.

On the basis of the aforecited sections, these Revised Rules and Procedures are hereby adopted.

III
Coverage

These Revised Rules and Procedures shall apply to all agricultural
landed estates administered by the DAR, not previously covered by “Deeds
of Sale” properly issued by the DAR to the beneficiaries of the program
as listed in Annex A hereof.

IV
Statement of Policies

A. Land has a social function, hence, there is a concomitant social
responsibility in its ownership and should, therefore, be distributed to
the actual tillers/occupants.

B. All vacant lots, whether abandoned or unallocated, shall be
distributed to qualified beneficiaries, pursuant to Section 22 of RA
6657.

C. Except for the purchase price of the land, and those enumerated
under paragraph “E” hereof, no other costs, including survey fees (re:
survey of original lots), shall be charged against the beneficiaries.

D. Pursuant to RA 6657, the award limit shall not be more than three
(3) hectares.  However, qualified beneficiaries who have occupied and
cultivated the land, and established their vested rights prior to June
15, 1988, in accordance with the then existing laws, shall be awarded
the legal limits as allowed by said laws.  Processing of documents shall
be in accordance with this revised procedure. In case of homelots, the
award limit shall be 1,000 square meters.

E. In general, a Certificate of Land Ownership Award (CLOA ), shall
be immediately issued to the qualified beneficiary including those with
Deeds of Sale still pending with the Department, provided that all
outstanding accounts of an awardee shall be annotated at the back of the
CLOA issued to him and duly registered with the Register of Deeds.  
(These include amortization payments for the land, farm implements and
machineries if these are not covered by separate contracts, other loan
assistance, and accrued interests on overdue amortization payments and
unpaid rentals from January 1, 1986). Provided further, that other
encumbrances, as provided under the laws authorizing the distribution of
said landed estates, shall likewise be annotated in the said CLOA, and
provided finally, that the beneficiaries/ allocatees whose amortization
payments and unpaid rentals, as annotated at the back of their
respective titles, do not exceed one thousand pesos (P1 ,000), have
three (3) years to pay the same, commencing from the registration of
said titles. Beneficiaries/ allocatees whose obligations exceed one
thousand pesos (P1 ,000), have five (5) years to pay the same, also
commencing from the registration of aforesaid titles.

Failure to pay the obligations as aforestated, will lead to the
forfeiture of the lots of said beneficiaries/ allocatees in favor of the
government to be distributed to qualified beneficiaries/ allocatees.

V
Qualifications of a Beneficiary

The qualifications of a beneficiary are as follows:

1.       Landless;
2.       Filipino citizen;
3.       Actual occupant/tiller who is at least 15 years of age or
head of the family at the time of filing of application; and
4.       Has the willingness, ability and aptitude to cultivate and make the land productive.

VI
Definition of Terms

For purposes of this Order, the following definitions shall apply:

1.      Landed Estates are former haciendas or
landholdings of private individuals or corporations which have been
acquired by the Government under different laws, for redistribution and
resale to deserving tenants and landless farmers.

2.      Order of Award (OA) refers to the document
issued to the allocatee of a lot in a landed estate who is found
qualified to acquire said lot under existing laws, rules and regulations
at the time of its issuance.

3.      Certificate of Land Transfer (CLT) is a document issued by DAR, pursuant to DAR Memorandum Circular No. 24, series of 1973, dated October 24, 1973.

4.      Absentee OA/CLT Holder is an awardee or
CLT recipient who left or abandoned the lot awarded to him for more than
six (6) months immediately prior to the inventory prescribed under
paragraph VII – A – 1.

5.      Rental refers to the amount of money
collected by the Government from the actual occupant of a lot for the
use of the said lot, prior to the execution of the Contract to Sell.

6.      Accrued Interest refers to the total unpaid interests on the unpaid cost of the lot which is 6% per annum from January 1, 1986.

7.      Certificate of Land Ownership Award (CLOA)
is a document evidencing ownership of the land granted or awarded to
the beneficiary by DAR, and contains the restrictions and conditions
provided for in R.A. 6657 and other applicable laws.

8.      Landless Person pursuant to Section 25, RA 6657 is one who owns less than three (3) hectares of agricultural land.

VII
Operating Procedures

A. The MARO or the duly designated official covering the area shall. —

1.       Conduct a physical inventory and perform the following:

1.1  Identify the areas with approved, incomplete, erroneous and
without subdivision surveys. Recommend to the Provincial Agrarian Reform
Officer (PARO), the completion/correction of subdivision surveys within
a period not to exceed one (1) year from the issuance of this Order, so
that the lots in the areas concerned can be awarded and subsequently
titled in favor of the qualified beneficiaries;

1.2  Review and evaluate the list of allocatees/awardees and
conduct lot verification to determine whether said awardees/ allocatees
are still occupying and tilling the lots covered by their Orders of
Award/ CLTs, and, thereafter, prepare a masterlist of
occupants/claimants with corresponding lot numbers, to be posted
simultaneously for a period of fifteen (15) days at the Barangay Hall,
MARO office and at the Municipal Building;

1.3  Assist the occupant/tiller in accomplishing FB Application
form (L.E. Form No. 1). Where the tiller has already been issued a
DS/OA/CLT, his application form shall serve as his information sheet.
All actual occupants/tillers who have not been issued DS/OA/CLT shall be
assisted to fill up the application form; and

1.4  With the use of the Statement of Account Form, undertake the
computation of all the obligations to be paid by the beneficiary as
indicated in Section “E” hereof, or otherwise, to be annotated at the
back of the title.

2.       Evaluate Application Forms and recommend appropriate action on the basis of:

SITUATION		RECOMMENDED ACTION
2.1.  Applicant with OA/CLT
2.1.1. If living and actual cultivator/occupant 2.1.2. If deceased, but heirs are actual cultivators/ occupants     2.1.3. If not actual cultivator/occupant a. one who employs tenants prior to full payment of the cost of the lot. b. permanently incapacitated   c. one who mortgaged or sold his right and left the area   2.1.4 If occupying the wrong lot     2.1.5. Absentee	:   :         :     :           :     :     :	Issue CLOA Issue CLOA to the estate of the decedent or to one of the qualified heirs upon the agreement of the others.     Cancel OA/CLT and issue CLOA to qualified actual cultivator/occupant Issue CLOA provided that he has immediate members of his farm household who could assist him in farming otherwise, issue CLOA to qualified beneficiary designated by him.   Cancel OA/CLT and issue CLOA to qualified actual occupant/tiller.   Issue CLOA for lot actually occupied and cancel OA/CLT for the wrong lot.   Cancel OA/CLT and issue CLOA to qualified actual cultivator/ occupant
2.2 Actual occupant without OA/CLT
2.2.1 No other supporting document   2.2.2 With transfer document(waiver of rights of previous awardee) a.  With DAR approval b.  Without DAR approval	:         : :	Issue CLOA, provided occupant is qualified and there is no adverse claimant to the subject lot.     Issue CLOA Issue CLOA, provided occupant is qualified and there is no adverse claimant.

 

3.       Consolidate the LE Forms No. 1 and prepare Summary of FB
Data Sheet (LE. Form No. 2) for applicants recommended for the issuance
of CLOA. These shall constitute the Land Distribution Folder (LDF) for
landed estates.

4.       Endorse the LDF to the PARO for review and approval as a basis for CLOA preparation.

5.       Prepare a list of vacant and unawarded lots and lots with awards recommended for cancellation.

5.1          Grounds for Cancellation of Orders of Award:

5.1.1    Absence of the awardee from the landed estate for more
than six (6) months without doing any effort to make the land
productive.

5.1.2    Willful transfer of rights and is no longer occupying the lot.

5.1.3    Voluntary renunciation or waiver of rights in writing.

5.1.4    Failure to cultivate the lot for a period of six (6) consecutive months from the date subject lot was awarded.

5.1.5    Death of awardee if he has no qualified heir.

6.       Post the list of vacant and unallocated lots with the
corresponding recommended awardees and lots with awards recommended for
cancellation for fifteen (15) days at the MARO office and in other
conspicuous places within the landed estate.  Posting shall include the
grounds for the cancellation of awards, and a notification that affected
parties are given fifteen (15) days upon receipt of notice to affirm or
protest the recommended action at the MARO office.

6.1          Prepare a report on lots with awards recommended for cancellation. The report shall include:

6.1.1    Identification of the farmlot and/or homelot, i.e. lot number, survey number, area, and location;

6.1.2    Names and addresses of previous awardees and spouses;

6.1.3    Date the lot was awarded;

6.1.4    OA or CLT Number, if any;

6.1.5    Enumeration of the grounds for the cancellation of the award; and

6.1.6    Actual occupant, if any, and the basis of occupancy.

6.2          Received all protests/complaints on the posted list,
particularly on the cancellation of awards and verify the authenticity
of the grounds or bases of the protest and submit recommendation for
cancellation to the PARO.  Affected parties shall be notified to lodge
their protests/appeals if any, to the PARO office within thirty (30)
days from receipt of notice.

7.       Identify and prioritize the list of farmer-beneficiaries,
in close coordination with the BARC, for consideration in the
distribution of available lots.

8.       Consolidate Application Forms and prepare Summary Data
Sheet for the new beneficiaries. These shall constitute another Land
Distribution Folder (LDF).

9.       Endorse the LDF to the PARO for review and consolidation.

B. The PARO shall —

1.       Categorize all documents received from the MARO office, as to whether the subject lot is under protest or not;

2.       Review and consolidate the LDF by estate within the province;

3.       Prepare the CLOAs in the PARO office or those without any protest or appeals;

4.       Endorse the LDFs and the CLOAs to the DAR Secretary
through the BLAD for approval, copy furnished the Regional Director;

5.       Act on protests/appeals concerning the cancellation of Orders of Award within fifteen (15) days from receipt thereof;

6.       Act on, and in proper cases, order the cancellation of
awards per recommendation of the MARO within fifteen (15) days upon
receipt of the recommendation; and

7.       Provide copies of the Order of Cancellation to the awardee
at his last known address, the MARO, and the Regional Director.  The
PARO shall advise affected parties that they have fifteen (15) days from
receipt of the Order to appeal the decision to the Regional Director.
Copy of the appeal shall be funished the PARO within the said period.

C. The Regional Director shall —

1.       Act on appeals concerning the cancellation of Orders of Award within fifteen (15) days from receipt thereof;

2.       Furnish copies of the decisions on the appeals, the
parties concerned, the PARO, the MARO, and the Regional
Adjudicator/DARAB Adjudicator;

3.       Notify the parties concerned that they have fifteen (15)
days from receipt of notice to file their appeals to the Regional
Adjudicator/DARAB Adjudicator, otherwise, Order becomes final and
executory; and

4.       Notify the PARO of his decision which has become final and executory.

D. The BLAD shall —

1.       In thirty (30) days, review and evaluate the LDFs and CLOAs from receipt thereof;

2.       Cause the approval and signature of the Secretary and affix the DAR seal on each CLOA; and

3.       Transmit the signed CLOAs to the concerned PARO within
fifteen (15) days from the signing of the Secretary, for registration in
the Register of Deeds (ROD), and furnish the MIS and the Regional
Director, a copy of the list of titles issued.

E. The Register of Deeds shall —

1.       Register approved CLOAs; and

2.       Return registered CLOAs to the PARO.

F. The PARO shall — Record the CLOAs that had been
registered and transmit same within five (5) days upon receipt thereof
to the MARO concerned for distribution within five (5) days from receipt
thereof.

VIII
Collection of Amortization and Actual Obligations

At the provincial level, a Collection Team shall be organized to be
composed of qualified Bill Collectors. The team members shall be given
special trainings on the computation of land values, and of all
receivables from the beneficiaries, that will be annotated at the back
of the title (CLOA). They shall likewise be responsible for the
collection and remittance of the same.

IX
Cancellation of Annotations at the Back of the CLOA/Title

Upon full payment of the obligations as annotated at the back of the CLOA/title by the beneficiary,

A. The MARO shall — Recommend to the PARO the issuance of a Certificate of Full Payment to the concerned beneficiary.

B. The PARO shall —

1.       Based on the recommendation of the MARO, issue and sign a Certificate of full Payment by the beneficiary; and

2.       Advise the concerned beneficiary to present the same to
the ROD for the cancellation of all the annotations at the back of his
CLOA/title.

C. The ROD shall — cancel all annotations at the back of the CLOA/title.

X
Monitoring/Reporting

A. The MARO shall —

1.       Record and prepare report on CLOAs distributed to the beneficiaries; and

2.       Submit report to the PARO.

B. The PARO shall —

1.       Cross check the CLOAs distributed as against the CLOAs registered; and

2.       Submit progress reports to the BLAD, copy furnished the Regional Director.

C. The BLAD shall —

1.       Review the report and enter the data into the computer for updating;

2.       Generate a monthly summary report on the status and number of CLOAs issued;

3.       Transmit the summary status report to the MIS for further distribution.

D. The FOG shall —

1.       Conduct quarterly field verification and validation of reports;

2.       Assess the program on the basis of the above and prepare pertinent recommendations to the DAR Executive Committee; and

3.       Upon completion of the CLOA operation, work for the turn-over of the landed estates to the local government.

XI
Effectivity and Repealing Clause

This Order shall take effect ten (10) days after publication in two
(2) national newspaper of general circulation, pursuant to Section 49 of
RA 6657. All other Orders, Circulars, Memoranda, and Rules and
Regulations or portions thereof inconsistent herewith are hereby
revoked, cancelled, or modified accordingly, otherwise, they shall have
suppletory effect.

Adopted: May 1990

(SGD.) BENJAMIN T. LEONG
Secretary