DAR Administrative Order No. 02 (1996)

(NAR) VOL. 9 NO. 1 / JANUARY - MARCH 1998

[ DAR ADMINISTRATIVE ORDER NO. 02, s. 1996, August 06, 1996 ]

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.

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 mayvoluntarily 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.

IV. OPERATING PROCEDURES Responsible Forms/Documents Steps Activity Agency/Unit (Requirements)

A. Identification and Documentation For VOS only Files Letter Offer together with the basic ownership CARP Form No. 1 documents in any (Letter Offer) DAR office. The DAR Certified copy of LO office which received OCT/TCT Certified 1 the afore said copy of Tax DARMO documents forwards Declaration Copy of same to DAR the approved survey Municipal Office plan of property where the subject property is located Receives and reviews duly accomplished Refer to List of CARP Form No. 1 Documents Required with the attached Pursuant to RA 6657 1.a DARMO documents, gather under Different documents required as Situations (Annex maybe applicable to a “A”) particular situation.Acknowledges receipt of documents, advises LO on specific procedures and to submit additional documents, if any, to include the surrender 1.b DARMO 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 Gathers all appropriate documents similar to those enumerated 1. DARMO Same as above under VOS and prepares corresponding CF of LO. For EO 407 covered lands Owner’s Executes DOT in duplicatecopy of title favor of RP and Tax Declaration and 1 LO surrenders to DAR all other necessary appropriate documents to effect documents. the transfer of ownership Forwards duly executed DOT and Duly executed DOT appropriate Approved subdivision documents to ROD 1.a DARPO or segregation plan for registration of (ASP) with technical same and requests for descriptions the issuance of title in the name of RP. Registers DOT and issues TCT in the name of RP and 1.b ROD forwards owner’s duplicate certificate of title to PARO. Proceeds with the 1.c DARPO distribution of land. For VOS, CA and EO 407 2 DARMO Provides LBP thru The list should PARO list of contain the ff landholdings together with the certified copy of the title, taxdeclaration and - Name of LO approved survey plan or sketch plan of the - Title/TD No. property for scheduling of the - Area ocular inspection. - Location Sends Notice to BARC, DENR, DA, LBP and prospective ARBs on the schedule of the field CARP Form No. 2 investigation at least (Notice to Conduct two weeks in advance. Field Investigation) Invites the LO to join the field investigation, 3 DARMO to select his retention CARP Form No. 2.a area and to submit his (Invitation Letter to Statement of LO for the Field Production and Investigation) Income. If LO cannot be contacted, notice shall be published in a newspaper of national circulation. Conducts joint field investigation of the property with LBP, 4 DARMO DENR, DA, LO, BARC and prospective ARBs Prepares FIR and CARP Form No. 3 5 DARMO Land Use Map jointly (Field Investigation with LBP and BARC. Report) CARP Form No. 4 Screens/selects (Application to qualified ARBs and 6 DARMO Purchase and causes the signing of Farmer’s the APFUs Undertaking) Sends LO the Notice of Coverage together CARP Form No. 5 with a copy of the FIR 7 DARMO by personal delivery (Notice of with proof of service Coverage) or by registered mail with return card. 8 DARMO Posts a copy of the CARP Form No. 6 Notice of Coverage for seven (7) working (Certification of days in the bulletin Posting Compliance) board of the barangay and municipal halls where the property is located and issuesCertification of Posting Compliance CARP Form No. 7 Forwards claim folder 9 DARMO to PARO (CF Transmittal Memorandum) B. Review and Completion of Data/Documents Receives claim folder and forwards to the DAR-LBP Pre- Processing Unit 10 DARPO (PPU) for review/evaluation of documents. Gathers lacking documents, if any.

C. Land Survey Expedites survey activities and ensures that segregation/sub Approved subdivision division survey or segregation plan 11 DARPO returns are completed (ASP) with survey and approved by the technical descriptions DENR-LMS pursuant to existing guidelines. CARP Form No. 8 Forwards CF to LBP- 12 DAR-LBP-PPU LVLCO together with (Memorandum the ASP, if applicable. Request to Value the Land) D. Land Valuation and Compensation Receives and evaluates the CF for completeness, 13 LBP-LVLCO consistency and document sufficiency. Gathers additional valuation documents. Determines land Claims Valuation and 14 LBP-LVLCO valuation based on Processing Form valuation inputs (CVPF) Note: CFs where the land valuation amounts to more than P 3 million shall be forwarded to LBP- HO.Prepares and send CARP Form No. 9 Memo of Valuation, Claim Folder Profile (Memorandum of 15 LBP-LVLCO and Valuation Valuation and Claim Summary (MOV- Folder Profile and CFPVS) to PARO. Valuation Summary) Receives LBP’s MOV-CFPVS and ascertains the 16 DARPO completeness of the data and information therein. Sends Notice of Land Valuation and Acquisition to LO by personal delivery with proof of service or by CARP Form No. 10 registered mail with 17 DARPO return card, attaching (Notice of Land copy of MOV-CFPVS Valuation and and inviting LO’s Acquisition) attention to the submission of documents required for payment of claim. Posts a copy of the Notice of Land Valuation and Acquisition (NLVA) for at least seven (7) working days on the CARP Form No.11 bulletin board of the 18 DARPO provincial capitol, (Certification of municipal and Posting Compliance) barangay halls where the property is located and issues a Certification of Posting Compliance. Replies to Notice of Land Valuation and Acquisition and CARP Form No. 10.a submits documents 19 LO required for payment (LO’s Reply to of NLVA) 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 ValuationUpon receipt of LO’s Letter of Acceptance, CARP Form No. 12 sends Memorandum 20 DARPO to LBP to prepare the (Request to Pay) Deed of Transfer and to Pay the LO. Prepares DOT for LO to execute and deposits the compensation proceeds in the name of LO in cash and in bonds. The entire LBP-LVLCO deposit may be CARP Form No. 13 21 withdrawn by the LO; LBP-HO however, the actual (Deed of Transfer) release of same shall only be effected upon LO’s submission of all documentary requirements. Executes DOT and submits payment CARP Form No. 13 22 LO requirements to LBP within seven (7) (Deed of Transfer) working days. Should the LO fail to CARP Form No. 16 submit the required documents within (Notice of LO’s seven (7) working Non-Compliance with days from LBP receipt Requirements) of the DAR Request to Pay, notifies DAR of such failure by LO CARP Form No. 17 and also issues to DAR the Certification (Certificate of of Deposit. Payment) Thereafter, the DAR shall request ROD to CARP Form No. 18 transfer the Certificate of Title covering (Request to Issue subject property in TCT in the Name of favor of the RP. RP) 23 LBP-LVLCO Forwards DOT CARP Form No. 13 together with the LBP-HO owner’s duplicate (Deed of Transfer) certificate of title and Certified copy of ASP ASP(if applicable) to and its technical ROD for description approved by DENR, if property registration.is partially covered by CARP Registers DOT and issues TCT in the name of RP, then 24 ROD forwards owner’s duplicate certificate of title to LBP. Prepares Payment Release Form upon LO’s compliance with all the requirements for payment. In case LBP Payment the land is 25 LBP-LVLCO encumbered, pays the Release Form mortgagee bank/creditor upon LO’s request and pays the balance of the proceeds to the LO. Surrenders the owner’s duplicate certificate of title (RP) Owner’s duplicate LBP-LVLCO to PARO which will 26 in turn transmit said certificate of title LBP-HO copy to ROD to (RP) enable CLOA registration. D.2 Where LO rejects the Land Valuation If the LO rejects the offered price or fails to CARP Form No. 10.a reply within thirty (30) days from receipt of (LO’s Reply to NLVA) the Notice of Land Valuation and 20 DARPO Acquisition forwards to LBP the Request to Deposit the CARP Form No. 15 compensation proceeds in cash and in bonds in (Request to Deposit) the name of the LO. 21 DARPO Requests the DARAB/ CARP Form No. 14 RARAD/PARAD to conduct administrative (Advice to proceedings pursuant DARAB/RARAD/PARAD) to DARAB guidelines, as the case maybe, furnishing therein a copy each of the LO’s Letter of Rejection, Notice of Land Valuationand Acquisition and LBP’sMemorandum of Valuation. Deposits the compen sation proceeds in the LBP-LVO name of LO and issues CARP Form No. 17 22 Certification of Deposit LBP-HO to DAR through the (Certification of Deposit) PARO, copy furnished the LO. The entire deposit may be withdrawn by the CARP Form No. 17.a LO; however, actual release of same shall be (Confirmation of subject to LO’s Coverage and Transfer For submission of all Claims of Individual LOs -requirements for Still pending with payment and execution 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) Upon receipt of the Certification of Deposit from LBP, transmits the same to the Register of Deeds concerned, including CARP Form No. 18 the approved 23 DARPO segregation/subdivision (Request to Issue TCT in plan of subject the Name of RP) property, if partially covered and simultaneously requests the ROD to issue TCT in the name of RP. Issues new TCT in the name of RP and forwards owner’s New TCT in the name of duplicate certificate of RP and owner’s duplicate 24 ROD title in the name of RP copy of title in the name of to LBP-LVO which RP furnishes the PARO a certified xerox copy of the same. 25 DARAB/ Simultaneously with Activity Nos. 22-24 RARAD/ above, the DARAB/ RARAD/PARADconducts summary PARAD administrative proceedings; renders decision and informs parties concerned of the same. Upon receipt of the Certificate of Finality of the DARAB Order, requests LBP to pay CARP Form No. 17.c the LO in accordance (Confirmation of with the DARAB Coverage and Transfer for decision; requests LBP Claims of Individual LOs to prepare Already decided by Confirmation of DARAB) Coverage and Transfer 26 DARPO for LO to accomplish. Thereafter, LBP CARP Form No. 17.d follows Activity Nos. 25-26 under D.1. In (Confirmation of case the LO still rejects Coverage and Transfer for DARAB decision, he Claims of Corporate LOs -may go to the Special Already decided by Agrarian Court (SAC) DARAB) for the final determination of just compensation.

E. Land Distribution Forwards to DARMO the certified copy of the TCT in the name of RP with the instruction to take Certified copy of TCT 27 DARPO over physical in the name of RP 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.

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 thePhilippines 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. Adopted: 06 Aug. 1996

(SGD.) ERNESTO D. GARILAO Secretary