MODES OF ACQUIRING LANDS FOR DISTRIBUTION UNDER CARP: Voluntary Offer to Sell (VOS) & Voluntary Land Transfer(VLT)

RA 6657

Sec. 19. Incentives for Voluntary Offers for Sales Landowners, other than banks and other financial institutions, who voluntary offer their lands for sale
shall be entitled to an additional 5 % cash payment.
Sec. 20. Voluntary Land Transfer Landowners of agricultural lands subject to acquisition under this Act may enter into voluntary arrangement for direct
transfer of their lands to qualified beneficiaries subject to the following guidelines:
(a) All notices for voluntary land transfer must be submitted to the DAR within the first year of the implementation of the CARP. Negotiations
between the landowners and qualified beneficiaries covering any voluntary land transfer which remain unresolved after 1 year shall not be
recognized and such land shall instead be acquired by the government and transferred pursuant to this Act.
(b) The terms and conditions of such transfer shall not be less favorable to the transferee than those of the governments standing offer to purchase
from the landowner and to resell to the beneficiaries, if such offers have been made and are fully known to both parties.
(c) The voluntary agreement shall include sanctions for non-compliance by either party and shall be duly recorded and its implementation monitored
by the DAR.
VOLUNTARY OFFER TO SELL (VOS)
What is the VOS scheme?

VOS is a scheme wherein landowners come forward and voluntarily offer their agricultural lands for coverage regardless of the phasing. The DAR
encourages this mode because VOS generally ensures the cooperation of the landowners.
The implementing policy guidelines on VOS
a.
Administrative Order No. 11, Series of 1994 Revising the Rules and Regulations Covering the Valuation of Lands Voluntarily Offered or
Compulsorily Acquired as Embodied in Administrative Order No. 06 Series of 1992;
b.
Administrative Order No. 01, Series of 1993 An Order Amending Certain Provisions of Administrative Order No. 09, Series of 1990 Entitled
"Revised Rules Governing the Acquisition of Agricultural Lands Subject to Voluntary Offer to Sell and Compulsory Acquisition Pursuant to RA 6657";
and Amendments to AO No. 09, Series of 1990.
DAR AO No. 09, Series of 1990.
REVISED RULES GOVERNING THE ACQUISITION OF AGRICULTURAL LANDS SUBJECT OF VOLUNTARY OFFER TO SELL AND COMPULSORY
ACQUISITION PURSUANT TO RA 6657
1.
Voluntary Offer to Sell (VOS)

a.
All private agricultural lands voluntarily offered by landowners for sale to the government
b.
All other agricultural lands transferred to the DAR pursuant to Executive Order No. 407 dated June 14, 1990. (ACCELERATING THE
ACQUISITION AND DISTRIBUTION OF AGRICULTURAL LANDS, PASTURE LANDS, FISHPONDS, AGRO-FORESTRY LANDS AND OTHER
LANDS OF THE PUBLIC DOMAIN SUITABLE FOR AGRICULTURE)
[This AO supersedes AO No. 03, Series of 1989, AO No. 14-A andAO No. 19, Series of 1989, AO No. 09, Series of 1990, and AO No. 10, Series of
1991]
c.
Administrative Order No. 05, Series of 1992 Clarificatory Guidelines and Amendment to Administrative Order No. 9, Series of
1990Guidelines
Administrative Order No. 05, Series of 1992
II
GOVERNING RULES

A.

The DAR may allow the withdrawal of voluntary offers to sell in the following instances:
1.
The portion subject of VOS withdrawal is part of the landowner's retained area of not more than five (5) hectares and provided no payment has
been made to the offeror/landowner;
2.
The VOS is being withdrawn to wait for compulsory coverage under Phase III-A (starting June 1992) or Phase III-B (June 1994), provided that
the Notice of Valuation for the offered property has not been served to the offeror/landowner,
3.
The VOS withdrawal is designed to shift the mode of acquisition and compensation through the Voluntary Land Transfer/Direct Payment
Scheme (VLT/DPS); and
B.
The DAR may reject a voluntary offer to sell in the following instances:
1.
the landholding is not suitable for agriculture, or is underdeveloped and has a slope more than eighteen (*18%) percent pursuant to the Joint
Memorandum Circular of the AR-LBP-DENR-DA, dated 27 January 1992;
2.
There are no takers or agrarian reform beneficiaries (ARBs) of the land for valid reasons (e.g., peace and order situation prevailing in the area),
without prejudice to future coverage of the area under the CARP; and
3.
The only identified ARBs are the qualified children of the land-owner. Cdpr
C.
The DAR may also allow the withdrawal of a VOS or lift a Notice of acquisition over a parcel of land if the subject landholding is determined by
the DAR to be more suitable for a townsite, resettlement site or institutional needed to address a matter of national interest or concern in a calamity,
situation. In this regard, the DAR rules and regulations on land use conversion and payment of disturbance compensation shall thereafter be followed.
This does not preclude however, the DAR from issuing another Notice of Acquisition on the same areas in the future should the DAR find justifiable
conditions to warrant such issuance.
WHERE SHOULD THE LANDOWNER FILE THE APPLICATION FOR VOS ?

-Application for VOS can be filed either at the Central Office, or at any field office of DAR. However, the receiving office should forward the application
to the MARO of the municipality where the land is located.
What incentives are given to landowners who offer their lands under VOS?

-The cash portion of the compensation to the landowner is increased by five percent (5%), while the LBP bond portion is correspondingly decreased by
five percent. However, this incentive is not available to banks and other financial institutions.
It should be noted that the total compensation is not increased, only the proportion of the cash component.
May an agricultural land which has been mortgaged also be voluntarily offered under CARP ?

-Yes. In this case, the MARO should secure a statement of account from the creditor and recommend the settlement of the obligation through payment in
LBP bonds.
Can government financial institutions voluntarily offer foreclosed but redeemable properties which are not yet transferred to them ?

-No. The GFIs have to wait for the expiration of the redemption period.
Are landowners allowed to withdraw lands offered under the VOS scheme?

-No. The exceptions are the instances provided in Administrative Order No. 05, Series of 1992, namely:
a.
If the subject landholding is part of the landowner's retained area, provided the landowner has not yet received any payment;
b.
If the landowner wants to shift the mode of acquisition from VOS to VLT/DPS;

c.
If the offered land is to be covered in 1994 and the landowner wants to wait for the compulsory coverage under Phase III-B. If the Notice of
Valuation has been served, however, the withdrawal may no longer be allowed.
d.
If the DAR determines the landholding to be more suitable for a town site, resettlement or institutional site to address a calamity situation. It
should be noted that this case is limited to calamity situations. Further, the approval of the withdrawal of the VOS does not automatically authorize the
land use conversion of the land. The owner must still apply for conversion.
What are the instances in which the DAR may reject a VOS application?

-The DAR may reject a voluntary offer to sell in the following instances:
a.
If the land is not suitable for agriculture, or has more than 18% slope and is underdeveloped;
b.
If there are no takers or beneficiaries of the land for valid reasons (e.g., peace and order situation) without prejudice to future coverage of the area
under CARP; and
c.
If the only identified agrarian reform beneficiaries (ARBs) are the qualified children of the landowner.
VOLUNTARY LAND TRANSFER/DIRECT PAYMENT SCHEME (VLT/DPS)
What is the VLT/DPS mode?

VLT/DPS is a scheme wherein a landowner of an agricultural land covered by CARP and the qualified beneficiaries of such land agree to the direct
transfer of the ownership of the land, as provided for under Sections 20 and 21 of RA 6657. The area to be transferred should not, however, be less than
the area which the government through compulsory acquisition would otherwise acquire. Administrative Order No. 13, Series of 1991, embodies the
rules and procedures governing VLT/DPS.
Administrative Order No. 13, Series of 1991,
Operating Procedures
1.
Landowner Accomplish the Notice/Application for Voluntary Land Transfer/Direct Payment Scheme (VLT/DPS Form No. 1) and submit the

same to the Municipal Agrarian Reform Office concerned together with the following documents:

Landowner's Information Sheet (CARP Form No. 1.1, Revised May, 1990)

Beneficiary's Information Sheet (CARP Form No. 3)

Agreement of Voluntary Land Transfer (VLT/DPS Form No. 5)

Documents required under Item C.1 (if titled) or C.2 (if untitled property) of this Administrative Order. For untitled properties, a sketch plan of
the farmholding, instead of a survey plan, may be initially submitted.
2.

Municipal Agrarian Reform Office (MARO)

a.
Review the landowner's Notice/Application and other accompanying documents. If in order, accomplish and post VLT/DPS Form No. 2 together
with the submitted draft VLT Agreement. The posting shall be for 15 days in the following places:

Barangay Hall or any conspicuous place in the barangay where the subject property is located; and Municipal Hall
b.
Simultaneous with the period of posting, conduct, with the assistance of the BARC, an investigation to verify or identify the land, the lawful
owner thereof, the ARBs, the productivity of the land, and the terms and conditions of the VLT Agreement, among others (use VLT/DPS Form No. 3).
c.
Immediately after the fifteenth day posting, call the parties to a conference (use VLT/DPS Form No. 4) to discuss and formalize the terms and
conditions of the VLT Agreement. Thereafter, record the highlights of the proceedings of the conference and ensure that the VLT/Agreement (VLT/DPS
Form No. 5) is prepared in five copies, all signed by the parties concerned and their witnesses.
d.
Complete the VLT/DPS documentation folder. The same should be forwarded to the PARO within five days after the end of the posting period.
3.
Provincial Agrarian Reform Office (PARO) Review the folder within 10 days from receipt. If found in order, endorse the folder to the RARO for
approval; otherwise, return the same to the MARO for appropriate action.
4.
Regional Agrarian Reform Office (RARO) Upon receipt of the VLT/DPS documentation folder, register the provisional VLT Agreement in a log
book. If the documentation is in order, approve the VLT Agreement through a Memorandum to the PARO (VLT/DPS Form No. 6), copy furnished the
MARO, the landowner, and the ARBs. Said Memorandum requires the PARO to cause the survey of the land, the execution of the individual Deeds of
Voluntary Land
Transfer [DVLT] (VLT/DPS Form No. 7), the generation of the CLOA, and the simultaneous registration of the DVLT and the CLOA with the Register
of Deeds. If the decision is for disapproval, the Memorandum shall state the reasons therefor.
The VLT/DPS Agreement shall be considered approved unless a notice/memorandum of disapproval by the RARO is received by the ARB within 30
days from its registration in a log book. The counting of the 30-day period may, however, be suspended upon due notice to the parties concerned in case
a protest is filed or, in extreme cases, if the RARO deems more time is needed to evaluate the documents.
May a landowner unilaterally decide to distribute his land through the VLT/DPS scheme ?

-No. An agreement between the landowner and the qualified ARBs as approved by the DAR is necessary.
What is the basic requirement in VLT/DPS?

-It is imperative that the ARBs give their informed consent to the landowner's VLT/DPS proposal. Specifically, this means that the ARBs should be made
aware of their rights and options under the law, particularly, the terms and conditions of land transfer under the "regular" compulsory acquisition mode.
Among others, the field implementor (Municipal Agrarian Reform Officer or Agrarian Reform Program Technologist MARO or SARPT/ARPT) must
explain to the ARBs: (1) that the land will sooner or later be acquired under CA subject to the phasing; and (2) about how much they will have to pay
under the CA mode.
VLT/DPS is a scheme favorable to the Government for two reasons. First, Government does not have to pay for the land. Second, the agreement between
the two parties facilitates land acquisition and distribution. The DAR, however, ought to ensure that the beneficiaries know what they are entering into
and that terms and conditions of the VLT/DPS are not disadvantageous to the ARBs.
Who are the qualified beneficiaries under VLT/DPS?

-The qualified beneficiaries are the same as those who would be beneficiaries if the land were to be covered under compulsory acquisition or voluntary
offer to sell. (See Sec. 22, RA 6657).
What is the prescribed period for the completion of VLT/DPS negotiations?

-Negotiations for VLT/DPS between the landowner and the beneficiaries must be completed and the agreement arrived at must be submitted within one
(1) year from the time the DAR receives the notice of application for VLT/DPS.
What if negotiations for VLT/DPS are not resolved after one year?

-If VLT/DPS negotiations remain unresolved after one year, the land shall be covered under compulsory acquisition.
When should the transfer of possession and land ownership of the land be done?

-The transfer of possession and ownership should be done immediately after the submitted VLT/DPS agreement is approved by the DAR. Certificates of
Land Ownership Award (CLOA) with the proper annotations to protect the landowner shall be issued to the beneficiaries.
May an agricultural land mortgaged to a bank be the subject of a VLT/DPS?

-No. Land titles with existing liens and encumbrances shall not be covered under the VLT/DPS scheme. This is a ruling made by DAR to simplify
VLT/DPS transactions, particularly to facilitate the immediate transfer of title to the ARBs.