DEPARTMENT OF AGRARIAN REFORM

DEPARTMENT OF AGRARIAN REFORM

Diliman, Quezon City. Philippines
Diliman, Quezon City. Philippines

FAQs on:

UNAUTHORIZED TRANSFERS
or CONVEYANCES
Administrative Order No. 8, series of 2011
 Unauthorized Transfers or Conveyances

What does the rules on unauthorized transfer or conveyances provide?

The Administrative Order No. 8, series of 2011 or the rules on unauthorized transfer or
conveyances streamline the land acquisition and distribution process. It strengthen and
supplement other CARP guidelines to ensure the coverage, acquisition and distribution
of lands involving illegal transaction.

What are the general premises with regards to transfers and conveyances of CARP
covered lands?

The general premises with regard to transfers and conveyances of Comprehensive

Agrarian Reform Program (CARP) covered lands are as follows:

Section 6, paragraph 1 of Republic Act No. 6657 states in no case shall retention by
the landowner exceed five (5) hectares.

Paragraph 4 of the same section further states that Upon the effectivity of this act,
any sale, disposition, lease, management contract or transfer of possession of private
lands executed prior to RA 6657 shall be valid only when registered with the
Register of Deeds (ROD) within 3 months after the effectivity of this Act.

Section 70 of the same law states that disposition of private agricultural lands
retained by the landowner as a consequence of Sec. 6 shall be valid as long as the total
landholdings that shall be owned by the transferee inclusive of the land to be acquired
should not exceed 5 hectares. Thus, any sale or disposition of agricultural lands after
the effectivity of this Act found to be contrary to the provisions of RA 6657, as
amended, shall be null and void.

When is land transfer unauthorized?

A.O. No. 8, series of 2011, defined Unauthorized transfer as any sale, disposition or
transfer of possession to any private entity on or after June 15, 1988 by a landowner
who owns one or more agricultural lands with an aggregate size of more than five
hectares.

Unauthorized transfers also include those transfers made:

After the NOC was duly served to the LO
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 Unauthorized Transfers or Conveyances

prior to 15 June 1988 if the said transfers were not registered within three months
after 15 June 1988 or on or before 13 September 1988.

What are authorized transfers?

Authorized transfers are those:

1. Made through hereditary succession;

2. Consolidation by banks to its name of foreclosed agricultural landholdings, provided

that the mortgage, foreclosure and consolidation was done in accordance with its
ordinary course of business; and

3. Sale or disposition by banks of agricultural landholdings that it has foreclosed and

consolidated in its name, provided that it is sold or disposed of within the period of
five (5) years described by Section 52 of RA 8791, otherwise known as the General
Banking Law.

Who certifies that a land transfer is unauthorized?

It is the Provincial Agrarian Reform Officer (PARO) who certifies that the land transfer is
unauthorized. (Section 3, AO No. 8, series of 2011)

To whom should the PARO issue the Notice of Coverage (NOC) for agricultural
landholdings which was subject of an unauthorized land transfer?

The PARO should issue the NOC to the person or entity registered as the said
landholdings owner as of June 15, 1988 (herein referred to as the original landowner
(Section 4 , AO No. 8, Series of 2011)

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 Unauthorized Transfers or Conveyances

Who qualifies as beneficiaries for landholdings subject of an unauthorized

transfers?

The agricultural lessees, tenants and farmworkers of both the original landowner and
the currently registered landowner/s are qualified to be farmer beneficiaries (FBs) of
the subject landholding.

The landowners (original and currently registered) may also submit a duly attested list
of his/her/its agricultural lessees, tenants and regular farmworkers.

However, potential beneficiaries of the currently registered landowner may also apply
on their own to qualify as beneficiary.

Who can claim the proceeds of the just compensation, if there are more than one
currently registered Transfer Certificate of Title (TCT)?

In case there are more than one currently registered Transfer Certificate of Title
covering the entire subject land, the Memorandum of Valuation (MOV) shall state the
value of the entire subject land and proportion each currently registered landowner has
the right to pls check missing link with respect to the just compensation.

The Land Bank of the Philippines shall only release the just compensation proceeds
covering the portion of the landholding subject of unauthorized transfer to the person
or entity who is registered as the landowner at the time the Certificate of Deposit
(COD) was issued.

How does DAR notify the landowner?

The DAR shall notify the landowner/s through a Notice of Land Valuation and
Acquisition (NLVA).

This Notice shall still be issued to the original landowner, and shall states that the LBP
shall only release the just compensation proceeds covering the portion of the
landholding subject of unauthorized transfer to the person or entity who is registered
as the landowner at the time the COD was issued.

Certified true copies of the NLVA shall be furnished to the person/s or entity/ies who
is/are registered as the landowner at the time the COD was issued.
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 Unauthorized Transfers or Conveyances

Is there a need to conduct a re-documentation of the Claim Folder for

unauthorized Transfers?

There is no need to conduct a re-documentation of the Claim Folder.

However, if the COD has yet to be issued at the time the PARO discovered the
unauthorized transfers, the PARO shall:

amend the information pertaining to the landowner to include the subsequent

transferees as alternate landowners and payees if the Claim Folder has not yet
transmitted the to the LBP; or
inform the LBP of such unauthorized transfer so that it may be included in the
valuation process of the LBP, if the Claim Folder has already transmitted.

Can the DAR Secretary prescribe special rules to govern special cases of
landholdings subject of unauthorized transfers?

Yes. The DAR Secretary may prescribe special rules to govern special cases of
landholdings subject of unauthorized transfers.

What penalties shall apply against the transfer of agricultural lands made without
prior clearance from the DAR?

Penalties provided by other DAR Administrative Orders/Memorandum Circulars against

the transfer of agricultural lands made without prior clearance from the DAR shall still
apply.

Examples are MC 18, Series of 2004 and Joint DAR-LRA MC 16, Series of 2001. These
MCs follow the general premise that fall under prohibited acts and omissions that are
punishable under Section 74 of RA 9700 which states that:

Any person who knowingly or wilfully violates the provisions of this Act shall be
punished by imprisonment of not less than one (1) month to not more than three (3)
years or a fine of not less than One thousand pesos (P1,000.00) and not more than
Fifteen thousand pesos (P15,000.00), or both, at the discretion of the court.

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 Unauthorized Transfers or Conveyances

Provided, That the following corresponding penalties shall be imposed for the specific
violations
hereunder:

"(a) Imprisonment of three (3) years and one (1) day to six (6) years or a fine of not
less than Fifty thousand pesos (P50,000.00) and not more than One hundred fifty
thousand pesos (P150,000.00), or both, at the discretion of the court upon any
person who violates Section 73, subparagraphs (a), (b), (f), (g), and(h) of Republic
Act No. 6657, as amended; and

"(b) Imprisonment of six (6) years and one (1) day to twelve (12) years or a fine of not
less than Two hundred thousand pesos (P200,000.00) and not more than One
million pesos (P1,000,000.00), or both, at the discretion of the court upon any
person who violates Section 73, subparagraphs (c), (d), (e), and (i) of Republic
Act No. 6657, as amended.

"If the offender is a corporation or association, the officer responsible therefore shall
be criminally liable."

Produced by:
DEPARTMENT OF AGRARIAN REFORM
Bureau of Agrarian Reform Information and Education (BARIE)
Diliman, Quezon City. Philippines.

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