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April 18, 1983




TO                :     All Regional Directors, District Officers, Team Leaders, Field Personnel

SUBJECT    :     Supplemental Guidelines to Govern Transfer Action of Areas Covered by
                           P.D. 27 by Reason of Abandonment, Waiver of Rights and Illegal Transactions


1.      SCOPE

            To further accelerate the handling of CLT transfer action cases in relation to the processing of claim folders and landowners compensation, these supplemental guidelines are issued to govern the investigation and hearing of such cases. Under these guidelines, the following situations shall constitute the basis for a CLT transfer action: abandonment/waiver of rights over the farmlot or refusal to become beneficiaries of P.D. No. 27 and illegal transaction involving the farmlot.   EScHDA

1.         Abandonment

Farmlots shall be considered abandoned under any of the following grounds:

a.         Failure to cultivate the lot due to reasons other than the non-suitability of the land to agricultural purposes, for at least two (2) calendar years and to pay the amortizations for the same period.

b.         Permanent transfer of residence by the beneficiary and his family which has rendered him incapable of cultivating the lot.

c.         Relinquishment of possession of the lot for at least two (2) calendar years and to pay amortizations for the same period.

2.         Waiver of Rights

Waiver of rights over the farmlot by a beneficiary in favor of the government for redistribution/disposition shall be in writing and duly notarized by any person authorized to administer oath.

3.         Illegal Transactions

The following transaction shall be considered illegal:

a.         Transfer of rights, ownership of the farmlot except through hereditary succession or to the government; (Memo Circular No. 7 Series of 1979)

b.         Surrender of the farmlot to the former landowner;

c.         Employment of a tenant in the cultivation of the lot.


1.         Abandonment and waiver of rights proceeding shall be governed by Ministry Memorandum Circular No. 8, S. of 1980.

2.         Illegal transaction proceedings shall be governed by Ministry Memorandum Circular No. 7, S. of 1979.   TaISDA


The investigation officer shall submit a report of his findings together with all documentary evidences, which shall state among others, the following:

1.         Identification of the farmlot, i.e. CLT/EP number, location and area of the lot;

2.         Name and address of beneficiary;

3.         A brief narration of the circumstances including dates of occurrences which constitute the grounds for CLT transfer action as herein above-enumerated;

4.         Name of actual occupant/cultivator other than the beneficiary, length of occupancy, status of occupant/cultivator, whether a transferee, lessee, share tenant, hired laborer, farmhand, squatter, etc. and circumstances surrounding such occupation/cultivation;

5.         In case reallocation of the lot is necessary, the report shall include the names of at least three (3) persons and their respective qualifications, who maybe considered in the reallocation of the farmholding, from among, but not limited to the following:

a.         Immediate member of the family who helped the beneficiary in the cultivation of the farmlot;

b.         An EP/CLT holder who has the smallest farmholding which is within the same landholding as the farmholding to be reallocated; Provided that the re-allocation would not result in an aggregate area which exceeds the areas prescribed under P.D. 27;

c.         The son of any OLT beneficiary who is a farmer and a head of a family with the same qualifications under item letter (d) below;

d.         The transferee in an illegal transaction who has the following qualifications:

i.          landless citizen or with uneconomic family-size farm;

ii.         capable of personally cultivating the land;

iii.       member of the SN or a duly registered cooperative;

iv.        resident of the barangay where the land is located or of the adjoining barangay of the same municipality;

v.         willing to accept the obligations of a tenant-beneficiary based on approved land valuation;

6.         Other necessary information;   TAacCE

7.         Comments and recommendations of the Regional Director.


            Pending the disposition/allocation of the land subject of CLT transfer action, the actual occupant thereof whether a transferee, lessee, share tenant, hired laborer, farmhand, etc., may be allowed to temporarily cultivate the subject farmholding provided that he pays a rental for the use of the land equivalent to at least 25% of the net produce per harvest of any agricultural crop, the same to be paid to the government through the Land Bank of the Philippines for LBP financed areas or otherwise to the landowner concerned as the case may be. In case the actual occupant is finally adjudged the allocatee, such rental payments shall partake the nature of advanced amortization payments.

            It shall be the obligation of the allocatee to amortize to the LBP the full value of the landholding as determined under P.D. 27, except where the allocatee is an immediate member of the family of the affected beneficiary, in which case all previous payments made shall be credited in his favor.


            All Orders issued in the foregoing cases shall become final and executory 30 days after the beneficiary and/or parties in interest have received a copy of said Order which shall be sent to the last known address of the beneficiary/party affected.


            This Memorandum Circular shall take effect immediately. Quezon City, April 18, 1983.



Minister  CDTHSI


Department of Agrarian Reform
Elliptical Road, Diliman
Quezon City, Philippines
Tel. No.: (632) 928-7031 to 39

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