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March 18, 1993



SUBJECT    :     An Order Amending Certain Provision of Administrative Order No. 9, Series of 1990 Entitled "Revised Rules and Procedures Governing the Acquisition of Agricultural Lands Subject of Voluntary Offer to Sell and Compulsory Acquisition Pursuant to RA 6657"



For more effective and expeditious documentation and processing of claims of landowner whose properties are covered under the Comprehensive Agrarian Reform Program (CARP) pursuant to Republic Act No. 6657, these Rules are hereby prescribed.

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 or RA 6657, and those acquired under Executive Order No. 407 dated June 14, 1990, as amended.   acIASE


           All private agricultural lands voluntarily offered by landowner for sale to the government.


           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.        EO 407 ACQUISITION

           All other agricultural lands transferred to the DAR pursuant to Executive Order No. 407 dated June 14, 1990, as amended.


A.        All landowners whose lands are subject for coverage under RA 6657 may voluntarily offer their lands for sale to the government. However, lands upon which notices of coverage have already been sent by the government and received by the landowner shall no longer be considered as voluntary offered lands.

B.        If the land is tenanted, the ARBs shall continue to pay lease rentals based on existing guidelines on leasehold operation until such time as the landowner signs the Deed of Transfer, or the Land Bank of the Philippines establishes a Trust Account in the landowner's name, as the case may be. In case, there is any standing crop on the land at the time of its 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.


Step           Responsible                   Activity                                    Forms/Document
                  Agency/                                                                            (Requirements)

                                             A.    Identification and

1                LO                      Accomplishes letter                            CARP Form No. 1
                                             offer and files same                            Certified copy of
                                             together with the basic                       OCT/TCT Certified
                                             ownership documents in                    copy of Tax 
                                             any office of DAR (For                       Declaration Copy of the
                                             VOS only). The DAR                          approved survey plan
                                             office which received                         or sketch plan of the
                                             the aforesaid documents                   property
                                             forwards same to DAR
                                             Municipal Office where
                                             the subject property is

2                DARMO             Receives and reviews                         Refer to List of Do-
                                             duly accomplished                               cuments Required
                                             CARP Form No. 1 with                        Pursuant to RA 6657
                                             the attached documents;                     Under Different
                                             gathers and completes the                  Situations (Annex "A")
                                             documents required as may
                                             be applicable to a particular

3                DARMO             Informs LO on how his                      Refer to Annex "A"
                                             claim will be routed
                                             and processed and furnishes
                                             him with checklist
                                             of requirements under
                                             applicable situation.

4                DARMO             Prepares the corresponding

                                             per landowner/landholding.

5                DARMO             Issues Notice of Coverage                 CARP Form No. 2
                                             to LO by personal delivery
                                             with proof of service,
                                             or by registered mail with
                                             return card, informing
                                             him that his property
                                             is now under CARP
                                             coverage and for LO to
                                             select his retention area,
                                             if he desires to avail
                                             of his right of retention;                      
                                             and at the same time                         
                                             invites him to join the                         
                                             field investigation to be 
                                             conducted on his property                 
                                             which should be scheduled
                                             at least two weeks in advance
                                             of said notice.

                                             A copy of said Notice                        CARP Form No. 17
                                             shall be posted for at                         
                                             least one week on the                       
                                             bulletin board of the                          
                                             municipal and barangay                     
                                             halls where the property                    
                                             is located. LGU office                       
                                             concerned notifies DAR                    
                                             about compliance with                      
                                             posting requirement thru                    
                                             return indorsement on                       
                                             CARP Form No. 17.                        

6                DARMO             Sends notice to the LBP,                   CARP Form No. 3
                                             BARC, DENR representatives
                                             and prospective ARBs of the
                                             schedule of the field investigation
                                             to be conducted on the
                                             subject property.                              

7                DARMO             With the participation of                     CARP Form No. 4
                  BARC                 the LO, representatives                      Land Use Map
                                             LBP of the LBP, BARC,                   
                  DENR                 DENR and prospective                     
                  Local                   ARBs, conducts the                          
                  Finance               field investigation on                          
                                             subject property to identify
                                             the landholding, determines its
                                             suitability and productivity; and
                                             jointly prepares the Field
                                             Investigation Report (FIR) and          
                                             Investigation shall proceed                
                                             even if the LO, the representatives
                                             of DENR or prospective ARBs
                                             are not available provided, they were
                                             given due notice of the                      
                                             time and date of the investigation
                                             to be conducted.                               

                                             Similarly, if the LBP representative
                                             is not available or could not come
                                             on the scheduled date, the field
                                             investigation shall also be                   
                                             conducted, after which the                
                                             duly accomplished Part I                   
                                             of CARP Form No. 4                       
                                             shall be forwarded to the
                                            LBP representative for the                
                                             validation. If he agrees to                  
                                             the ocular inspection report
                                             of DAR, he signs the FIR
                                             (Part I) and accomplishes Part
                                             II thereof.

                                             In the event that there is                    
                                             a difference or variance                     
                                             between the findings of                      
                                             the DAR and the LBP as                  
                                             to the propriety of                     
                                             covering the land under CARP,                
                                             whether in whole or in                       
                                             part, on the issue of                   
                                             suitability to agriculture,                            
                                             degree of development                      
                                             or slope, and on issues                      
                                             affecting idle lands, the                      
                                             conflict shall be resolved                   
                                             by a composite team of                     
                                             DAR, LBP, DENR and                    
                                             DA which shall be binding                 
                                             to both DAR and LBP                      
                                             pursuant to Joint                     
                                             Memorandum Circular of the                      
                                             DAR, LBP, DENR and DA              
                                             dated 27 January 1992.                    

8                DARMO             Screens prospective ARBs                CARP Form No. 5
                  BARC                 and causes the signing of the              
                                             Application to Purchase and              
                                             Farmers' Undertaking (APFU).         

9                DARMO             Furnishes a copy of the duly               CARP Form No. 4
                                             accomplished FIR to the                   
                                             landowner by personal                      
                                             delivery with proof of                        
                                             service or registered mail                   
                                             with return card and posts                 
                                             a copy thereof for at least                  
                                             one week on the bulletin                    
                                             board of the municipal                       
                                             and barangay halls where                  
                                             the property is located                      
                                             LGU office concerned                       CARP Form No. 17
                                             notifies DAR about                    
                                             compliance with posting                
                                             requirement thru return                     
                                             indorsement CARP Form No. 17.               

                                             B.    Land Survey

10              DARMO             Conducts perimeter or                       Perimeter on 
                  and/or                 segregation survey                             Segregation Survey Plan
                  DENR                 delineating area covered by                    
                                             Local office                                       OLT, "uncarpable" areas    
                                             such as 18% slope and                     
                                             above, unproductive/                    
                                             unsuitable to agriculture,                       
                                             retention, infrastructure, etc.              
                                             In case of segregation or                   
                                             subdivision survey, the                      
                                             plan shall be approved                      
                                             by DENR-LMS.                              

11              DARMO             Forwards VOCF/                              CARP Form No. 6
                                             CACF to DARPO                           

                                             C. Review and Completion
                                             of Data/ documents

12              DARPO              Review's and evaluates                      VOCF/CACF 
                                            the pertinent forms and                         containing supporting
                                             documents contained in                       documents needed
                                             the VOCF/CACF for                            in claim processing
                                             completeness and                               (See Annex "B")
                                             consistency, otherwise, gathers,                  
                                             lacking basic documents                    
                                             to complete the requirements                     
                                             for processing as                     
                                             may be applicable to a                      
                                             particular situation.                            

13              DARPO              Forwards the VOCF/                    VOCF/CACF CARP
                                             CACF to LBP-LVO                         Form No. 7
                                             using the DAR                        
                                             Memorandum Request to                            
                                             Value the subject land                       
                                             including any improvements                       
                                             and/or facilities                        

                                             D.     Land Valuation                      
                                                      and Compensation                 

                                             Receives and evaluates                     
                                             the VOCF/CACF for                       
                                             completeness, consistency                      
                                            and document sufficiency.                                        

14              LBP -                  Gathers data and inputs                      Comparable Sales
                  LVO                   needed for a more                                Mortgage Loan
                                             appropriate determination of                       Value
                                             valuation of subject land.                    Appraisal Report

15              LBP                    Gathers data and inputs                    CF profile & Valuation
                  LVO                   needed for a more appropriate         Summary
                                             priate determination of                       (Attachment to
                                             valuation of subject land.                    CARP Form No. 8)

16              LBP -                  Determines the land                          CARP Form No. 8

                  LVO                   valuation in accordance with                     

                                             existing guidelines and                       

                                             prepares the Claim Folder                 

                                             Profile and Valuation                         

                                             Summary specifying                          

                                             therein lacking documents                 

                                             to be submitted by the LO                

                                             which are required in the                   

                                             payment of his claim                          

                                             Note :VOCF/CACF                        

                                             where the land valuation                    

                                             amounts to more than                        

                                             P3 million shall be forwarded                       

                                             to LBP Head Office.            

17              LBP -                  Notifies the DAR through                   CARP Form No. 8

                  LVO                   the PARO of the computed               

                  LBP-HO             land valuation using the                      

                                             Memorandum of Valuation                


18              DARPO              Prepares/issues the Notice                 CARP Form No. 9

                                             of Land Valuation and                        attaching Memo of

                                             Acquisition to the LO                         Land Valuation and

                                             attaching a copy of the                       CF Profile and

                                             LBP's Memorandum of                      Valuation

                                             Valuation, Claim Folder                     Summary.

                                             Profile and Valuation Summary.

19              DARPO              Posts a copy of the Notice                 CARP Form No. 9

                                             of Land Valuation and                       

                                             Acquisition for at least                       

                                             one week on the bulletin                       

                                             board at the provin-                     

                                             cial capitol, municipal                        

                                             hall and barangay hall                        

                                             where the property is located.           

                                             LGU office concerned                       CARP Form No. 17

                                             notifies DAR about                           

                                             compliance with posting                         

                                             requirement thru                         

                                             return indorsement on                       

                                             CARP Form No. 17                         

                                             D.1.  Where LO Accepts                 

                                             the Land Valuation                         

20              DARPO              If the LO accepts the                         CARP Form No. 10

                  LO                      offered price, sends                           CARP Form No. 11

                                             Memorandum to LBP                       

                                             to prepare the Deed of                      

                                             Transfer (DOT) and to                      

                                             Pay the Landowner                           

                                             attaching thereto the                          

                                             LO's letter of acceptance                          

                                             including the                             

                                             submitted documents                        

                                             necessary in LO's                      


21              LBP -                  Opens trust account in                       CARP Form No. 13

                  LVO                   the name of LO. However,                      

                  LBP-HO             the actual release                                CARP Form No. 15

                                             of full payment shall                           

                                             only be effected upon                         CARP Form No. 16

                                             LO's compliance of all                      

                                             the requirements. Should                   

                                             the LO fails to submit                        

                                             the required documents                     

                                             within 30 days from                          

                                             receipt of the Letter of                      

                                             Acceptance of the offered                 

                                             price, notifies DAR of                       

                                             such failure by the LO and                

                                             also issues to DAR the                      

                                             certification or proof of                     

                                             the opening of a trust                         


22              LBP -                  Prepares and executes                       CARP Form No. 12

                  LVO                   DOT together with LO                     

                  LBP-                   and transmits the same                      

                  HO                     to the ROD, including                       

                                             the owner's duplicate                        

                                             certificate of title,                              

                                             approved segregation                        

                                             plan, if partially covered.                   

23              ROD                   Registers DOT and                            Registered DOT

                                             issues Transfer Certificates                and TCT in the

                                             of Title in the name                               name of the RP

                                             of the Republic of the                        


24              ROD                   Forwards owner's dup-                     Owner's duplicate

                                             licate copy of title issued                    certificate of title/ RP

                                             in the name of RP to                         

                                             LBP-LVO/ LBP-HO.                      

25              LBP -                  Prepares payment release                  Claims Processing

                  LVO                   order for the payment                        and Payment Release

                  LBP-HO             to the LO of the value                        Form (LBP) State-

                                             of the compensation. In                      ment of Accounts

                                             case the land is encum-                     

                                             bered, pays the mortgage                  

                                             bank/creditor upon the                      

                                             LO's request, and the                        

                                             balance of the proceeds                    

                                             payable to the LO.                            

                                             D.2   Where LO Rejects                  

                                             the Land Valuation                         

26              DARPO              If the LO reject the                            CARP Form No. 14

                                             offered price or fails to                      

                                             reply within 30 days                          

                                             from receipt of the No-                     

                                             tice of Land Valuation                       

                                             and Acquisition, sends                      

                                             Memorandum to LBP                       

                                             to open a trust account                      

                                             in the name of the LO                       

27              DARPO              Request the DARAB/                       

                                             RARAD/PARAD to                         

                                             conduct administration                      

                                              proceedings pursuant to                   

                                             DARAB guidelines, as                      

                                             the case may be, furni-                      

                                             shing therein a copy of                      

                                             each of the LO's letter                       

                                             of rejection Notice of                        

                                             Land Valuation and                           

                                             Acquisition, and LBP's                      

                                             Memorandum of Valuation.               

28              LBP-                   Opens trust account in                       CARP Form No. 15

                  LVO                   the name of LO and                          

                                             send proof of the ope-                      

                                             ning of a trust account                       

                                             or certification to the                         

                                             DAR through the PARO,                  

                                             copy furnished the LO.                     

29              DARPO              Upon receipt of the proof                   CARP Form No. 16

                                             of the opening of a trust                      Approved segregation/

                                             account or certification                       subdivision plan

                                             by LBP, transmits the                        

                                             same to the ROD                      

                                             concerned, including the                           

                                             approved segregation/                       

                                             subdivision of subject                        

                                             property if partially covered.             

30              ROD                   Issues new TCT in the                       New TCT in the name

                                             name of RP and forwards                  of RP and owner's

                                             owner's duplicate certificate               duplicate of title in

                                             cate of title in the name                       the name of RP

                                             of RP to BLP-LVO which                

                                             furnishes the PARO a                

                                             certified xerox copy of the same.             

31              DARAB/             Simultaneously with Activity                   

                  RARAD/             Nos. 22 to 24 above,                 

                  PARAD/             the DARAB conducts                       

                                             summary administrative                     

                                             proceedings; renders                  

                                             decision and informs parties                     

                                             concerned of the same.                     

32              DARPO              Within fifteen (15) days                      CARP Form No. 11

                                             after receipt of the decision                     

                                             of the DARAB, requests                     

                                             the LBP to prepare                

                                             for the signature of the                       

                                             LO if he so accepts,                 

                                             otherwise, requests the LBP                     

                                             to adjust the trust account                 

                                             in accordance with the                      

                                             DARAB decision and                       

                                             accordingly informs the                     

                                             LO. In the event the LO                    

                                             signs the DOT, the LBP                    

                                             shall transmit a copy of                      

                                             the same to the ROD as                    

                                             additional support to the                    

                                             transfer of title in favor of                  

                                             the RP and follows Step                    

                                             25 under D.1.                                   

                                             E.      Land Distribution

                  DARPO              Forwards to DARMO                       Certified copy of TCT
                                             the certified copy of the                      in the name of RP
                                             TCT in the name of RP                     
                                             with the instruction to                        
                                             take over physical possession                   
                                             of the land proceed                  
                                             with the distribution of                       
                                             the same in favor of                   
                                             qualified ARBs.                                       


For monitoring and evaluation purposes, 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 and MIS. All landowners concerned shall be periodically advised on the status of their claims.   HEaCcD


In order to prevent delays in the processing of claim folders, all VOCFs/CACFs already forwarded to or pending in the DARRO shall continue to be processed under the old procedure. However, all VOCFs/CACFs still pending in the DARPO's and DARMOs concerned shall be governed by this Administrative Order.


All orders, circulars and other issuances inconsistent herewith are deemed repealed, amended and/or modified accordingly.


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.   cSTDIC

Quezon City, Metro Manila, March 18, 1993.





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

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