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August 6, 1996






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.   CaSHAc


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.


A.        All landowners (LO) whose lands are subject for coverage under RA 6657 may voluntarily 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.   AaDSTH



Steps          Responsible                            Activity                            Forms/Documents

                     Agency/Unit                                                                    (Requirements)


A.     Identification and Documentation

For VOS only

1                   LO                         Files Letter Offer together            CARP Form No. 1

                     DARMO                with the basic ownership               (Letter Offer)

                                                   documents in any DAR                 Certified copy of

                                                   office.  The DAR office               OCT/TCT

                                                   which received the afore-             Certified copy of

                                                   said documents forwards              Tax Declaration

                                                   same to DAR Municipal               Copy of the approved

                                                   Office where the subject               survey plan of

                                                   property is located                        property

1.a                 DARMO                Receives and reviews                   Refer to List of

                                                   duly accomplished                        Documents

                                                   CARP Form No. 1                       Required Pursuant

                                                   with the attached                          to RA 6657 under

                                                   documents, gather                        Different Situations

                                                   documents required                      (Annex "A")

                                                   as maybe applicable to

                                                   a particular situation.

1.b                 DARMO                Acknowledges receipt

                                                   of documents, advises

                                                   LO on specific procedures

                                                   and to submit additional

                                                   documents, if any, to

                                                   include the surrender of

                                                   the owner's duplicate

                                                   certificate of title to LBP

                                                   as a requirement for

                                                   payment; prepares corres-

                                                   ponding claim folder

                                                   (CF) of LO

For CA only

1.                  DARMO                Gathers all appropriate                  Same as above

                                                   documents similar to

                                                   those enumerated under

                                                   VOS and prepares corres-

                                                   ponding CF of LO.

For EO 407 covered lands

1                   LO                         Executes DOT in favor                 Owner's duplicate

                                                   of RP and surrenders to                copy of title Tax

                                                   DAR all appropriate                     Declaration and

                                                   documents.                                  other necessary

                                                                                                      documents to effect

                                                                                                      the transfer of


1.a                 DARPO                 Forwards duly executed                Duly executed DOT

                                                   DOT and appropriate                    Approved subdivision

                                                   documents to ROD for                 or segregation plan

                                                   registration of same and                (ASP) with technical

                                                   requests for the issuance               descriptions

                                                   of title in the name of RP.

1.b                 ROD                      Registers DOT and issues

                                                   TCT in the name of RP and

                                                   forwards owner's duplicate

                                                   certificate of title to PARO.

1.c                 DARPO                 Proceeds with the

                                                   distribution of land.

For VOS, CA and EO 407

2                   DARMO                Provides LBP thru PARO            The list should

                                                   list of landholdings                        contain the ff:

                                                   together with the certified             - Name of LO

                                                   copy of the title, tax                      - Title/TD No.

                                                   declaration and approved              - Area

                                                   survey plan or sketch                    - Location

                                                   plan of the property for

                                                   scheduling of the ocular


3                   DARMO                Sends Notice to BARC,                CARP Form No. 2

                                                   DENR, DA, LBP and                   (Notice to Conduct

                                                   prospective ARBs on                    Field Investigation)

                                                   the schedule of the field

                                                   investigation at least                      CARP Form No. 2.a

                                                   two weeks in advance.                 (Invitation Letter to

                                                   Invites the LO to join                    LO for the Field

                                                   the field investigation,                    Investigation)

                                                   to select his retention

                                                   area and to submit his

                                                   Statement of Production

                                                   and Income. If LO cannot be

                                                   contacted, notice shall be

                                                   published in a newspaper

                                                   of national circulation.

4                   DARMO                Conducts joint field

                                                   investigation of the   SAHIDc

                                                   property with LBP,

                                                   DENR, DA, LO, BARC

                                                   and prospective ARBs.

5                   DARMO                Prepares FIR and Land    CARP Form No. 3

                                                   Use Map jointly with                     (Field Investigation

                                                   LBP and BARC.                          Report)

6                   DARMO                Screens/selects qualified               CARP Form No. 4

                                                   ARBs and causes the                   (Application to

                                                   signing of the APFUs.                  Purchase and

                                                   Farmer's Under-


7                   DARMO                Sends LO the Notice of                CARP Form No. 5

                                                   Coverage together with                 (Notice of Coverage)

                                                   a copy of the FIR by

                                                   personal delivery with

                                                   proof of service or by

                                                   registered mail with

                                                   return card.

8                   DARMO                Posts a copy of the                       CARP Form No. 6

                                                   Notice of Coverage for                 (Certification of

                                                   seven (7) working days                 Posting Compliance)

                                                   in the bulletin board of

                                                   the barangay and muni-

                                                   cipal halls where the

                                                   property is located and

                                                   issues Certification of

                                                   Posting Compliance.

9                   DARMO                Forwards claim folder                    CARP Form No. 7

                                                   to PARO.                                    (CF Transmittal


B.   Review and Completion of


10    DARPO                               Receives claim folder

      and forwards to the DAR-

      LBP Pre-Processing Unit

      (PPU) for review/evaluation

      of documents.  Gathers

      lacking documents, if any.

C.   Land Survey

11                  DARPO                 Expedites survey                          Approved subdivision

                     activities and ensures                                                  or segregation plan

                     that segregation/sub-                                                   (ASP) with survey

                     division survey returns                                                technical descriptions

                     are completed and

                     approved by the DENR-

                     LMS pursuant to existing

                     guidelines.   AIHDcC

12                  DAR-LBP-PPU     Forwards CF to LBP-                   CARP Form No. 8

                                                   LVLCO together with                  (Memorandum

                                                   the ASP, if applicable.                  Request to Value the                 Land)

D.  Land Valuation and


13                  LBP-LVLCO         Receives and evaluates

                                                   the CF for completeness,

                                                   consistency and document

                                                   sufficiency.  Gathers

                                                   additional valuation


14                  LBP-LVLCO         Determines land                           Claims Valuation

                                                   valuation based on                        and Processing

                                                   valuation inputs                             Form (CVPF)

                                                   Note:  CFs where the

                                                   land valuation amounts

                                                   to more than P3 million

                                                   shall be forwarded to


15                  LBP-LVLCO         Prepares and send                        CARP Form No. 9

                                                   Memo of Valuation,                      (Memorandum of

                                                   Claim Folder Profile                      Valuation and Claim

                                                   and Valuation Summary                Folder Profile and

                                                   (MOV-CFPVS) to PARO.           Valuation Summary)

16                  DARPO                 Receives LBP's MOV-

                                                   CFPVS and ascertains the

                                                   completeness of the data

                                                   and information therein.

17                  DARPO                 Sends Notice of Land                   CARP Form No. 10

                                                   Valuation and Acquisition              (Notice of Land

                                                   to LO by personal                         Valuation and

                                                   delivery with proof of                    Acquisition)

                                                   service or by registered

                                                   mail with return card,

                                                   attaching copy of MOV-

                                                   CFPVS and inviting LO's

                                                   attention to the submission

                                                   of documents required for

                                                   payment of claim.

18                  DARPO                 Posts  a copy of the Notice           CARP Form No.11

                     of Land Valuation and                                                (Certification of

                     Acquisition (NLVA) for at                                          Posting Compliance)

                     least seven (7) working

                     days on the bulletin board

                     of the provincial capitol,

                     municipal and barangay

                     halls where the property

                     is located and issues a

                     Certification of Posting


19                  LO                         Replies to Notice of Land             CARP Form No. 10.a

                                                   Valuation and Acquisition              (LO's Reply to

                                                   and submits documents                 NLVA)

                                                   required for payment of

                                                   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 Valuation

20                  DARPO                 Upon receipt of LO's                    CARP Form No. 12

                                                   Letter of Acceptance,                   (Request to Pay)

                                                   sends Memorandum to

                                                   LBP to prepare the Deed

                                                   of Transfer and to Pay

                                                   the LO.

21                  LBP-LVLCO         Prepares DOT for LO                  CARP Form No. 13

                     LBP-HO                to execute and deposits                 (Deed of Transfer)

                                                   the compensation

                                                   proceeds in the name of

                                                   LO in cash and in bonds.

                                                   The entire deposit may be

                                                   withdrawn by the LO; how-

                                                   ever, the actual release

                                                   of same shall only be

                                                   effected upon LO's

                                                   submission of all docu-

                                                   mentary requirements.

22                  LO                         Executes DOT and                       CARP Form No. 13

                                                   submits payment                           (Deed of Transfer)

                                                   requirements to LBP

                                                   within seven (7) working


                                                   Should the LO fail to                     CARP Form No. 16

                                                   submit the required                       (Notice of LO's Non-

                                                   documents within seven                Compliance with

                                                   (7) working days from                  Requirements)

                                                   LBP receipt of the DAR

                                                   Request to Pay, notifies                CARP Form No. 17

                                                   DAR of such failure by                 (Certificate of

                                                   LO and also issues to                    Payment)   caTIDE

                                                   DAR the Certification of


                                                   Thereafter, the DAR shall             CARP Form No. 18

                                                   request ROD to transfer               (Request to Issue

                                                   the Certificate of Title                   TCT in the Name of

                                                   covering subject property              RP)

                                                   in favor of the RP.

23                  LBP-LVLCO         Forwards DOT together               CARP Form No. 13

                     LBP-HO                with the owner's duplicate             (Deed of Transfer)

                                                   certificate of title and ASP            Certified copy of

                                                   (if applicable) to ROD for             ASP and its tech-

                                                   registration.                                  nical description

                                                   approved by DENR,

                                                   if property is partially

                                                   covered by CARP

24                  ROD                      Registers DOT and issues

                                                   TCT in the name of RP,

                                                   then forwards owner's

                                                   duplicate certificate of

                                                   title to LBP.

25                  LBP-LVLCO         Prepares Payment                        LBP Payment

                                                   Release Form upon LO's              Release Form

                                                   compliance with all the

                                                   requirements for payment.

                                                   In case the land is encum-

                                                   bered, pays the mortgagee-

                                                   bank/creditor upon LO's

                                                   request and pays the

                                                   balance of the proceeds

                                                   to the LO.

26                  LBP-LVLCO         Surrenders the owner's                Owner's duplicate

                     LBP-HO                duplicate certificate of                 certificate of title (RP)

                                                   title (RP) to PARO which

                                                   will in turn transmit said

                                                   copy to ROD to enable

                                                   CLOA registration.

D.2 Where LO rejects the

Land Valuation

20                  DARPO                 If the LO rejects the                     CARP Form No. 10.a

                                                   offered price or fails to                 (LO's Reply to

                                                   reply within thirty (30)                   NLVA)

                                                   days from receipt of

                                                   the Notice of Land                       CARP Form No. 15

                                                   Valuation and Acquisi-                  (Request to Deposit)

                                                   tion forwards to LBP the

                                                   Request to Deposit the

                                                   compensation proceeds

                                                   in cash and in bonds in

                                                   the name of the LO.

21                  DARPO                 Requests the DARAB/                  CARP Form No. 14

                                                   RARAD/PARAD to                    (Advice to DARAB/

                                                   conduct administrative                  RARAD/PARAD)

                                                   proceedings pursuant to

                                                   DARAB guidelines, as the

                                                   case maybe, furnishing

                                                   therein a copy each of the

                                                   LO's Letter of Rejection,

                                                   Notice of Land Valuation

                                                   and Acquisition and LBP's

                                                   Memorandum of Valuation.

22                  LBP-LVO              Deposits the compen-                   CARP Form No. 17

                     LBP-HO                sation proceeds in the                   (Certification of

                                                   name of LO and issues                 Deposit)

                                                   Certification of Deposit

                                                   to  DAR through the

                                                   PARO, copy furnished

                                                   the LO.

                                                   The entire deposit may                  CARP Form No. 17.a

                                                   be withdrawn by the LO;              (Confirmation of

                                                   however, actual release                Coverage and

                                                   of same shall be subject                Transfer For

                                                   to LO's submission of                   Claims of Individual

                                                   all  requirements for                      LOs - Still pending

                                                   payment and execution                 with 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)   TDCcAE

23                  DARPO                 Upon receipt of the                       CARP Form No. 18

                                                   Certification of Deposit                 (Request to Issue

                                                   from LBP, transmits                     TCT in the Name of

                                                   the same to the Register               RP)

                                                   of Deeds concerned,

                                                   including the approved


                                                   plan of subject property,

                                                   if partially covered and

                                                   simultaneously requests

                                                   the ROD to issue TCT in

                                                   the name of RP.

24                  ROD                      Issues new TCT in the                  New TCT in the

                                                   name of RP and forwards             name of RP and

                                                   owner's duplicate certi-                 owner's duplicate

                                                   ficate of title in the name               copy of title in the

                                                   of RP to LBP-LVO which            name of RP

                                                   furnishes the PARO a

                                                   certified xerox copy of the


25                  DARAB/                Simultaneously with Activity

                     RARAD/                Nos. 22-24 above, the DARAB/

                     PARAD                 RARAD/PARAD conducts

                                                   summary administrative

                                                   proceedings; renders decision

                                                   and informs parties concerned

                                                   of the same.

26                  DARPO                 Upon receipt of the                       CARP Form No. 17.c

                                                   Certificate of Finality                    (Confirmation of

                                                   of the DARAB Order,                  Coverage and

                                                   requests LBP to pay                     Transfer for Claims

                                                   the LO in accordance                   of Individual LOs -

                                                   with the DARAB                         Already decided

                                                   decision; requests LBP                 by DARAB)

                                                   to prepare Confirmation

                                                   of Coverage and                           CARP Form No. 17.d

                                                   Transfer for LO to                       (Confirmation of

                                                   accomplish.  Thereafter,               Coverage and

                                                   LBP follows Activity                    Transfer for Claims

                                                   Nos. 25-26 under D.1.                  of Corporate LOs -

                                                   In case the LO still                       Already decided

                                                   rejects DARAB decision,              by DARAB)

                                                   he may go to the Special

                                                   Agrarian Court (SAC) for

                                                   the final determination of

                                                   just compensation.

E.   Land Distribution

27                  DARPO                 Forwards to DARMO                  Certified copy of

                                                   the certified copy of the                TCT in the name

                                                   TCT in the name of RP                of RP

                                                   with the instruction to

                                                   take over physical

                                                   possession of the land

                                                   and proceed with the

                                                   distribution of the same

                                                   in favor of qualified ARBs.


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.   IDCScA


All trust accounts issued pursuant to Administrative Order No. 1, S. 1993, covering landholdings not yet transferred in the name of the Republic of the Philippines 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.


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.   ESITcH

Adopted:  06 Aug. 1996





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

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