Restrictions on purchasing land under CLOA

A CLOA is a legal document issued by the Department of Agrarian Reform (DAR) to farmer-beneficiaries as proof of ownership of agricultural land awarded to them under the government’s Comprehensive Agrarian Reform Program (CARP).

Republic Act (RA) 6657, or the Comprehensive Agrarian Reform Law of 1988 (CARP Law), was enacted to allow landless farmers and farmworkers to own, directly or jointly, the lands they till or to receive a just share of the fruits thereof. To this end, the State redistributed the ownership of all agricultural lands to landless farmers, subject to the landowners’ retention limits and with due regard to their right to just compensation.

However, farmer-beneficiaries under the CARP are subject to certain limitations in terms of sale, transfer or disposal of the land awarded to them. Sections 26 and 27 of the CARP Law, strictly provide a 10-year holding period, the requirement of a prior DAR clearance or approval, and fully-settled amortization payments, before an awarded land may be validly sold to another person, to wit:

Section 26. Payment by Beneficiaries. — Lands awarded pursuant to this Act shall be paid for by the beneficiaries to the LBP in thirty (30) annual amortizations at six percent (6%) interest per annum.

The LBP shall have a lien by way of mortgage on the land awarded to the beneficiary; and this mortgage may be foreclosed by the LBP for non-payment of an aggregate of three (3) annual amortizations. The LBP shall advise the DAR of such proceedings and the latter shall subsequently award the forfeited landholdings to other qualified beneficiaries. A beneficiary whose land, as provided herein, has been foreclosed shall thereafter be permanently disqualified from becoming a beneficiary under this Act.

Section 27. Transferability of Awarded Lands. — Lands acquired by beneficiaries under this Act may not be sold, transferred or conveyed except through hereditary succession, or to the government, or the LBP, or to other qualified beneficiaries for a period of ten (10) years: provided, however, that the children or the spouse of the transferor shall have a right to repurchase the land from the government or LBP within a period of two (2) years. Due notice of the availability of the land shall be given by the LBP to the Barangay Agrarian Reform Committee (BARC) of the barangay where the land is situated. The Provincial Agrarian Reform Coordinating Committee (PARCCOM) as herein provided, shall, in turn, be given due notice thereof by the BARC.

If the land has not yet been fully paid by the beneficiary, the rights to the land may be transferred or conveyed, with prior approval of the DAR, to any heir of the beneficiary or to any other beneficiary who, as a condition for such transfer or conveyance, shall cultivate the land himself. Failing compliance herewith, the land shall be transferred to the LBP which shall give due notice of the availability of the land in the manner specified in the immediately preceding paragraph.

In the event of such transfer to the LBP, the latter shall compensate the beneficiary in one lump sum for the amounts the latter has already paid, together with the value of improvements he has made on the land.

Thus, while the law permits the sale of land under CLOA, it is necessary that the conveyance must comply with the conditions set by the DAR and the provisions of the CARP Law.

Source: Manila Times