Department of Agrarian Reform (DAR) is the Philippine government agency responsible for implementing the Comprehensive Agrarian Reform Program (CARP), overseeing land distribution to qualified beneficiaries, and regulating transfers of agricultural land. For real estate transactions involving agricultural properties, DAR clearance is required before the Registry of Deeds can register the transfer.

Definition

The DAR serves as the lead agency for agrarian reform in the Philippines, ensuring equitable land distribution, ownership security, and agricultural productivity for farmers. Under Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988), the DAR administers the acquisition and distribution of agricultural lands to landless farmers and farmworkers known as Agrarian Reform Beneficiaries (ARBs).

For real estate brokers and developers, DAR involvement is critical when transacting agricultural land or properties with agricultural history.

Core Mandate

The DAR operates under three major programs:

Land Tenure Security Program (LTSP): Distribution of agricultural lands to qualified ARBs through Certificates of Land Ownership Award (CLOA) and Emancipation Patents (EP)
Agrarian Reform Beneficiaries Development Sustainability Program (ARBDSP): Support services for ARBs including farm productivity, credit access, and organizational capacity building
Agrarian Justice Delivery Program (AJDP): Resolution of agrarian disputes and legal assistance to beneficiaries

DAR Documents for Real Estate Transactions

When transferring agricultural land, you need one of three DAR documents:

Document	Purpose	When Required
DAR Clearance	Confirms transfer does not violate CARP rules	Sale/transfer of agricultural land
DAR Exemption/Non-Coverage	Certifies land is not agricultural or outside CARP	Non-agricultural land (residential/commercial/industrial)
Land Use Conversion Order	Approves change from agricultural to non-agricultural use	Converting agricultural land for development

Transactions Requiring DAR Clearance

DAR involvement is required for:

Sale, donation, barter, exchange of agricultural land
Partition or consolidation involving agricultural parcels
Mortgage and foreclosure of agricultural properties
Transfer of CLOA/EP lands (subject to stricter rules)
Corporate acquisitions of agricultural land

DAR Clearance Process

File application with DAR Provincial Office (DARPO) where land is located
Pay applicable fees (filing, inspection, certification)
Submit documentary requirements (title, tax declaration, affidavits, lot plan)
Field verification by DAR to check tenancy, ARB rights, and actual use
Evaluation of retention limits and aggregation tests
Issuance of DAR Clearance (with conditions) or Denial

Documentary Requirements

Property Documents:

Certified true copy of TCT or OCT
Latest Tax Declaration and Real Property Tax clearance
Lot plan with metes and bounds
Assessor's certificate on actual use/classification
Zoning certification from LGU

Ownership/Status Documents:

Affidavit of aggregate landholdings (seller and buyer)
Sworn tenancy/occupancy disclosure
Barangay certifications (no agrarian dispute)
Certification of no pending agrarian case

Transaction Documents:

Draft or executed deed (sale, donation, etc.)
Valid IDs of parties
SPA/Board Resolution for representatives/corporations

CLOA/EP Land Restrictions

Lands awarded to ARBs via CLOA or EP have special restrictions:

Restriction	Details
Prohibited Period	Generally 10 years from award/registration
Transfer Ban	No sale during prohibited period (except hereditary succession)
Mortgage Limitation	Only with Land Bank of the Philippines (LBP)
Post-Prohibition Transfer	Requires DAR approval; buyer often must be qualified beneficiary
Collective CLOAs	Additional steps for individualization/partition

What is "Agricultural Land"?

Agricultural land includes land devoted to:

Farming and crop production
Livestock raising
Pastures and grazing
Aquaculture and fishponds

Not agricultural: Land classified as residential, commercial, or industrial by:

Law or presidential proclamation
Valid LGU reclassification before June 15, 1988 (CARP effectivity)
Approved DAR conversion order

DAR Evaluation Tests

DAR evaluates transfers based on:

Coverage/Land Use: Is the parcel agricultural?
Tenancy/ARB Rights: Are there tenants or ARBs whose rights would be impaired?
Retention Limits: Transferor cannot reduce holdings to evade CARP (typically 5 hectares for individuals)
Aggregation Test: Transferee's total agricultural holdings reviewed
Encumbrances: Existing CARP notices, CLOAs, or pending cases

Relevance to Real Estate Transactions

For real estate brokers handling agricultural or formerly agricultural properties:

Due Diligence Steps:

Check if land is classified as agricultural in Tax Declaration
Verify zoning classification with LGU
Investigate presence of tenants or actual tillers
Review title annotations for CARP coverage or CLOA restrictions
Confirm no pending agrarian cases

Common Issues:

Assuming land is non-agricultural based only on Tax Declaration
Undisclosed tenants discovered during field verification
Missing aggregate landholding affidavits
Post-1988 LGU reclassification without DAR conversion
CLOA restrictions overlooked in secondary market transactions

Transaction Flow:

Obtain DAR Clearance/Exemption/Conversion
Secure BIR Certificate Authorizing Registration (CAR)
Pay transfer taxes and documentary stamp tax
Present complete documents to Registry of Deeds
New TCT issued with relevant annotations

Real estate platforms with due diligence tracking and document management features help brokers manage DAR clearance requirements alongside other transaction documentation.

Department of Agrarian Reform