Comprehensive Rules on Land Use Conversion

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Rules on
Exemption of Lands
from CARP Coverage
Atty. JIM G. COLETO
DARAB Board Member III and
concurrent OIC-Assistant Secretary
for Legal Affairs Office, DAR

Agrarian Reform
Online Transcript
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Rules on Exemption of Lands from CARP Coverage
under Section 3 (c) of R.A. 6657 & Department of Justice (DOJ)
Opinion No. 44, Series of 1990 (Effective 9 February 2003)

DAR A.O. No. 4, Series of 2003 as amended by DAR A.O.

No. 3, Series of 2017 and A.O. No. 6, Series of 2019

00:20 – Kapag prior to June 15, 1988, iyong approval ng law, ng

reclassification ordinance, you have to apply for exemption
clearance. But take note, this exemption clearance is governed by
A.O. 4 s.2003 as amended by A.O. 3 s.2017 on rules on ALI and of
A.O. 6 s.2019 on LUCC. Kasi iyong exemption of more than 5
hectares is under LUCC. So, exemption by reason of definition of
agriland which is devoted to agricultural activity and not classified
as mineral, forest, residential, commercial or industrial land.

01:15 – Section 3 (c) of R.A. 6657 is the basis why prospective iyong
conversion sa reclassification prior to June 15 1988.
The authority to approve/disapprove is exclusive in DAR DOJ
Opinion No. 44 (Drilon Opinion) which states that “the authority of
the DAR to approve or disapprove conversions of agricultural lands
to non-agricultural uses applies only to conversions made on or
after June 15, 1988, the date of the effectivity of R.A. 6657”.

02:04 – DOJ opinion was actually enshrined in the case of Natalia

realty. Kaya iyong DOJ opinion nagiging law in effect. The
subject matter of the Lungsod Silangan in Natalia Realty, the
Lungsod Silangan proclamation in Rizal became the focal point.

04:12 - The PARC is vested with quasi-Legislative authority to

promulgate rules and regulations for the purpose of carrying out
the objectives of the Comprehensive Agrarian Reform Program.

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Checklist of Documentary Requirements (Sec. 2)

1. Certified copy of the Official Receipt (O.R.) of filing fee;
2. Certified copy of the O.R. for inspection fee;
3. Sworn application for CARP Exemption or Exclusion, duly
accomplished, and subscribed and sworn to before a
notary public of any person authorized to administer
others;
03:00 – Sa department, pwede iyong attorney V, pwede din iyong
PARPO to administer oaths per on A.O. for this purpose.
4. Certified True Copy (or the original copy) of the Original
Certificate of Title (OCT or TCT)
03:09 – Hindi pa electronic. Hindi pa na-amend iyong A.O. 4 s.2003
ng A.O. 1 s.2019, kasi strictly on land use conversion only. But if you
submit the electronic copy, iyon na iyon, automatically. Ang
PHILARES, program ng LRA, hindi na raw nagrerelease ng OCT,
Electronic copy na ang binibigay.
5. Certification from the Housing and Land Use Regulatory
Board (HLURB) Regional Officer on the actual zoning
03:42 – Note, that the HLURB is under DHSUD (Department on
Human Settlements and Urban Development).
6. Certification of the National Irrigation Administration
(NIA) that the area is not irrigated nor scheduled for
irrigation rehabilitation o irrigable with form funding
commitment
04:18 – Sa A.O. 4, hindi na-change iyong nature niya. Not irrigated
nor scheduled nor irrigable. But because of Section 65 on R.A. 6657
as amended by R.A. 9700, automatic na irrigated and irrigable.
Then NIA is mandated to submit to DAR the list of areas which are
irrigated and irrigable in the Philippines.

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Section 22. Section 65 of Republic Act No. 6657, as amended, is hereby

further amended to read as follows:
"SEC. 65. Conversion of Lands. - After the lapse of five (5) years from its
award, when the land ceases to be economically feasible and sound for
agricultural purposes, or the locality has become urbanized and the land will
have a greater economic value for residential, commercial or industrial
purposes, the DAR, upon application of the beneficiary or the landowner
with respect only to his/her retained area which is tenanted, with due
notice to the affected parties, and subject to existing laws, may authorize
the reclassification or conversion of the land and its disposition: Provided,
That if the applicant is a beneficiary under agrarian laws and the land sought
to be converted is the land awarded to him/her or any portion thereof, the
applicant, after the conversion is granted, shall invest at least ten percent
(10%) of the proceeds coming from the conversion in government
securities: Provided, further, That the applicant upon conversion shall fully
pay the price of the land: Provided, furthermore, That irrigated and irrigable
lands, shall not be subject to conversion: Provided, finally, That the National
Irrigation Administration shall submit a consolidated data on the location
nationwide of all irrigable lands within one (1)year from the effectivity of
this Act.
"Failure to implement the conversion plan within five (5) years from the
approval of such conversion plan or any violation of the conditions of the
conversion order due to the fault of the applicant shall cause the land to
automatically be covered by CARP."

04:49 – Dito rin papasok iyong DOJ Opinion 43 Series of 2011, kasi
iyong DAR mismo ang nag sought ng opinion na iyon. Iyong
applicability ng amendment ng 9700 to 6657.
7. Certification of the Municipal Agrarian Reform Program
Officer (MARPO)
05:08 – Busy talaga si MARPO, whether sa conversion or sa
exemption. For those of you na aspiring to be MARPOs. Later on,

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kasi next in line kayo sa field/provincial office, iyan ang magiging

trabaho niyo. Assuming within your jurisdiction, ang applyan for
exemption or land use conversion.
8. Photographs, size 5R (five {5} inches by seven [7 inches]
9. Proof of receipt of payment of disturbance
compensation or a valid agreement to pay or waive
payment of disturbance compensation
05:53 – Very important, because of security of tenure of our tenants
under Section 11 of 6657 and R.A. 3844.
06:13 – So reclassified, pero prior to that, iyong lupa ay cultivated
by the tenants/lessees. Therefore, may leasehold contracts.
Despite that, ni-reclassify ng LGU either by Local Autonomy Act of
1959 or R.A. 7160. Because of that, LGUs have the authority to
reclassify.
10. Affidavit/Undertaking in a single document of the
applicant (on payment of disturbance compensation)
11. Lot plan
12. Vicinity or directional map

Proof for Classification:

 Certifications issued by HLURB on the actual zoning
 For lands classified as mineral: certification issued by
DENR Mines and Geosciences Bureau
07:33 – What if the land being applied is a mineral land, pwede ba
iyon under exemption? Yes, under A.O. 4 s.2003. You only need to
submit sa Geosciences Bureau Artification kung mineral land.

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 For lands classified as forest or timber land certification

issued by the DENR Forestry Sector or the proper DENR
office attesting that the subject land is classified within
the forest zone.

Jurisdiction
08:47 – I would like to emphasize na iyong A.O. 4 s.2003 is related to
A.O. 7 s.2011, sa issuance ng notice of coverage which serves as
the guiding book sa mga MARPOs/PARPOs sa operations on LAD
matters.
Click to download: A.O. 7, series of 2011

Approving Authorities
Regional Director for 5 hectares and below
LUCC, if the land has area larger than 5 hectares. The LUCC, when
the applicant owns (or represents the owner of) two (2) or more
parcels of land within the same barangay or within two (2) or more
barangays that are adjacent to each other and the sum of the
areas of said parcels of land exceeds five (5) hectares.

Who may file an Application for Exclusion?

09:47 – Kasi iyong A.O. mismo ginamit iyong word na “exclusion”,
but note that this is actually an exemption. Pero inexclude on the
assumption na na-isyuhan ng notice of overage.
 Any landowner or his duly authorized representative
 Heir/s of deceased landowner, as successors-in-interest
10:13 – Ito iyong sitwasyon na iyong original landowner namatay
na. So iyong mga heir na ang nag-aapply na “look reclassified na

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iyan prior to June 15, 1988, so therefore it should not have been
CARP-covered”.

Any persons may file a written protest against the application

within thirty (30) days from posting of the requisite billboard(s) or
within fifteen (15) days from the conduct of ocular inspection
whichever is later.

Timelines:
1. Within a non-extendible period of thirty (30) days from his/
her/its/their receipt of the Notice of Coverage (NOC), the
landowner may file a Manifestation for Exclusion from CARP
coverage before the PARPO.
2. The Application/Petition for Exclusion from CARP coverage
may be filed together with the above-mentioned
Manifestation. If not filed jointly, the landowner ca file it,
together with the documents required by the rules on
exemption or exclusion, within sixty (60) days from receipt of
the NOC.
3. If there are CLOAs/EPs registered over the land, consider the
indefeasibility principle.

11:52 – Note also, na-isyuhan mo na, nag-progress, na-isyuhan ng

title/CLOA/EP, so pwedeng defense mo iyong indefeasibility
principle under Section 24 of 6657, as amended. Na after 1 year
from registration under the torrens system, remember, rights and
responsibilities for the ARBs shall commence.

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SECTION 24 of R.A. 6657.

Award to Beneficiaries. – The rights and responsibilities of the beneficiary
shall commence from the time the DAR makes an award of the land to him,
which award shall be completed within one hundred eighty (180) days from
the time the DAR takes actual possession of the land. Ownership of the
beneficiary shall be evidenced by a Certificate of Land Ownership Award,
which shall contain the restrictions and conditions provided for in this Act,
and shall be recorded in the Register of Deeds concerned and annotated on
the Certificate of Title.

12:29 – Because of the indefeasibility principle, kung below 5 ang

na-isyuhan ng CLOA, i-deny iyong application because 1 year nag
set-in na, so may prescription. Imprescriptible na kasi iyong CLOA.

Elements of a DOJ 44 Case:

 The land involved was reclassified for non-agricultural use;

 The reclassification was done prior to 15 June, 1988.

13:32 – Please note iyong resolution, iyong sinasabing spot zoning,

sabi ng HLURB, is valid. They call it variance. Hindi spot zoning. The
proper term is variance. Allowed under the local government code
and HLURB circulars, iyong mga LGUs to enact zoning
ordinances

Denying and/or Approving the Application for

Exemption Clearance
The subject landholding is classified as within the agricultural zone

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14:20 – Iyong total na ni-reclassify, mayroon pa ring portion na still

agricultural land. So, it turns out na agricultural zone pa rin siya.
Although ni reclassify iyong buo pero may portion that remains
agricultural out of the reclassified land, so you have to deny the
application. So, it’s important to plot the map, kung ano iyong
total na ni-reclassify.
 The subject property has been covered by Operation
Land Transfer (OLT) under P.D. No. 27.
15:13 – Because OLT, nauna iyan 1972. So you have to check kung
sino ang nauna between the two. However, kung na reclassify siya
pero hindi pa na-isyuhan ng CLT or EP, as stated in the case of
Deleste, na-exempt siya even if may EP

Appeals (as amended by A.O. No. 3, Series of

2017)
a. When to appeal
Within fifteen (15) days from receipt of the adverse decision
pursuant to Section 51 of R.A. No. 6657.

SECTION 51 of R.A. 6657. Finality of Determination. – Any case or

controversy before it shall be decided within thirty (30) days after it is
submitted for resolution. Only one (1) motion for reconsideration shall be
allowed. Any order, ruling or decision shall be final after the lapse of
fifteen (15) days from receipt of a copy thereof.

b. Where to appeal
 Appeals from the decision of the Regional Director shall
be made by filing in the same regional office which
issued the adverse decision, a notice of appeal with
proof of payment of the requisite appeal fee

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 Non perfection of the appeal within the reglementary

period merits dismissal of the appeal.
16:27 – Only those decided applications based on merits are
supposed to be appealable. Kapag interlocutory order, that’s non-
appealable.
c. Grounds
No appeal shall be given due course unless the decision of
the Regional Director is final, disposing of the case on the
merits, and only on the following grounds:
 Serious errors in the findings of fact or conclusion of law
which may cause grave and irreparable damage or
injury to the appellant; or
 Coercion, fraud, or clear graft and corruption in the
Issuance of a decision

Applicable principles, laws, rules, policies and

precedents:
1. Laws
a. Section 3 (C) of R.A. No. 6657
“Agricultural Land refers to land devoted to agricultural
activity as defined in this Act and not classified as mineral,
forest, residential, commercial or industrial land.”

17:38 – If the land is still devoted to Rice land or corn land, and
then ni-reclassify, pwede siya for exemption despite na it’s still
devoted to an agricultural activity kasi ni-reclassify na siya ng LGU.

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b. Section 4 of R.A. No. 6657

“The Comprehensive Agrarian Reform Law of 1989 shall
cover, regardless of tenurial arrangement and commodity
produced, all public and private agricultural lands, as
provided in Proclamation No. 131 and Executive Order No.
229, including other lands of the public domain suitable for
agriculture.”

18:02 – As defined under Sec 4, ano iyong mga alienable and

disposable agricultural lands, which is subject for application of
exemption clearance. Kung may reclassification or presidential
proclamation saying na reclassified prior to June 15. Kasi there
are proclamations saying that the land will be used for other
purposes but not agricultural. So, mag-fall pa rin siya for
exemption. Iyon kasi ang result ng Natalia Realty case na if
there’s a presidential proclamation saying that it’s for tourism
purposes or housing sites, as exemplified in the Lungsod Silangan
proclamation in Rizal, it had the effect of conversion. Kung
converted na prior to June 15, even if the land is still rice land,
corn land, or coconut land. Sorry, but the situation is because of
the Drilon and Natalia Realty case, valid siya for exemption

2. Rules
a. DAR A.O. No. 7, Series of 2011, Revised Rules and
Procedures Governing the Acquisition and Distribution
of Private Agricultural Lands Under Republic Act (R.A.)
No. 6657, as Amended (Effective 15 October 2011)
19:30 – Iyong sa issuance ng NOC, kaya ichecheck niyo within 30
days tapos may protest si landowner within 30 days from the
NOC. For those of you assigned in legal, kailangan i-check niyo
kung may protest coverage kasi merong cancellation later on.

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So i-check kung na-comply ba iyon within 30 days from receipt of

the NOC or 60 days kung may addition, kasi mag-susubmit ng
additional documents
b. DAR A.O. No. 4, series of 2003, Rules on Exemption of
Lands from CARP Coverage under Section 3 (C) of
Republic Act No. 6657 and Department of Justice (DOJ)
Opinion No. 44, Series of 1990, as amended by DAR A.O.
No. 3, Series of 2017 (Effective 9 February 2003)
c. DAR A.O. No. 6, series of 2011, as amended by A.O. Nos.
6, 7 (2014) and 4 (Series of 2015)
20:15 – Iyong A.O. 6 s.2011 has application on exemption which is
already repealed by A.O. 2 s.2018 which I still include here baka
meron pang mga binalik sa inyo na for cancellation na
involving exemption of lands.
d. DAR A.O. No. 6, Series of 1994, Guidelines for the
Issuance of Exemption Clearances Based on Section 3
(C) of R.A. 6657 and the Department of Justice (DOJ)
Opinion No. 44, Series of 1990 (Effective 23 June 1994)
20:45 – Eto iyong prior to A.O. 4 s.2003, eto iyong mga nag-come
out from the Supreme Court, iyong mga prior na umabot sa
Supreme Court decided under A.O. 6 s.1994 which is actually hindi
naman kinopya lahat pero majority ng provisions ng A.O. 6 nasa
A.O. 4 s.2003
e. DOJ Opinion No. 44, Series of 1990. “The authority of the
DAR to approve or disapprove conversions of
agricultural lands to non-agricultural uses applies only to
conversions made on or after June 15 1988, the date of
effectivity of R.A. No. 6657.”

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21:19 – As I said iyong DOJ 44 na naging case law or stare decisis

because of the Natalia realty case
f. DOJ Opinion No. 43 Series of 2011. Succinctly, the De
Lima Opinion states that “irrigated and irrigable prime
agricultural lands cannot be the subject of an
application for exemption from the coverage of the
CARP”.
Applies even to “farmlands that are classified as
commercial, industrial or residential before June 15, 1988
when CARP was officially launched.” This is based on
R.A. 9700, where the legislative intent is to ban any
conversion of such agricultural lands (irrigated and
irrigable lands).
21:29 – And then DOJ Opinion No. 43 regarding irrigated and
irrigable lands na it applies as well to exempted or reclassified
lands because that is the legislative intent

3. Precedents
a. Heirs of Augusto Salas, Jr. vs Mariano Cabungcal, et. al.,
(GR No. 191545, 29 March 2017)
The SC held that the reclassification of a huge parcel of
land (148 has.) into a farm lot subdivision prior to June 15
1988 did not exclude the property from the definition of
agricultural land and hence was still covered by CARP.
So the issuance of the CLOAs to various ARBs was also
upheld
21:54 – Salas famous dito kasi nagkaroon ng CLOA on a farmlot
subdivision na granted with conversion pero nagfile ng protest kasi
bakit na-isyuhan ng CLOA pero upon reaching the Supreme

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Court, sabi ng SC valid iyong issuance ng CLOA kasi a farmlot

subdivision is still agricultural in nature.

b. Heirs of Luis Luna vs Ruben Afable, et. al. (GR No.

188299, 23 January 2013
In contrast to the exemption order issued by Sec.
Pagdanganan, the resolution and order, respectively,
of OIC Secretaries Ponce and Pangandaman – which
the CA cited with approval – relied mainly on
certifications declaring that the property is irrigated or
has a slope of below 18% and/or an ocular inspection
report stating that the property is generally covered
with rice and that the surrounding areas are still
agricultural and therefore, covered by the CARL. These
matters, however, no longer bear any significance in
the light of the certifications of the Deputized Zoning
Administrator and the HUDCC testifying to the
non-agricultural nature of the landholding in question.
22:43 – Ito iyong reclassified in Calapan City, sa DAR kasi irrigated
and at the same time iyong zoning ordinance, hindi klaro iyong
map. At the same time, hindi HLURB ang nag-issue but the HUDCC.
Pagdating sa SC ni-reverse ang DAR at CA on the ground na
exempt na iyong because Calapan City has a zoning ordinance
pursuant to Local Autonomy Act of 1959. Regardless, wala pa
naman daw human settlement regulatory act. HLURB at that time
besides HUDCC, sa umbrella org, pinaka head pala noon ay
HUDCC dati. So, kinonsider ng SC na valid.
c. Heirs of Dr. Jose Deleste vs. Land Bank of the Philippines
(LBP), (G.R. No. 169913, June 2011)
The local government has the power to reclassify
agricultural into non-agricultural lands – when HLURB
approval is not necessary in order for the reclassification
to be valid
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24:01 – Eto iyong sinabi kong covered ng PD 27, na-isyuhan ng CLT

first in 1977 and then because of compliance sa two-step process,
amortization + payment. Nag-comply, na-isyuhan ng EP.
However, the landowner heir, iyong anak sa labas. Hinabol niya,
sa PARAD nag-file ng application. Because at that time sa DARAB
rules pwede ang cancellation. So, grinant sa DARAB central. Sa
CA sustained. Pero sa SC reversed saying na iyong land was
reclassified as of 1974 pursuant to the local autonomy act. So
when the CLTs and EPs were issued afterwards, void na siya
because nauna ang reclassification. Nag-file ng MR ang DAR
Landbank na this is 1972 iyong pursuant to PD27. But still sabi ng
SC though kasi na reclassify siya as of 1974 and at the time when
the reclassification happened, nag-issue kayo ng CLT 1977 and
then EPs 1980s. Therefore nauna na iyong reclassification and
walang notice of coverage.
d. Chambers of Real Estate and Builders Associations, Inc.,
(CREBA) vs. the Secretary of Agrarian Reform, (G.R. No.
183409, 18 June 2010)
• Reclassification of lands alone does not suffice –
conversion and reclassification differ from each
other.
• Reservation of public agricultural lands by Presidential
Proclamations for public use for purpose no longer
required to undergo conversion process
27:03 – Eto iyong jurisprudence na inaapply sa conversion kasi si
Sec. Pangandaman nag-issue ng moratorium on land use
conversion. Kinontest ng CREBA, it reached up to the SC. Sabi ng
SC, tama si Pangandaman because of Section 49. May quasi
legislative authority ang DAR to issue rules and regulations for that
purpose.
Magkaiba ang reclassification at conversion. Ang reclassification

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is governed by R.A. 7160, whereas conversion is governed by

Section 65 of R.A. 6657 and other laws before that. In fact iyong
reclassification, sinabi sa R.A. 7160, subject to the provisions of land
use conversion if ever there is reclassification. So, hindi pwedeng
sabihin na when the LGU reclassifies after June 15, 1988 automatic
na for conversion. They still have to apply for conversion clearance.
e. Jose, Julio, and Federico, All surnamed Junio vs. Ernesto
D. Garilao, (G.R. 147146, 29 July 2005)
Tax declarations are clearly not the sole basis for the
classification of a land.

f. Natalia Realty, Inc. vs. DAR 225 SCRA 278

“Sec. 4 of R.A. No. 6657 states that the CARL covers
regardless of tenurial arrangement and commodity
produced, all public, and private and agricultural lands”
and as the transcripts of the Constitutional Commission,
“agricultural lands” covered by agrarian reform refers only
those which are “arable and suitable land” and “do not
include commercial, industrial, and residential lands”. The
land subject of the controversy has been set aside.

g. Alarcon vs. CA, (G.R. No. 15028, 08 July 2003)

Where it was held that reclassification of land does not
suffice. The requirement that agricultural lands must go
through the process of conversion despite having
undergone reclassification was underscored.

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Agrarian Reform Capacity Development Service

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