Module 4-B

[Land Redistribution under CARL, as amended]

A. Qualified Beneficiaries

v Section 22, RA 6657

-Lands covered by CARP shall be distributed:

1. (as much as possible) to landless residents of the same barangay

2. (in the absence thereof) landless residents of the same municipality in the following order of priority:
(a) agricultural lessees and share tenants;
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(e) actual tillers or occupants of public lands;
(f) collectives or cooperatives of the above beneficiaries; and
(g) others directly working on the land.

l That the children of landowners who are qualified under Section 6 of this Act-be given preference in the distribution of
the land of their parents: and Provided, that actual tenant-tillers in the landholdings shall not be ejected or removed
therefrom.

l Beneficiaries under Presidential Decree No. 27 who have culpably sold, disposed of, or abandoned their
land-disqualified as beneficiaries under this Program.
l A basic qualification of a beneficiary:
1. Willingness
2. Aptitude
3. The ability to cultivate and make the land as productive as possible

l System of monitoring the record or performance of each beneficiary-adopted by the DAR

l any beneficiary guilty of negligence or misuse of the land or any support extended to him shall forfeit his right to
continue as such beneficiary.
l The DAR shall submit periodic reports on the performance of the beneficiaries to the PARC.
l If there is no enough land to accommodate some of the beneficiaries-they may be granted ownership of other lands
available for distribution under this Act, at the option of the beneficiaries.
l Farmers already in place and those not accommodated in the distribution of privately-owned lands-will be given
preferential rights in the distribution of lands from the public domain.

v Section 48, DAR A.O. No. 07, series of 2011

l Landowners availing of VOs are disqualified to be ARBs(Agrarian Reform Beneficiaries)

-landowners who have voluntarily offered their landholdings for coverage under CARP
-landowners who have previously waived their rights to retain

Reason: LO’s voluntary offer or his previous waiver is construed to be an inability and/or unwillingness to cultivate the land and
make it productive

B. Distribution: The Essentials

v Section 22-A, RA 6657, as amended

(a) agricultural lessees and share tenants

v Section 23, RA 6657, as amended

Distribution Limit-qualified beneficiary may own not more than three (3) hectares of agricultural land

v Sections 93-95, DAR A.O. No. 07, s. 2011

l Section 93:Allocation of Awarded Lands

1. agricultural lessees, tenants, and regular farm workers of the same landholding up to a maximum of three (3) hectares
each.
Reah Shyne Refil EH307 AgraLaw Atty. Noel Felongco I
*In case the landholding is not sufficient -shall be distributed in the manner provided in Section 94 of this A.O.

2. Determine the remaining area left for distribution to seasonal farm workers, other farm workers, actual tillers or occupants
of public lands, and others directly working on the land, in the manner provided by Section 95 of this A.O.

3. Excess areas, if any, shall be awarded to collectives or cooperatives of the above beneficiaries.

Note: the tenants/lessees in such excess areas shall be given a reasonable time to harvest the produce of his/her crop, subject to
the rules on standing crops.

l preferred beneficiaries approved upon nomination of the LO-may select a contiguous and compact area, no more than
three (3) hectares, to be allocated to them prior to determining the allocation for the ARBs.
l in no case may the distribution of lands to preferred beneficiaries deprive each of the agricultural lessees and tenants of
being awarded the portion of the landholding they are actually tenanting/leasing

l Section 94:If Land Not Enough for Agricultural Lessees, Tenants, and Regular Farmworkers
1. the landholding shall be divided equally among them
2. in no case may the allocation of lands deprive each of the agricultural lessees and tenants of being awarded the portion of the
landholding they are actually tenanting/leasing
3. which shall not be more than three (3) hectares.

*extreme cases that the land area is not enough to provide all them one thousand (1,000) square meters each:
1. the names of the said agricultural lessee, tenant, and regular farmworkers shall be listed from the ARB who has leased/served
the most aggregate time to him/her who has leased/served least.
2. Each ARB shall, thereafter, be awarded one thousand (1,000) square meters each starting from the person at the top of the list,
until the area remaining is less than one thousand (1,000) square meters.
3. The remaining land area, if any, shall then be distributed equally among those who received one thousand (1,000) square meters
each.

Note: Other qualified beneficiaries under Section 22 of RA. No. 6657, as amended, who are displaced after the distribution
of all available land to tenants/lessees, may still qualify as ARBs in other lands covered under the CARP.
l Section 95: Allocation of Seasonal Farmworkers, Other Farmworkers, Actual Tillers or Occupants of Public Lands,
and Others Directly Working on the Land

-The remaining land shall be allocated to the seasonal farmworkers, other farmworkers, actual tillers or occupants of public lands,
and others directly working on the land in the following manner:

1. the remaining area shall be distributed equally among seasonal farmworkers, but in no case shall each be awarded more than
three (3) hectares each.

*In the extreme cases that the land area is not enough to provide all the seasonal farmworkers one thousand (1,000) square
meters each, the names of the said seasonal farmworkers shall be listed from the farmworker who has served the most aggregate
time to him/her who has served least. Each seasonal farmworker shall, thereafter, be awarded one thousand (1,000) square meters
each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The
remaining land area, if any, shall then be distributed equally among those who received one thousand (1,000) square meters each.

2. If after all the seasonal farmworkers have been allocated three (3) hectares each there still remains a land area, or if
there are no seasonal farmworkers-it shall be distributed equally among the other farmworkers, but in no case shall each be
awarded more than three (3) hectares each.

*In the extreme cases that the land area is not enough to provide all the other farmworkers one thousand (1,000) square
meters each, the names of the said other farmworkers shall be listed from the farmworker who has served the most aggregate time
to him/her who has served least. Each of the other farmworkers shall, thereafter, be awarded one thousand (1,000) square meters
each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters. The
remaining land area, if any, shall then be distributed equally among those who received one thousand (1,000) square meters each.

3. If after all the other farmworkers have been allocated three (3) hectares each there still remains a land area, and if
the landholding is an untitled private agricultural land-it shall be distributed equally among the actual tillers or occupants of
that public land, but in no case shall each be awarded more than three (3) hectares each.

*In the extreme cases that the land area is not enough to provide all the actual tiller/occupant one thousand (1,000) square
meters each, the names of the said actual tiller/occupant shall be listed from the actual tiller/occupant who has tilled/occupied the
said land the most aggregate time to him/her who has tilled/occupied least. Each of the actual tiller/occupant shall, thereafter, be
Reah Shyne Refil EH307 AgraLaw Atty. Noel Felongco I
awarded one thousand (1,000) square meters each starting from the person at the top of the list, until the area remaining is less
than one thousand (1,000) square meters. The remaining land area, if any, shall then be distributed equally among those who
received one thousand (1,000) square meters each.

4. Finally, if after all the actual tiller/occupant have been allocated three (3) hectares each there still remains a land area,
or if the landholding is not an untitled private agricultural land-it shall be distributed equally among the other persons directly
working on the land, but in no case shall each be awarded more than three (3) hectares each.

*In the extreme cases that the land area is not enough to provide all these other persons one thousand (1,000) square
meters each, the names of these other persons shall be listed from him/her who has worked the said land the most aggregate time
to him/her who has worked least. Each of the actual tiller/occupant shall, thereafter, be awarded one thousand (1,000) square
meters each starting from the person at the top of the list, until the area remaining is less than one thousand (1,000) square meters.
The remaining land area, if any, shall then be distributed equally among those who received one thousand (1,000) square meters
each.

C. Award to Beneficiaries

v Sections 22, 24-25, 27-28,

37, and 73, 96, RA 6657, as
Amended

l SECTION 24. Award to Beneficiaries

*rights and responsibilities of the beneficiary-commence from the time the DAR makes an award of the land to him,
*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-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.

l SECTION 25. Award Ceilings for Beneficiaries

-Beneficiaries shall be awarded an area not exceeding three (3) hectares which may cover a contiguous tract of land or several
parcels of land cumulated up to the prescribed award limits

-For purposes of this Act, a landless beneficiary is one who owns less than three (3) hectares of agricultural land.

-The beneficiaries may opt for collective ownership (such as co-ownership or farmers cooperative or some other form of
collective organization)
- Provided, That the total area that may be awarded shall not exceed the total number of co-owners or member of the cooperative
or collective organization multiplied by the award limit above prescribed, except in meritorious cases as determined by the PARC.
-Title to the property shall be issued in the name of the co-owners or the cooperative or collective organization as the case may be.

l Section 27: Transferability of Awarded Lands.

-Lands acquired under this Act

1. may not be sold
2. transferred or
3. conveyed

Exception:
1. through hereditary succession, or
2. to the government, or to the LBP,
3. or to other qualified beneficiaries for a period of ten (10) years

Note: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.

*land 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 as a condition for such transfer or conveyance, shall cultivate
the land himself.

Reah Shyne Refil EH307 AgraLaw Atty. Noel Felongco I

-Failing compliance herewith, the land shall be transferred to the LBP which shall give due notice of the availability of the land

-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.

l Section 37: Support Services to the Beneficiaries

-The PARC shall ensure that support services to farmer-beneficiaries are provided, such as:

(a) Land surveys and titling;

(b) Liberalized terms on credit facilities and production loans;
(c) Extension services by way of planting, cropping, production and post-harvest technology transfer, as well as marketing and
management assistance and support to cooperatives and farmers’ organizations;
(d) Infrastructure such as access trails, mini-dams, public utilities, marketing and storage facilities; and
(e) Research, production and use of organic fertilizers and other local substances necessary in farming and cultivation.

l Section 73:Prohibited Acts and Omissions

(a) The ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the
total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by
farmer-beneficiaries.

(b) The forcible entry or illegal detainer by persons who are not qualified beneficiaries under this Act to avail themselves of the
rights and benefits of the Agrarian Reform Program.

(c) The conversion by any landowner of his agricultural land into any non-agricultural use with intent to avoid the application of
this Act to his landholdings and to dispossess his tenant farmers of the land tilled by them.

(d) The willful prevention or obstruction by any person, association or entity of the implementation of the CARP.

(e) The sale, transfer, conveyance or change of the nature of lands outside of urban centers and city limits either in whole or in
part after the effectivity of this Act. The date of the registration of the deed of conveyance in the Register of Deeds with respect to
titled lands and the date of the issuance of the tax declaration to the transferee of the property with respect to unregistered lands, as
the case may be, shall be conclusive for the purpose of this Act.

(f) The sale, transfer or conveyance by a beneficiary of the right to use or any other usufructuary right over the land he acquired
by virtue of being a beneficiary, in order to circumvent the provisions of this Act.

Case: DAR vs. Carriedo

Doctrine:
Facts:
l In 1972, Petitioner Mendoza became the tenant of an agricultural land owned by Roman by virtue of Contrato King
Pamamuisan.
l Mendoza has been paying 25 piculs of sugar every crop year as lease rental to Roman. Later, it was changed to P2,000 per
crop year and the land was no longer devoted to sugarcane.
l In 1979, Roman died and left the entire land to his surviving wife, Alberta and 2 sons, Mario and Antonio.
l In 1984, by virtue of the Deed of Extrajudicial Sucession with Waiver of Right executed by Antonio, Alberta and Mario
became the co-owners in equal proportion of the agricultural land left by Ramon.
l In 1986, Mario sold 70.4788 hectares to respondent Carriedo.
l The area bought by Carriedo includes the land tenanted by Mendoza. Medoza alleged that the sale took place without his
knowwledge and consent.
l In 1990, Carriedo sold all of the landholdings to People’s Livelihood Foundation, Inc. (PLFI).
l All the lands, except one, were subjected to Voluntary Land Transfer/Direct Payment Scheme and were awarded to agrarian
reform beneficiaries in 1997.
l Carriedo and Mendoza were involved in three other cases over the land.
l First, the ejectment and Collection of unpaid rentals case filed by Carriedo against Mendoza.

SC:
1) Carriedo is the absolute owner of the five (5) hectare land;
2) Mendoza had knowledge of the sale between Carriedo and Mario De Jesus, hence he is bound by the sale; and
3) Due to his failure and refusal to pay the lease rentals, the tenancy relationship between Carriedo and Mendoza had been
terminated.

Reah Shyne Refil EH307 AgraLaw Atty. Noel Felongco I

Issue:
Ruling:

D. Payment by Beneficiaries

v Section 26, RA 6657, as amended

-shall be paid by the beneficiaries to the LBP in 30 annual amortizations at 6% per annum.
-payments for the first 3 years after the award-may be at reduced amounts as established by the PARC
-Provided, the first 5 annual payments may not be more than 5% of the annual gross production as established by the DAR
-scheduled annual payments after the 5th year exceed 10% of the annual gross production and the failure to produce is not due to
the beneficiary’s fault-LBP may reduce the interest rate or reduce the principal obligation to make the repayment affordable.
-the LBP shall have a lien by way of mortgage on the land awarded to the beneficiary
-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.

E. Corporate Farms

F. Transferability of Acquired Land under CARL, as amended

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 to 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.

Estate of Panlilio vs. Dizon

1. Doctrine: There is no irreconcilable conflict between PD 27 and Sec. 6 of EO 228. Thus, the two (2) provisions can be made
compatible by maintaining the rule in PD 27 that lands acquired under said decree can only be transferred to the heirs of the
original beneficiary or to the Government

Facts:
l Panlilio is the owner of the disputed landholdings, Hacieda Masamat. In 1961, Panlilio entered into a contract of lease over
the said landholdings with the wife of her nephew, Paulina Mercado.
l In 1973, the DAR issued 38 Certificates of Land Transfer (CLTs) to Panlilio’s tenants. This is pursuant to the OLT
(Operation Land Transfer) under PD 27. [Note: PD 27 is a Decree on the emancipation of tenants)
l The tenant-awardees were the defendants in the complaints filed by Lizares.
l In 1973, Mercado filed a letter-complaint with DAR questioning the issuing of CLTs to Panlilio’s tenants. She alleged,
among others, that the land was outside the coverage of PD 27 since it was principally being planted with sugar. She claimed
that respondents surreptitiously planted palay (rice) instead of sugar so that the land will be covered by the law.
l The DAR concluded the CLTs as “properly and regularly issued.”
l Mercado also filed a similar complaint with the Court of Agrarian Relations(CAR)
l In 1976, the tenant of the portion of the land planted with sugar cane petitioned to DAR to revert their sugarland to riceland
so that it may be covered by the Agrarian Reform Law. This was with the conformity of Panlilio.

Reah Shyne Refil EH307 AgraLaw Atty. Noel Felongco I

l In 1977, Panlilio executed an affidavit stating her desire to place the whole Hacienda under PD 27 without exception and to
be sold to the tenants.
l By virtue of the said affidavit, the DAR Secretary, ordered the Regional Director to distribute all the land transfer certificates
as desired by Panlilio.
l Based on the action of the DAR Secretary, the CAR dismissed the complaint of Mercado on the ground that the principal
issue in the case has become moot and academic because of the placement of the land under the land transfer program of the
government.
l In 1986, Palilio died and in 1993, the DAR issued Emancipation Patents to the tenants of Panlilio.
l The RTC appointed Lizares as executor of the estated of Panlilio. Lizaress is the son of Panlilio’s administrator of the
hacienda during her lifetime.
l Lizares filed complaints with the Provincial Agrarian Reform Adjudicatior (PARAD) for annulment of coverage of
landholdings under PD 27 and ejecment againts the tenants. All the cases were consolidated.

Ruling of the PARAD: the complaint of Lizares was dismissed. Grounds: 1. landholdings properly placed under PD 27 through
the affidavit executed by Panlilion. 2. based on the report of the DAR, the landholdings was devoted to palay. 3. laches. Palilio
failed while she was alive to bring to the attention of the DAR and CAR the affidavit which revokes her previous affidavit.

Ruling of DARAB: upon appeal, DARAB affirmed the PARAD Decision

l Prior to the DARAB Decision, Lizares and some of the defendant-appellees filed a Joint Partial Motion to Dismiss the
DARAB. Apparently, Lizares received a huge form certrain Catap for the settlement of the case.
l Earlier on, Lizares filed motion to withdraw appeal in favor of some defendant-appellees in the case as they agreed to settle
and compromise with Lizares. But the motion was resisted by other defendant -appellees on the ground that withdrawal is
not proper because a piece-meal withdrawal is not proper as the matter in cotrovery is common and the same.
l But the motion to withdraw appeal was not resolved because Lizares failed to attend the hearings.
l Thus, the Decision was promulgated in favor of all defendant-appellees.
l Lizares elevated the DARAB cases to the CA for review.
l CA ruled in favor of Lizares. The Certificate of Land Transfer issued to respondents was declared null and void.

Issue:
1. WON the land was covered by PD 27 despite being planted with sugarcane
2. WON the land acquired through PD 27 can be validly transferred by means other than by heriditary succession or to the
Government

Ruling:

1. Yes. The land was covered by PD 27.

l While PD 27 clearly applies to private agricultural lands primarily devoted to rice and corn under a system of sharecrop or
lease-tenancy, whether classified as landed estate or not, it does not preclude nor prohibit the disposition of landholdings
planted with other crops to the tenants by express will of the landowner under PD 27.
l In her affidavit, Panlilio expressed her intent to include the 65.19 hectares to be placed under the OLT pursuant to PD 27 in
favor of her tenants which otherwise would have been exempt.
l Indeed, waiver or an intentional and voluntary surrender of a right can give rise to a valid title or ownership of a property in
favor of another under Article 6 of the Civil Code. Thus, such disposition through the OLT pursuant to PD 27 is indeed legal
and proper and no irregularity.

2. No. land acquired through PD 27 can only be validly transferred by heriditary succession or to the Government.

[*Hereditary succession-succession by intestate succession or by will to the compulsory heirs under the Civil Code, but does not
pertain to testamentary
succession to other persons.
*"Government"-the DAR through the Land Bank of
the Philippines which has superior lien by virtue of mortgages in its favor.

l PD 27 is clear that after full payment and title to the land is acquired, the land shall not be transferred except to the heirs of
the beneficiary or the Government. If the amortizations for the land have not yet been paid, then there can be no transfer to
anybody since the lot is still owned by the Government. The prohibition against transfers to persons other than the heirs of
other qualified beneficiaries stems from the policy of the Government to develop generations of farmers to attain its avowed
goal to have an adequate and sustained agricultural production. With certitude, such objective will not see the light of day if
lands covered by agrarian reform can easily be converted for non-agricultural purposes.
l Sec. 6 of EO 228 provides that ownership of lands acquired by farmer-beneficiary maybe tranferred after full-payment of
amortizations.
l It cannot be construed to mean that the farmer- beneficiary can sell the land even to a non-qualified person
l Reason:
Reah Shyne Refil EH307 AgraLaw Atty. Noel Felongco I
2. First, the provision in question is silent as to who can be the transferees of the land acquired through the CARP. The rule in
statutory construction is that statutes in pari materia should be construed together and harmonized.

3. Since there appears to be no irreconcilable conflict between PD 27 and Sec. 6 of EO 228, then the two (2) provisions can be
made compatible by maintaining the rule in PD 27 that lands acquired under said decree can only be transferred to the heirs of the
original beneficiary or to the Government
4. Second, PD 27 is the specific law on agrarian reform while EO 228 was issued principally to implement PD 27. This can easily
be inferred from EO 228 which provided for the mode of valuation of lands subject of PD 27 and the manner of payment by the
farmer-beneficiary and mode of compensation to the land owner.

v Policy behind the Prohibition:

1. The rights of the farmer-beneficiary to possess, cultivate, and enjoy the landholding for himsel are granted by the government
to him and to no other.
l To insure his continued possession and enjoyment of the property, he could not, under the law, make any valid form of
transfer except to the government or by hereditary succession, to his successors.

2. In addition, the prohibition was expanded not only to cover the title issued to the tenant-farmer but also the rights and interests
of the farmer in the land while he is still paying the amortizations on it.

l A contrary ruling would make the farmer an "easy prey to those who would like to tempt [him/her] with cash in exchange for
inchoate title over the same," and PD 27 could be easily circumvented and the title shall eventually be acquired by non-tillers
of the soil.

3. Effect of sale to others: the sale is null and void.

4. The prohibition even extends to the surrender of the land to the former landowner.

Reah Shyne Refil EH307 AgraLaw Atty. Noel Felongco I