cascading of DAR SPLIT

POLICY ORIENTATION ON THE REVISED GUIDELINES
AND PROCEDURES ON THE PARCELIZATION OF
LANDHOLDING WITH COLLECTIVE CERTIFICATES OF
LAND OWNERSHIP AWARD
1
Atty. Luis Meinrado C. Pañgulayan, MNSA, CESO I
Undersecretary for Legal Affairs

THE SUPPORT TO PARCELIZATION OF LANDS
FOR INDIVIDUAL TITLING (SPLIT) PROJECT
2
ATTY. LUIS MEINRADO C. PAÑGULAYAN, MNSA, CESO I
UNDERSECRETARY FOR LEGAL AFFAIRS

THE SPLIT PROJECT
The Support to Parcelization of Lands for Individual Titling (SPLIT) Project
was formulated by the Department of Agrarian Reform in pursuance of the
directive of the President to expedite and complete the parcelization of
collective certificates of land ownership award and the issuance of individual
titles to the agrarian reform beneficiaries (ARBs). The total project cost is
estimated at PhP 24.62 Billion. The loan proceeds from the World Bank is
PhP 19.24 Billion while the GOP counterpart is PhP 5.4 Billion. Project
implementation is from 2021 until 2024. It involves 138,567 collective CLOAs
covering an area of 1,380,422 hectares affecting a million ARBs nationwide.
3

The entire project is anchored on the premise that more secure property
rights are expected to provide the ARBs with incentives to make land
improvement investments toward increased farm productivity and
household incomes. Parcelization will result to the reduction of poverty and
promote economic development in the countryside. However, a vast array of
research reveals that the issuance of individual titles does not by itself
translate to economic empowerment
THE SPLIT PROJECT
4

In order to achieve the economic empowerment of the ARB, the following
must concur: the stabilization of agrarian rights, the enhancement of land
tenure security, and the attainment of agricultural productivity and
profitability.
THE SPLIT PROJECT
5

Providing an individual agrarian reform title to a beneficiary does not ipso
facto result to the economic empowerment of said beneficiary.
A compelling corollary is that the parcelization of the collective CLOA is not
even indispensable to attain such a goal.
THE SPLIT PROJECT
6

Thus, what is necessary is for the SPLIT Project to incorporate in its design,
the policies and measures that will ensure the stabilization of agrarian rights
through the confirmation of the award and of the coverability of the land;
land tenure security through conferment of title under the operation of the
Torrens system which allows the beneficiary to exercise the rights and
attributes of ownership: and agricultural productivity and profitability
though a farm system managed by an ARB organization or cooperative
which acts as conduit for access to credit and support facilities.
THE SPLIT PROJECT
7

Economic empowerment is enhanced when the government provides
financial reliefs to the beneficiaries which may range from condonation of
interest, the restructuring of the principal obligation, and may even include
relieving the ARBs with the obligation to pay the 30-year amortization.
The SPLIT Project should go beyond mere parcelization of collective titles.
THE SPLIT PROJECT
8

There remains a disconnect in the SPLIT Project between the output of
issuing individual agrarian reform titles and the long-term outcome of
economic empowerment. If we do not mind the gap, the welfare, well-being,
and the way of life of the people as well as its core values will not be
enhanced and protected.
THE SPLIT PROJECT
9

DEVELOPING POLICY
ENVIRONMENT OF THE
SPLIT PROJECT
10

JOINT DAR-LRA ADMINISTRATIVE ORDER
LAND REGISTRATION AUTHORITY REGISTRATION AND ANNOTATION
REQUIREMENTS ON DAR INVOLUNTARY PROCEEDINGS
11

The EPs, CLOAs, collective CLOAs, and other titles issued on the basis of any
Agrarian Reform Law shall be delivered to the ARB within one hundred
eighty (180) days from the date of registration of the RP Title by the ROD, or
within thirty (30) days from receipt by the concerned Provincial Agrarian
Reform Program Officer (PARPO) II of the owner’s duplicate copy of the EP,
CLOA, or any other title issued under any Agrarian Reform Law.
JOINT DAR-LRA A.O.
12

If the delivery by the MARPO/PARPO to the registered owner or to an heir of
the deceased ARB of the owner’s duplicate copy of the EPs, individual
CLOAs, collective CLOAs, or other titles issued on the basis of any Agrarian
Reform Law cannot be undertaken due to the absence of both parties or
other circumstances beyond the control of the Municipal Agrarian Reform
Program Officer (MARPO)/PARPO), the concerned MARPO/PARPO shall
execute a Sworn Statement detailing the reasons why the Owner’s Duplicate
Copy was not delivered to the ARB. A Template for the SWORN STATEMENT
designated as Form No. 2 of DAR A.O. No. 6, Series of 2021 is herein
attached as Annex “A” of this Joint Administrative Order.
JOINT DAR-LRA A.O.
13

The ROD shall annotate such Sworn Statement of the MARPO/PARPO in the
Registry Copy or Government Copy of Certificate of Title and Owner’s
Duplicate Title.
JOINT DAR-LRA A.O.
14

Lands acquired by Agrarian Reform Beneficiaries under the CARL or other
Agrarian Reform Laws shall not be sold, transferred, or conveyed except
through hereditary succession, or to the Government, or to the Land Bank
of the Philippines, or to other qualified Beneficiaries through the DAR for a
period of ten (10) years from the date of registration of the original CLOA or
EP. There is no need to impose another ten- year holding period for newly
issued individual/collective c-Titles CLOAs upon parcelization provided that
the original holding period has been complied with during the period of co-
ownership.
JOINT DAR-LRA A.O.
15

The form of the individual/collective computerized title (c-Title) to be issued
upon parcelization of the collective CLOA under the SPLIT Project shall be in
form prescribed by these rules. A template of the individual c-Title
designated as SPLIT Form No. 1 is herein attached as Annex “B” of the Joint
Administrative Order.
JOINT DAR-LRA A.O.
16

DAR has the authority to allow the conversion of agricultural lands under
certain conditions. The failure to implement the conversion plan within five
(5) years from the finality of the conversion order, or any violation of the
conversion order due to the fault of the applicant shall cause the land to be
automatically covered under CARP.
JOINT DAR-LRA A.O.
17

In authorizing the conversion of an awarded land, the Secretary of the DAR
shall issue an Order of Conversion which shall set forth the conditions to be
complied with by the registered owner.
JOINT DAR-LRA A.O.
18

Whenever an Order of Conversion is granted and the same has become final
and executory, within three (3) days upon receipt of the Order, the PARPO is
directed to communicate in writing to the ROD where the land is located for
the latter to immediately annotate on the dorsal portion of the Certificate of
Title of the converted land the conditions of the grant. This annotation can
only be cancelled upon a written Order issued by the DAR Secretary or the
Land Use Conversion Committee(LUCC)/concerned Regional Director.
JOINT DAR-LRA A.O.
19

JOINT DAR-DENR ADMINISTRATIVE ORDER
RULES GOVERNING THE MANAGEMENT OF COLLECTIVE CERTIFICATES OF
LAND OWNERSHIP AWARDS (CCLOAs) FALLING WITHIN LANDS CLASSIFIED
AS FOREST LANDS/TIMBERLAND, NATIONAL PARKS, AND MINERAL LANDS
OR WITHIN UNCLASSIFIED PUBLIC FORESTS
20

All lands covered by collective CLOAs within classified timberlands,
unclassified public forests, mineral lands, and national parks, shall be
parcelized in favor of ARBs as determined by the DAR.
JOINT DAR-DENR A.O.
21

For those lands issued with titles prior to 1919 in accordance with Act No. 926
(First Public Land Act) and subsequently issued with CLOAs, the DAR shall
submit the subdivision survey of the collective CLOAs to the DENR for
approval. Upon approval, the DAR shall issue individual computerized title.
JOINT DAR-DENR A.O.
22

For those timberlands and unclassified public forests covered by collective CLOAs
with issued titles after 1919, the effectivity of Act No. 2874 (Second Public Land
Act), the following manner of parcelization shall be observed:
• For those CLOAs falling within timberlands, and after the same have been
proven through exhaustive validation, such collective CLOAs shall remain
valid and effective until such time that appropriate action from DAR and the
issuance of tenure by DENR has been made.
• For those CLOAs issued over lands falling within unclassified public forests,
when the same is found to be suitable for agricultural use, the DENR shall
recommend to the President their classification or release as agricultural
lands.
JOINT DAR-DENR A.O.
23

For those lands eighteen percent (18%) in slope or over, but are classified as
agricultural land with issued titles or with vested rights before the effectivity
of PD No. 705, as amended, on May 19, 1975, and are covered with
collective CLOAs, the DENR shall not initiate their reclassification. The DAR
shall submit subdivision plans to DENR for verification and approval as basis
for the issuance of individual CLOAs.
JOINT DAR-DENR A.O.
24

However, for lands issued titles after the effectivity of PD No. 705, as
amended, such collective CLOAs shall remain valid and effective until such
time that appropriate action from DAR and the issuance of tenure by DENR
has been made.
JOINT DAR-DENR A.O.
25

For those National Parks covered by collective CLOAs with issued titles after
the effectivity of Republic Act (R.A.) No. 7586, as amended, by R.A. 11038 such
collective CLOAs shall remain valid and effective until such time that
appropriate action from DAR and the issuance of tenure by DENR has been
made.
JOINT DAR-DENR A.O.
26

During the implementation of parcelization and in the issuance of
appropriate tenurial instruments, the actual occupants on the lands covered
by collective CLOAs shall not be displaced.
JOINT DAR-DENR A.O.
27

JOINT DAR-DENR-LRA-NCIP ADMINISTRATIVE ORDER
CLARIFYING, RESTATING AND INTERFACING THE RESPECTIVE JURISDICTIONS,
POLICIES, PROGRAMS AND PROJECTS OF THE DEPARTMENT OF AGRARIAN REFORM
(DAR), DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR), LAND
REGISTRATION AUTHORITY (LRA) AND THE NATIONAL COMMISSION ON
INDIGENOUS PEOPLES (NCIP) IN ORDER TO ADDRESS JURISDICTIONAL AND
OPERATIONAL ISSUES BETWEEN AND AMONG THE AGENCIES
28

RA 8371:
THE INDIGENOUS PEOPLES’ RIGHTS ACT OF 1997 (IPRA )
• State shall recognize and promote the rights of Indigenous Cultural Communities
(ICCs)/Indigenous Peoples (IPs) within the framework of national unity and
development
• State shall protect the rights of ICCs/IPs to their ancestral domains to ensure their
economic, social and cultural well being and shall recognize the applicability of
customary laws governing property rights or relations in determining the ownership
and extent of ancestral domain
29

ANCESTRAL DOMAIN (AD) refers to all areas generally belonging to ICCs/IPs
comprising of lands, inland waters, coastal areas, and natural resources.
Certificate of Ancestral Domain Title (CADT) refers to a title formally recognizing
the rights of possession and ownership of ICCs/IPs over their ancestral domains.
ANCESTRAL LAND (AL) refers to land occupied, possessed and utilized by individuals,
families and clans who are members of the ICCs/IPs since time immemorial.
Certificate of Ancestral Land Title (CALT) refers to a title formally recognizing the
rights of ownership of ICCs/IPs over their ancestral land.
RIGHTS OF ICC/IPs
30

All departments and other governmental agencies shall henceforth be strictly
enjoined from issuing, renewing, or granting any concession, license or lease,
or entering into any production-sharing agreement, without prior
certification from the NCIP that the area affected does not overlap with any
ancestral domain.
Section 59, IPRA Law
CERTIFICATION PRECONDITION
31

Property rights within the ancestral domains already existing and/or vested
upon effectivity of this Act, shall be recognized and respected.
Section 56, IPRA Law
EXISTING PROPERTY RIGHTS REGIMES
32

• Ancestral Domains (Section 3A, IPRA LAW)
• Ancestral Lands (Section 3B, IPRA LAW)
• Communal Rights (Section 55, IPRA LAW)
SUBJECT TO VESTED RIGHTS UNDER SECTION 56
33

• R.A. NO. 8371, THE INDIGENOUS PEOPLES RIGHTS ACT (IPRA) OF 1997
State shall recognize and promote the rights of ICCs/IPs within the framework of
national unity and development. NCIP issues the CADT and the CALT.
• COMMONWEALTH ACT (CA) 141 AS AMENDED, PUBLIC LAND ACT
All lands of the public domain are under the exclusive jurisdiction of the DENR
except those placed by law and/or by Executive Issuances under the jurisdiction of
other government agencies.
• R.A. 6657, COMPREHENSIVE AGRARIAN REFORM LAW (CARL) OF 1988, AS
AMENDED
Constitutional mandate on agrarian reform implemented by the DAR which issues
EPs/CLOAs.
JOINT DAR-DENR-LRA-NCIP A.O.
34

• Land Titles issued by DENR and DAR.
• Land Titles issued by NCIP are, however, directed by IPRA to be registered
with the appropriate Register of Deeds.
ACT 496 (LAND REGISTRATION ACT), AS AMENDED BY
PD 1529 (PROPERTY REGISTRATION DECREE)
35

• Issues of overlapping jurisdiction between the DAR, DENR and NCIP operational
issues.
• Conflicting claims in the implementation of their respective programs, which must
be seriously addressed.
JOINT DAR-DENR-LRA-NCIP
ADMINISTRATIVE ORDER NO. 01 SERIES OF 2012
36

• Address or resolve jurisdictional, operational and policy issues elevated to it
that affect the implementation of the CARL, IPRA, Public Land Act, Land
Registration Act/Property Registration Decree in relation to the issuance and
registration of CADTs/CALTs.
• Composed of the designated Undersecretaries of DAR and DENR, designated
Commissioner or Executive Director of the NCIP and designated Deputy
Administrator of LRA.
JOINT NATIONAL COMMITTEE ON
DAR, DENR, LRA AND NCIP CONCERNS
37

• A complete, well-consummated right that cannot be divested without the consent
of the person to whom it belongs.
• One that is fixed or established and no longer open to controversy.
• It is absolute and unconditional, the exercise of which no obstacle exists.
• It also refers to a property right which has become fixed and established, and is no
longer open to doubt or controversy; an immediately fixed right of present or
future enjoyment as distinguished from an expectant or contingent right.
JAO Section 3 (n)
VESTED RIGHT
38

Issued separately by DAR, DENR, and LRA prior to the approval by the NCIP of the
CADT/CALT application after compliance with the requirements and processes.
• Certification is issued by DENR or DAR after projection and verification by said
agencies
• Upon determination that there is no overlapping of titled properties or approved
survey plans with the AD/AL survey plan.
• Should there be overlapping, it is issued after segregation/exclusion of the
overlapped titled properties or approved survey plans from the survey plan and the
technical description of the AD/AL.
JAO Section 3 (n)
CERTIFICATION OF NON-OVERLAP (CNO)
39

Conversely, DAR and DENR shall, before processing or further processing applications for
land titles pursuant to their respective mandates must notify NCIP of the specific area to be
titled.
NCIP shall certify, subject to the provisions of this section on projection of survey plans and
issuance of certification of non-overlap, whether the same affects an AD or AL.
Involving “conflict areas” (i.e., identified by the agencies concerned with
pending/overlapping jurisdictional/operational issues or conflicting claims which are
contentious or potentially contentious).
JAO Section 13
NCIP CERTIFICATION
40

ADMINISTRATIVE ORDER NO. 02, SERIES OF 2021
IMPLEMENTING RULES AND REGULATIONS ON THE CONDONATION OF INTEREST
AND THE RESTRUCTURING OF THE PRINCIPAL OBLIGATION OF AGRARIAN REFORM
BENEFICIARIES UNDER PARAGRAPH (M), SECTION 4 OF REPUBLIC ACT NO. 11494
41

On 11 September 2020, Congress passed R.A No. 11494, otherwise known
as the “Bayanihan to Recover as One Act.” The Bayanihan Law 2 contains
provisions which have an impact on CARP implementation, thus:
Section 4. COVID-19 Response and Recovery Interventions. – Pursuant
to Article VI, Section 23(2) of the Constitution, the President is hereby
authorized to exercise powers that are necessary and proper to
undertake and implement the following COVID-19 response and
recovery interventions:
A.O. NO. 02, SERIES OF 2021
42

(m) Provision of financial relief to Agrarian Reform Beneficiaries during
state of national emergency as declared by the President, the payment
of interests, penalties, and surcharges of loans used for land acquisition
to any and all government agencies and GOCCs including Land Bank of
the Philippines (LBP) shall be condoned, and the remaining original
principal value be restructured without interest thereon: PROVIDED,
That all previous payment for interest be credited to principal payment
instead: PROVIDED, FURTHER, That the condonation of interests,
penalties and surcharges from these loans shall be in conformity with
the applicable general banking laws and regulations of the Bangko
Sentral ng Pilipinas (BSP);
43

The Office of the President issued on 23 October 2020 the Implementing
Guidelines of R.A. No. 11494.
Section 14.7 of the Guidelines provides that the DAR shall serve as the
lead agency for the implementation of the intervention for ARBs (i.e.
the condonation of loan interests, penalties, and surcharges, and loan
restructuring), in partnership with the LBP.
44

Section 3.6 of the Implementing Guidelines also provides, thus:
“Financial relief for Agrarian Reform Beneficiaries – Condonation of interests, penalties and
surcharges of loans taken by Agrarian Reform Beneficiaries (ARB) for land acquisition shall be
granted upon approval of the loan restructuring application.
3.6.1. The loans may be restructured for a maximum period of five (5) years.
3.6.2. The interest payments made as of the date of Declaration of a State of Public Health
Emergency on 08 March 2020 shall be credited prospectively against the outstanding
principal payment of the ARBs.
3.6.3. The condonation of interest, penalties and surcharges from these lands shall be in
conformity with the applicable general banking laws and regulations of the BSP.”
45

The obligation of an ARB to pay the six percent (6%) annual interest as
provided in Section 26 of R.A. No. 6657, as amended, is hereby extinguished
effective 15 September 2020 for the entire duration of the actual
restructuring period to be determined by the DAR and as mentioned under
paragraph no. 4.6 of these rules.
46

ARBs who are still in the process of completing the payment of their thirty (30)
year amortization shall no longer pay the six percent (6%) annual interest effective
15 September 2020, for the entire duration of the restructuring period mentioned
in the preceding paragraph.
47

Payment of the six percent (6%) annual interest made as of date of
Declaration of a State of Public Health Emergency on 08 March 2020 and
thereafter shall be credited prospectively against the outstanding principal
payment of the ARBs. If the total amount of the interest payment credited
to the principal obligation exceeds the amount of the balance, the loan
obligation is extinguished, and the awarded land is fully paid. Any unpaid
interest based on the obligation under Section 26 of R.A. No. 6657, as
amended, as of 08 March 2020 and thereafter is condoned.
48

ARBs, who have already fully paid the loan obligation prior to the date of
effectivity of R.A. No. 11494 and are no longer able to avail of the benefits
resulting from the condonation of the interest, or the restructuring of the
principal loan amount, shall be provided with priority access to credit by the
LBP and priority access to support services by the DAR.
49

The payment of the principal obligation of ARBs shall resume on 09 April
2021 upon the lapse of the one (1)-year moratorium for the payment of the
annual amortizations as per LBP Resolution No. 20-256 which was approved
by the Presidential Agrarian Reform Council (PARC) in Resolution No. 2020-
SP-02 dated 08 April 2020.
50

The annual payment of the principal value shall be restructured by further
extending the moratorium period until 31 December 2021 since the lifting of
the State of Calamity by the President, is extended until 12 September 2021,
unless earlier lifted or extended, as per Proclamation No. 1021. The loans
may be restructured for a maximum period of five (5) years subject to the
joint determination by the DAR and the LBP.
Note: Proclamation No. 1218, Series of 2021 extends the State of Calamity
until 12 September 2022
51

The LBP shall issue the prescribed accounting procedures and entries for the
purpose of implementing these Guidelines.
52

ARB may opt to continue paying their monthly amortization during the
period of the moratorium.
53

These rules and regulations shall govern the implementation of the financial
obligations of ARBs as previously provided under Section 26 of R.A. No.
6657 as amended by Section 11 of R.A. No. 9700 but is now covered by
Section 4, Paragraph m of R.A. No. 11494. Thus, this rule shall continue to
be in force and effect even after the expiration of R.A. No. 11494 upon the
adjournment of the Philippine Congress on December 2020.
54

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