Can you legally sell an agricultural land with a CLOA Title? Or can you safely buy an agricultural land with a CLOA Title? Are there any restriction in dealing with lands with CLOA Title?

Pwede bang ibenta, ilipat o isangla ang lupang may CLOA Title?
Safe ba bilhin ang lupang may CLOA title?
Maaari bang ibenta ang lupang may CLOA TITLE?
Pwede bang bilhin ang lupang naka CLOA TITLE?

CLOA stands for Certificate of Land Ownership Award. It is awarded to the beneficiaries of the Comprehensive Agrarian Reform Program (CARP) as implemented under Republic Act 6657, otherwise known as the Comprehensive Agrarian Reform Law (CARL). This program was extended by Republic Act 9700, otherwise known as the Comprehensive Agrarian Reform Program Extension with Reforms (CARPER).

The Supreme Court explained the nature of the CLOA and the restriction on its transferability in the case of Lebrudo v. Loyola (G.R. No. 181370, March 9, 2011) in this wise:

“A Certificate of Land Ownership or CLOA is a document evidencing ownership of the land granted or awarded to the beneficiary by DAR, and contains the restrictions and conditions provided for in RA 6657 and other applicable laws. Section 27 of RA 6657, as amended by RA 9700,20 which provides for the transferability of awarded lands, states:

SEC. 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 Coordinating Committee (PARCCOM), as herein provided, shall, in turn, be given due notice thereof by the BARC.

The title of the land awarded under the agrarian reform must indicate that it is an emancipation patent or a certificate of land ownership award and the subsequent transfer title must also indicate that it is an emancipation patent or a certificate of land ownership award.

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. x x x (Emphasis supplied)

It is clear from the provision that lands awarded to beneficiaries under the Comprehensive Agrarian Reform Program (CARP) may not be sold, transferred or conveyed for a period of 10 years. The law enumerated four exceptions: (1) through hereditary succession; (2) to the government; (3) to the Land Bank of the Philippines (LBP); or (4) to other qualified beneficiaries. In short, during the prohibitory 10-year period, any sale, transfer or conveyance of land reform rights is void, except as allowed by law, in order to prevent a circumvention of agrarian reform laws.”

Pertinent provisions of DAR Administrative Order No. 07-16:

* “Holding Period – refers to the period of time commencing from the date of registration of the EP, CLOA, or other Title issued pursuant to an agrarian reform program of the State until the lapse of ten (10) calendar years AND the payment of the amortization[1] thereof, whichever comes later.[2]”

* “As a general rule, the transfer of ownership of all Awarded Lands to a private person during the holding period is prohibited unless the transferee is a qualified beneficiary.  The following transfers are not covered by the abovementioned general restrictions:

1. Transfer via intestate succession;
3. Transfer of legitimes to compulsory heirs”
 
* “The determination of whether the transferee is qualified to be a beneficiary is within the jurisdiction of the DAR.  Section 22 of R.A. No. 6657, as amended, and the pertinent rules and procedures of the Department shall be the standard in the aforementioned determination.”

* “The transferee shall assume the obligation of the transferor to pay the remaining amortization, if any, to the LBP or, in case of a VLT/DPS, to the landowner.  Should the transfer be conducted through methods other than hereditary succession, the transferor, at his option, may demand the transferee to pay the amount he has already paid to the LBP or, in case of a VLT/DPS, to the landowner.”

* “Pursuant to DOJ Opinion No. 59, Series of 2015, no Awarded Land may be mortgaged prior to the termination of the holding period.”

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