TRANSFER ACTION TEMPLATE

I.          INTRODUCTION
This template may serve as a guide in deciding cases where the main issue
pertains to the application of clearance in relation to transfer and/or
conveyance of land covered by agrarian laws, particularly P.D. 27 and R.A.
6657.
This template shall serve as guide as regards steps to take in order to arrive at a
just, reasonable and comprehensive decision related to the transfer and/or
conveyance of land covered under the laws of agrarian reform, taking into
consideration the pertinent laws, administrative issuances and jurisprudence
which may aid the decision maker in performing his/her task.
II.         CHECKLIST OF DOCUMENTARY REQUIREMENTS IN ALL
CASES:
[  ]        Written request of the transferor for the application filed with the
MARO
[  ]        Deed or instrument to be registered
[  ]        Certified true copy of the OCT/TCT or Tax Declaration if the land is
not covered by a Certificate of Title
[  ]        The comments and recommendations of the MARO and the PARO
[  ]        Duly notarized Special Power of Attorney if the applicant is not the
transferor/owner of the property
TRANSFERS MADE BY THE FARMER-BENEFICIARIES, WHERE
APPLICATION IS FILED PRIOR TO JANUARY 5, 1996
Common Requirements:
[  ]        Certified true copy of the evidence of the award (CLOA,
Emancipation Patent, Free Patent)
[  ]        Affidavit of the transferee that he/she and spouse have a total
landholding inclusive of the land to be acquired of not more than five (5)
hectares if he/she is a non-beneficiary and three (3) hectares if
beneficiary
[  ]        Proof of service that the BARC has been furnished a copy of the
affidavit of the transferee; or proof that the affidavit is attached to the
copy of the Register of Deeds
[  ]        MARO's report on the conduct of the field investigation whether
or not the subject land is tenanted by a person other than the transferee
If transfer is made through hereditary succession:
[  ]        Any proof that would show that the beneficiary is dead
[  ]        Any of the following, whichever is applicable:
 —        Copy of the will, if any, and of a court order allowing
probate thereof;
—        Copy of affidavit of sole adjudication if there is only one
heir; or
—        Extra-judicial settlement between the heirs and/or waiver of
rights in favor of one heir, should there be several heirs.
—        If none of the above three items are executed, whichever
applies below:
i.          For CLT covered landholdings: Apply M.C.
No. 19, Series of 1978;
ii.         For EP or CLOA covered landholdings: The
Order/Resolution of the Estate Court.
If there is an allegation that the amortization has already been fully paid:
[  ]        Certificate of Full Payment of Amortization issued by LBP (or
by DAR in case of lands covered by VLT/DPS)
If the transferee is a qualified beneficiary who is not the heir of the original
FB:
[  ]        Certification by the MARO that the transferee is qualified as a
beneficiary
TRANSFERS MADE BY THE FARMER-BENEFICIARIES, WHERE
APPLICATION IS FILED ON OR AFTER JANUARY 5, 1996
Common Requirements:
[  ]        Certificate of Full Payment of Amortization issued by LBP (or
by DAR in case of lands covered by VLT/DPS), or certified true copy of
OCT/TCT with a notation that the amortizations due has already been
paid in full
[  ]        Certification Regarding Payment of Irrigation Fees from NIA
and Certification whether or not subject property is irrigated and covered
by service area of communal irrigation system
[  ]        Certificate Regarding Loans (equipment, production, etc.) from
DAR/LBP
[  ]        Tax clearance from the Local Treasurer's Office
[  ]        Affidavit of the transferor and transferee stating that the subject
property has no pending case with the DARAB, DAR, Office of the
President, or any court
[  ]        Affidavit of the transferee that he/she and spouse have a total
landholding inclusive of the land to be acquired of not more than three
(3) hectares
[  ]        Certified copy of the Income Tax Return of the Transferee duly
received by the BIR for the tax year immediately preceding the date of
the application
 [  ]        The Residence Certificate of the Transferee
[  ]        Certification by the Municipal/City/or Provincial Assessor's
Office stating the aggregate agricultural landholding owned by the
transferee
TRANSFERS MADE BY THE LANDOWNER
Common requirements:
[  ]        Affidavit of the transferee that he/she and spouse have a total
landholding inclusive of the land to be acquired of not more than five (5)
hectares if he/she is a non-beneficiary and three (3) hectares if
beneficiary
[  ]        Proof of service that the BARC has been furnished a copy of the
affidavit of the transferee; or proof that the affidavit is attached to the
copy of the Register of Deeds
[  ]        MARO's report on the conduct of the field investigation whether
or not the subject land is tenanted by a person other than the transferee
[  ]        Certification by the Provincial Assessor's/City Assessor's Office
stating the landholding owned by the transferee
[  ]        Affidavit of transferor stating that the land subject of deed is a
retention or portion of the retention area
[  ]        Certification from MARO determining the accuracy/truth of the
instrument/deed and affidavit.
If the transferee is the government or the LBP:
[  ]        Waiver/Voluntary surrender of land executed by the FB in favor
of the government
[  ]        Any deed/document showing transfer of ownership
III.       JURISDICTION
A case questioning the denial of an application for a transfer of agricultural
land is an ALI case. Original jurisdiction of ALI cases is vested with the
Regional Director (RD).
IV.       STANDING
The application for clearance must be filed by:
1.         The farmer beneficiary or the land owner;
2.         their heirs; OR
3.         their authorized representatives.
V.        TIMELINESS
The application for a clearance generally has no prescription period.
The denial of the request for issuance of DAR clearance for transfer
under A.O. No. 1 Series of 1989 (rules of transfer of agricultural landholdings
in general) may give rise to a cause of action for an ALI case on the part of the
aggrieved party. Nothing in the said A.O. states a prescription period for the
 filing of the ALI case, but a party should be subjected to the general principles
of laches.
The denial of the request for the issuance of a DAR clearance for transfer
under A.O. No. 8, Series of 1995 (transfer of awarded lands) may be appealed
to the Office of the Secretary through the BALA within fifteen (15) days.
VI.       DECISION
I.          FOR IMMEDIATE DISMISSAL
A.        Dismissed due to lack of cause of action
            (Basis: II (3) of A.O. No. 1, Series of 1989)
            If
the transfer is to be effected through any of the following means,
the case must be dismissed on the ground that no prior clearance from
DAR is necessary:
a.         Deed of extra-judicial partition of the property of a
deceased who died prior to 15 June 1988;
b.         Deed of partition of property owned in common by co-
owners prior to 15 June 1988;
c.         Subdivision of title without change of ownership;
d.         Deed of real estate mortgage signed by the original
landowner or beneficiary.
B.        Dismissed due to transfer being void
            (Basis: A.O. No. 1, Series of 1989)
            If
sale, transfer, or conveyance change the nature of the land outside of
urban centers and city limits either in whole or in part after 15 June 1988,
except as provided under the rules of conversion, then dismiss it on the ground
that the transfer is void.
II.         LANDS AWARDED TO BENEFICIARIES
A.        Lands covered by a CLT, regardless of the date it was
transferred, and Lands Awarded through an EP which is Transferred
prior to 1 July 2009
(Basis: P.D. No. 27; A.O. No. 08, Series of 1995; and Estate of the Late
Encarnacion Vda. De Panlilio, represented by George Lizares vs.
Gonzalo Dizon, et al., G.R. No. 148777, October 18, 2007)
Approve only if the following elements exist:
1.         The owner-transferor is a farmer-tenant-beneficiary awarded
either a CLT or an EP by the DAR pursuant to P.D. No. 27; and
2.         The transferee is:
a.         the government; or
b.         an heir of the owner-transferor.
If it is the heir of the owner-transferor, the following other elements must
ALSO exist:
1.         in case the farmholding is covered by a CLT:
a.         the owner-transferor has passed away;
b.         the transferee is a compulsory heir of the deceased;
c.         the transferee is willing to maintain the productivity of the
land;
d.         the transferee will not own more than an aggregate area of 3
hectares of agricultural land after the transfer;
e.         the transferee is not an original beneficiary who has
previously disposed of his/her landholding;
f.          the transferee has the following qualifications:
i.          a full-fledged member of a duly recognized
farmers' cooperative;
ii.         capable of personally cultivating the
farmholding; and
iii.       willing to assume the obligations and
responsibilities of a tenant-beneficiary; AND
g.         the transferee is:
i.          chosen by the owner-transferor in a will;
ii.         the sole heir and has executed an affidavit of
adjudication;
iii.       has been designated to succeed to the land
through an extra-judicial settlement and/or waiver of
rights;
iv.        has been chosen by the other heirs within one
month from the death of the tenant-beneficiary; or
v.         has the highest priority to succeed the land
pursuant to M.C. No. 19, Series of 1978, the priority
list being:
—        spouse
—        eldest heir
2.         in case the farmholding is covered by an EP:
a.         the owner-transferor has passed away;
b.         the transferee is willing to maintain the productivity of the
land;
c.         the transferee will not own more than an aggregate area of 3
hectares of agricultural land after the transfer;
d.         the transferee is not an original beneficiary who has
previously disposed of his/her landholding; and
 e.         the transferee has succeeded to the farmholding by extra-
judicial settlement or by a decision of an estate court.
B.        Lands Awarded through a CLOA, regardless of the date it was
transferred, and Lands Awarded through an EP which is Transferred on or
after 1 July 2009
(Basis: R.A. No. 6657; and A.O. No. 08, Series of 1995)
SCENARIO #1: The CLOA/EP has been issued LESS THAN 10 years
prior to the transfer; OR The CLOA/EP has been issued 10 years or more
prior to the transfer, but the beneficiary has yet to fully pay the entire
amortization.
Approve only if the following elements exist:
1.         The owner-transferor is a farmer-beneficiary awarded a
CLOA/EP by the DAR pursuant to R.A. No. 6657; and
2.         The transferee is:
a.         the government or the LBP;
b.         an heir of the owner-transferor; or
c.         other qualified beneficiary.
If it is the heir of the owner-transferor, the following other elements must
ALSO exist:
1.         the owner-transferor has passed away;
2.         the transferee is willing to maintain the productivity of the land;
3.         the transferee will not own more than an aggregate area of 3
hectares of agricultural land;
4.         the transferee is not an original beneficiary who has previously
disposed of his/her landholding; and
5.         the transferee has succeeded to the farmholding by extra-judicial
settlement or by a decision of an estate court.
If it is the other qualified beneficiary, the following other elements must
ALSO exist:
1.         the transferee is willing to maintain the productivity of the land;
2.         the transferee will not own more than an aggregate area of 3
hectares of agricultural land after the transfer; and
3.         the transferee is not an original beneficiary who has previously
disposed of his/her landholding.
SCENARIO #2: The CLOA/EP has been issued 10 years or more prior
to the transfer and the full amortization has already been paid.
Approve only if the following elements exist:
1.         The owner-transferor is a farmer-beneficiary awarded a
CLOA/EP by the DAR pursuant to R.A. No. 6657;
 2.         The transfer is valid under civil law (this includes a valid
hereditary succession); and
3.         The transferee will not own more than an aggregate area of 5
hectares of agricultural land after the transfer.
III.       LANDS RETAINED BY LANDOWNERS
(Basis: A.O. No. 1, Series of 1989; DOJ Opinion 41, Series of 1992; A.O. No.
5, Series of 2006)
SCENARIO #1: The land was transferred prior to 15 June 1988.
A.        If the transferee is the DAR
Approve only if the following elements exist:
1.         The transferor is the landowner; and
2.         The land is transferred for the purposes of agrarian reform.
B.        If the transferee is NOT the DAR
Approve only if the following elements exist:
1.         The transferor is the only landowner;
2.         The land being transferred is the land retained by the landowner
pursuant to his/her/its retention rights;
3.         The transferee's total landholding after acquiring the land at issue
shall not exceed 5 hectares; and
4.         The transfer is registered with the Registry of Deeds on or before
13 September 1989.
SCENARIO #2: The land was transferred on or after 15 June 1988.
Approve only if the following elements exist:
1.         The transferor is the landowner;
2.         The land being transferred is the land retained by the landowner
pursuant to his/her/its retention rights; and
3.         The transferee's total landholding after acquiring the land at issue
shall not exceed 5 hectares — those exceeding 5 hectares shall be
deemed void and thus may not be approved.
VII.      APPEALS
Appeal of the findings/order of the Regional Office shall be made to the Office
of the Secretary. Notice of appeal is submitted to the Regional Office and the
Appeal Brief with BALA.
VIII.     APPLICABLE PRINCIPLES, LAWS, RULES, POLICIES,
JURISPRUDENCE
1.         GUIDING PRINCIPLES
1.         The Constitution provides that: "The State shall, by law,
undertake an agrarian reform program founded on the right of farmers
and regular farmworkers, who are landless, to own directly, or
 collectively the lands they till, or in the case of farmworkers, to receive a
just share of the fruits thereof." (Article XIII, Section 4, 1987
Constitution).
2.         The objective of this mandate of the Constitution as embodied in
our agrarian laws and regulations, is to give ownership, possession and
use of the awarded land to farmers and farmworkers in order that they
may actually cultivate the land with the end goal of improving their
standard of living.
3.         Our agrarian laws prescribe the rules as regards the
transfer/conveyance of land covered by our agrarian laws.
4.         Under PD 27, title to the land acquired pursuant thereto shall not
be transferable except by hereditary succession or to the government in
accordance with the provisions of agrarian laws and regulations. On the
other hand, R.A. 6657, as amended by R.A. 9700 prescribes that lands
acquired by beneficiaries under the law other agrarian reform laws shall
not be sold, transferred or conveyed except through hereditary
succession, or to the government, or to the LBP, or to other qualified
beneficiaries through DAR for a period of ten (10) years. Furthermore
the R.A. 6657, as amended, states that 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/herself.
2.         LEGAL PROVISIONS
a.         R.A. 6657, as amended by R.A. 9700
(1)       Section 6
SEC. 6.         Retention Limits. — Except as otherwise provided in this
Act, no person may own or retain, directly, any public or private
agricultural land, the size of which shall vary according to factors
governing a viable family-sized farm, such as commodity produced,
terrain, infrastructure, and soil fertility as determined by the Presidential
Agrarian Reform Council (PARC) created hereunder, but in no case
shall the retention by the landowner exceed five (5) hectares. Three (3)
hectares may be awarded to each child of the landowner, subject to the
following qualifications: (1) that he is at least fifteen (15) years of age;
and (2) that he is actually tilling the land or directly managing the
farm: Provided, That landowners whose lands have been covered by
Presidential Decree No. 27 shall be allowed to keep the area originally
retained by them thereunder; Provided, further, That original homestead
grantees or direct compulsory heirs who still own the original homestead
at the time of the approval of this Act shall retain the same areas as long
as they continue to cultivate said homestead.
The right to choose the area to be retained, which shall be compact or
contiguous, shall pertain, to the landowner: Provided, however, That in
case the area selected for retention by the landowner is tenanted, the
tenant shall have the option to choose whether to remain therein or be a
beneficiary in the same or another agricultural land with similar or
comparable features. In case the tenant chooses to remain in the retained
area, he shall be considered a leaseholder and shall lose his right to be a
 beneficiary under this Act. In case the tenant chooses to be a beneficiary
in another agricultural land, he loses his right as a leaseholder to the land
retained by the landowner. The tenant must exercise this option within a
period of one (1) year from the time the landowner manifests his choice
of the area for retention.
In all cases, the security of tenure of the farmers or farm workers on the
land prior to the approval of this Act shall be respected.
Upon the effectivity of this Act, any sale, disposition, lease, management
contract or transfer of possession of private lands executed by the
original landowner in violation of this Act shall be null and void:
Provided, however, That those executed prior to this Act shall be valid
only when registered with the Register of Deeds within a period of three
(3) months after the effectivity of this Act. Thereafter, all Registers of
Deeds shall inform the DAR within thirty (30) days of any transaction
involving agricultural lands in excess of five (5) hectares.
(2)       Section 27
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.] — included by R.A. 9700, effective starting 1 July 2009.

If the land has not yet been fully paid by the beneficiary, the right 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.
(3)       Section 70
SEC. 70.       Disposition of Private Agricultural Lands. — The sale or
disposition of agricultural lands retained by a landowner as a
consequence of Section 6 hereof shall be valid as long as the total
 landholdings that shall be owned by the transferee thereof inclusive of
the land to be acquired shall not exceed the landholdings ceilings
provided for in this Act. Any sale or disposition of agricultural lands
after the effectivity of this Act found to be contrary to the provisions
hereof shall be null and void. Transferees of agricultural lands shall
furnish the appropriate Register of Deeds and the BARC with an
affidavit attesting that his total landholdings as a result of the said
acquisition do not exceed the landholding ceiling. The Register of Deeds
shall not register the transfer of any agricultural land without the
submission of this sworn statement together with proof of service of a
copy thereof to the BARC.
(4)       Section 73
SEC. 73.       Prohibited Acts and Omissions. — The following are
prohibited:
(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.
xxx                    xxx                    xxx
b.         PD 27
"xxx                    xxx                    xxx
No title to the land owned by the tenant-farmers under this Decree
shall be actually issued to tenant-farmer unless and until the
tenant-farmer has become full-fledged member of a duly
recognized farmer's cooperative;
Title to land acquired pursuant to this Decree or the Land Reform
Program of the Government shall not be transferable except by
hereditary succession or to the Government  in accordance with
the provisions of this Decree, the Code of Agrarian Reforms and
other existing laws and regulations.
xxx                    xxx                    xxx"
c.         EO 228, Section 6
SEC. 6.         The total costs of the land including interest at the
rate of six percent (6%) per annum with a two percent (2%)
interest rebate for amortizations paid on time, shall be paid by the
farmer-beneficiary or his heirs to the Land Bank over a period up
to twenty (20) years in twenty (20) equal annual amortizations.
Lands already valued and financed by the Land Bank are likewise
extended a 20-year period of payment of twenty (20) equal annual
amortizations. However, the farmer-beneficiary if he so elects,
may pay in full before the twentieth year or may request the Land
Bank to structure a repayment period of less than twenty (20)
years if the amount to be financed and the corresponding annual
obligations are well within the farmer's capacity to
meet. Ownership of lands acquired by the farmer-beneficiary may
be transferred after full payment of amortizations.
3.         IMPLEMENTING RULES AND REGULATIONS
a.         MC 19, Series of 1978 (effective September 12, 1978 onwards);
 b.         AO 1, Series of 1989 (effective January 1989 onwards);
c.         DOJ 41, Series of 1992 (effective April 2, 1992);
d.         AO 8, Series of 1995 (effective January 5, 1996 onwards);
e.         AO 5, Series of 2006 (effective June 10, 2006 onwards);
4.         JURISPRUDENCE
Estate of the Late Encarnacion Vda. De Panlilio, represented by George
Lizares vs. Gonzalo Dizon, et al., G.R. No. 148777, October 18, 2007
(Note that the case of  Estate of Vda. De Panlilio vs. Dizon, at least with
respect to Transfer Action, has already been supplanted by Section 12
of R.A. No. 9700 which amended Section 27 of R.A. No. 6657. The law,
however, only applies to transfers made after 1 July 2009.)
 
"Sixth Issue: Subsequent transfers valid only to qualified farmer-beneficiaries

EO 228 not inconsistent with PD 27 on prohibition of transfers

The prohibition in PD 27, the Tenants Emancipation Decree, which took effect on
October 21, 1972, states that [t]itle to land acquired pursuant to this Decree or the
Land Reform Program of the Government shall not be transferable except by
hereditary succession or to the Government  in accordance with the provisions of this
Decree, the Code of Agrarian Reforms and other existing laws and regulations.
Hereditary succession means 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 means the DAR through the Land Bank of
the Philippines which has superior lien by virtue of mortgages in its favor.
Thus, 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.
On the other hand, Sec. 6 of EO 228 provides, thus:
Sec. 6.          The total cost of the land including interest at the rate of six percent
(6%) per annum with a two percent (2%) interest rebate for amortizations paid on
times, shall be paid by the farmer-beneficiary or his heirs to the Land Bank over a
period of up to twenty (20) years in twenty (20) equal annual amortizations. Lands
already valued and financed by Land Bank are likewise extended a 20-year period of
payment of twenty (20) equal annual amortizations. However, the farmer-beneficiary
if he so elects, may pay in full before the twentieth year or may request the Land
Bank to structure a repayment period of less than twenty (20) years if the amount to
amount to be financed and the corresponding annual obligations are well within the
farmers' capacity to meet. Ownership of lands acquired by farmer-beneficiary may
be transferred after full payment of amortizations.
xxx                    xxx                    xxx
(T)he 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. 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. 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. Third, implied repeals are not favored. A perusal of
the aforequoted Sec. 6 of EO 228 readily reveals that it confers upon the beneficiary
the privilege of paying the value of the land on a twenty (20)-year annual
amortization plan at six percent (6%) interest per annum. He may elect to pay in full
the installments or have the payment plan restructured. Said provision concludes by
saying that after full payment, ownership of the land may already be
transferred. Thus, it is plain to see that Sec. 6 principally deals with payment of
amortization and not on who qualify as legal transferees of lands acquired under PD
27. Since there is no incompatibility between PD 27 and EO 228 on the qualified
transferees of land acquired under PD 27, ergo, the lands acquired under said law
can only be transferred to the heirs of the beneficiary or to the Government for
eventual transfer to qualified beneficiaries by the DAR pursuant to the explicit
proscription in PD 27. (Emphasis supplied).
Thus, the alleged transfers made by private respondents in G.R. No. 148777 of lands
acquired under PD 27 to non-qualified persons are illegal and null and void."
POLICY RECOMMENDATIONS
1.         Under VI 2C 1b (4):
Issuance of MC as to period of MARO to give certification (FB selection)
2.         Under VI 2B 1:
Issuance of an AO on the application of Estate of the Late Encarnacion Vda.
De Panlilio, represented by George Lizares vs. Gonzalo Dizon, et al., (G.R.
No. 148777, October 18, 2007) vis a vis AO 8, Series of 1995.
Note: While PD 27 and the above-cited case state that lands covered under PD
27 and EO 228 can only be transferred to the heirs of the original beneficiary
and to the government, it appears that AO 8 Series of 1995 allows transfer of
land to others.
AO 8, Series of 1995 however states that:
a.         Lands awarded to ARBs pursuant to either PD No. 27 or R.A. 6657
may be transferred and registered only after the issuance of a DAR
clearance;
b.         It shall be understood that although the transfer of awarded land is
allowed, the productivity of the subject land be maintained and any
change in the nature of its use shall not be allowed except with the
approval of the DAR under its rules on conversion or exemption.
xxx                    xxx                    xxx
c.         Transfer of awarded lands under PD 27, as amended by EO No.
228 and R.A. 6657 may be allowed, provided the following shall
be observed:
 a.         that the productivity of the land shall be maintained;
b.         that the buyer will not exceed the aggregate landowner
ceiling provided by law; and
c.         that the ownership ceiling of 5 hectares shall be imposed.
d.         If awardee was identified as tenant as of 21 October 1972 and
amortizations were fully paid, transfer of awarded lands by the
original tenant or his heirs may be allowed, regardless of date of
issuance of EP (PD 27, as amended by EO No. 228)
e.         If the land was identified as tenanted after 1972, the transfer may
be allowed only after the lapse of 10 years from the date of
recognition of the tenants as stated in the Order of Placement
issued pursuant to DAR Memorandum Circular No. 2, Series of
1978 (PD No. 27, as amended by EO No. 228)
f.          If awardee is a transfer action reallocate pursuant to an Order of
Reallocation, transfer may be allowed provided ten (10) years have
elapsed from the date of recognition of the reallocate as stated in
the final Order of Reallocation issued by the Regional Director
(RD)/DAR Secretary. However, transfer to a reallocate by virtue of
succession by an heir shall not be subject to the ten (10) year
period prohibition (PD 27, as amended by EO 228 and R.A. No.
6657)
            TCT shall be issued by the LRA for lands transferred by an
awardee to a transferee (PD No. 27, as amended by EO No. 228)
3.         Under VI 2B 2:
-           Review of MC 19, Series of 1978, as regards transfer of land to
heirs under PD 27.
-           Based on the discussion of the group, choosing of one heir to
succeed FBs under PD 27 may create tension among the heirs and the
rule may bring more harm than good.
-           It was suggested that the Civil Code rules on succession be
applied instead.