retention right template

7/23/2019 Retention Right Template

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RETENTION RIGHT TEMPLATE

I. INTRODUCTION

This template shall apply to issues and cases pertaining to the retention rights of

landowners (LOs.

II. C!"C#LI$T O% DOCU&"NT'R R")UIR"&"NT$

*. %or landowners who own lands of fi+e (, hectares or less re-uesting for the

issuance of a Certification of Retention

/0 C'R12L'D %orm No. *3 (Re-uest for Certification of Retention

/0 Landowner4s (LO affida+it of sole and aggregate ownership of

agricultural land nationwide

/0 Certification of 1ro+incial and &unicipal5City 'ssessors regarding

LO4s aggregate land ownership

6. %or landowners whose lands consist of more than fi+e (, hectares and are

su78ect of Compulsory 'c-uisition

'. To determine if the right of retention was e9ercised on time

/0 Notice of Co+erage (NOC

/0 1roof of receipt of NOC 7y the landowner: or

/0 1u7lication of NOC

;. To determine if the applicant is the proper party to e9ercise the right of

retention

/0 Certified true copy of title5ta9 declaration of parcel of land

which is the su78ect of application for retention: and other proof of

ownership

/0 $pecial 1ower of 'ttorney and the document listed a7o+e: if

the applicant is a representati+e of the landowner

/0 'rticles of Incorporation and5or $ecretary4s Certificate of

'uthori

C. To determine the choice of area to 7e retained and other matters

/0 $?etch map of the entire property with delineation or shading

or general indication of the retained area as manifested 7y the


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landowner: or as chosen 7y the &unicipal 'grarian Reform Officer

(&'RO

/0 $worn 'pplication for Retention: indicating the following

information

@ Names of occupants of the land: their status: and the

crops growing on the property

@ Description of the parcels of land surrounding the

chosen retention area: particularly the land use: crops

culti+ated: producti+ity le+el: etc.

@ Complete list of children (if applica7le: with copies of

their 7irth certificates

@ 1re+ious land sales where the applicant was a seller or

7uyer

@ Indicate where the area to 7e retained is located.

/0 &'RO4s field +erification and in+estigation report pertaining

to information alleged in the application for retention

/0 Landowner4s affida+it of aggregate landholding nationwide

D. If the retention area was chosen 7y the &'RO due to the landowner4s

failure to timely select his retention area and there is opposition thereto: the

following documents may 7e considered

/0 Notice of Co+erage (NOC

/0 1roof of receipt of NOC 7y the landowner: or

/0 1u7lication of NOC

/0 &'RO4s field +erification and in+estigation report pertaining

to the determination of aggregate landholdings of the landowner:

description of the area chosen for retention: and identification of

occupants5tenants on the property

/0 &'RO4s notice to the landowner of his chosen retention area

and proof of receipt of such notice

3. %or untitled pri+ate agricultural lands: certification from the Department of

"n+ironment and Natural Resources Office (D"NRO (for administrati+e

confirmation of imperfect title that the titling process or proceeding has already

commenced and that there are no ad+erse claimsA or the cler? of court (for 8udicial

confirmation of imperfect title that there is a pending action 7efore the courtA

@ %or untitled land: there must 7e a showing that

i. the same forms part of aliena7le and disposa7le land of

pu7lic domainA

ii. that the one claiming ownership thereof or his

predecessors2in2interest ha+e 7een in open: continuous:

e9clusi+e and notorious occupation of the propertyA

iii. land is under bona fideclaim of ownership since Bune

*6: *=, or earlier. If later than *6 Bune *=,: the occupation

must 7e at least 3> years which must 7e counted from the time

the land is declared aliena7le and disposa7le and there must 7e

a declaration 7y the D"NR that the land is no longer intended


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for pu7lic ser+ice or de+elopment of national wealth (Republic

vs. Rizaldo: .R. No. *E6>**: &arch E: 6>**

References for this Section:

DAR Administrative Order No. 02, Series of 200and its attached S!orn

Application for Retention under Republic Act No. ""#$

DAR Administrative Order No. 02, Series of 200%and its attached forms

DAR Administrative Order No. 0$, Series of 20&&and its attached forms

III. BURI$DICTION

*. &anifestation to e9ercise the Right of Retention shall 7e filed 7efore the 1'RO.

(Section 2$,DAR Administrative Order No. 0$, Series of 20&&

6. If landowner had already e9ercised their Retention Rights: the 1'RO shall issue

Certifications of Retention. (Section ,DAR Administrative Order No. 0$, Series of 20&&

3. If landowner has an aggregate area of fi+e (, hectares or less: the 1'RO may issue

a Certification of Retention upon the former4s re-uest. (Section ,DAR Administrative

Order No. 0$, Series of 20&&

. If the su78ect of co+erage is more than fi+e (, hectares: the Regional Director (RD

shall e9ercise primary 8urisdiction o+er all agrarian law implementation ('LI cases e9cept

when a separate special rule +ests 8urisdiction in a different D'R office. (Rule '', Section $

ofDepartment of A(rarian Reform Administrative Order )DAR A.O.* No. , Series of 200

,. The $ecretary shall e9ercise appellate 8urisdiction o+er all 'LI cases: and may

delegate the resolution of the appeals to the Undersecretary. (Rule '', Sec. &0 ofDAR A.O. ,

Series of 200

IF. D"T"R&IN'TION O% T!" '11RO1RI'T" 'CTION

STEP 1: Determine the applicants standin

'. 'ny person: natural or 8uridical: who owns agricultural lands with an aggregate area

of fi+e (, hectares: more or less: and or su78ect of compulsory ac-uisition: may apply for a

retention area.

@ If a 8uridical person: chec? the secretary4s certificate or other proof of its

capacity to apply for a retention area

G If there is none: deny the application for retention.

G If there is: proceed with the application.

@ If co2owners: or heirs to an unsettled "state of an LO: chec? if there is a 8oint

application e9ecuted 7y all of them: with an agreement regarding the retention area of

each of the said co2owners or heirs

G If yes: the retention area will 7e confined to the portion of the

property allotted to him.

G $u78ect to the limitation under $ection 3E of '.O. No. >E:

$eries of 6>**which pro+ides that heirs of deceased LOs who died

after *, Bune *=HH are only entitled to the fi+e (, hectare retention

area of the deceased LO.

In case one or more of the co2owners or heirs refuses or fails to 8oin with the

others in the application

G The rest of the co2owners or heirs may not choose a retention

area unless they ha+e partitioned their co2ownership or the "state:

whiche+er is applica7le.
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G $ome or all of the co2owners or heirs may file: together with

their manifestation to e9ercise their right of retention: a manifestation

to partition their co2ownership or the "state.

@ If married: determine the property regime 7etween the spouse

G %or marriages co+ered 7y the Con8ugal 1roperty of ains

Regime

$pouses whose agricultural lands are entirely con8ugal

in nature may retain a total of not more than fi+e (, hectares

of such properties.

!owe+er: if either or 7oth of them are LOs in their own

respecti+e rights (capital and5or paraphernal: they may each

retain not more than fi+e (, hectares of their respecti+e

landholdings.

In no case shall the total retention area of such couple

e9ceed ten (*> hectares.

G %or marriages co+ered 7y the '7solute Community of 1roperty

Regime

The spouses: together: may retain not more than fi+e

(, hectares.

'll properties (capital: paraphernal: and con8ugal shall

7e considered to 7e held in a7solute community: i.e.: the

ownership relationship is one: and: therefore: only a total area

of fi+e (, hectares may 7e retained 7y the couple.

G %or marriages co+ered 7y a Complete $eparation of 1roperty

Regime

"ach of them may retain not more than fi+e (,

hectares of their respecti+e landholdings.

G The property regime of a married couple whose marriage was

cele7rated prior to >3 'ugust *=HH shall 7e presumed to 7e the

Con8ugal 1roperty of ains: unless otherwise stated in a +alid marriage

settlement.

G The property regime of those whose marriage was cele7rated

on or after >3 'ugust *=HH shall 7e presumed to 7e the '7solute

Community of 1roperty: unless otherwise stated in a +alid marriage

settlement.

Reference for this Section:DAR Administrative Order No. 0$, Series of 20&&

;. LOs !r heirs !" LOs n!t #$ali"ied t! retain lands $nder P%D% N!% &'cannot claim

retention under R.'. No. JJ,E: as amended: or e+en under R.'. No. =E>>: o+er their

landholdings that were co+ered under 1.D. No. 6E.

@ The same LOs or heirs of LOs: howe+er: may still e9ercise their right of

retention o+er other landholdings that hereafter shall 7e co+ered 7y R.'. No. JJ,E: as

amended.

Reference for this Section:DAR Administrative Order No. 0$, Series of 20&&

A land!(ner (h! e)ercised his riht !" retenti!n $nder Presidential Decree

*P%D%+ N!% &'may no longer e9ercise the same right under Repu7lic 'ct (R.'. No. JJ,E.
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@ Determine whether right of retention under1.D. No. 6Ehas already 7een

e9ercised.

G If yes: and the applicant was granted se+en (E hectares as

retention area: determine if the applicant is aware that if he opts to

retain fi+e (, hectares of the properties co+ered under C'R1: he will

lose the se+en (E2hectare retention area granted to him under 1.D. No.

6E. 1roceed with the application.

G If his landholding was co+ered under OLT 7ut he has not yet

e9ercised his right of retention: determine if the applicant4s actions are

7arred 7y laches or if he is dis-ualified under Letter of Instruction

(LOI No. E (OLT.

If yes in either circumstance: deny the application for

retention.

Otherwise: proceed with the application.

C. ' landowner: who owns fi+e (, hectares or less of land which is not su78ect of

C'R1 co+erage 7ased on the schedule of L'D phasing in $ection E of R.'. No. JJ,E:may

also file an application for retention. ' Certificate of Retention will 7e issued in his fa+or.

D. If owner of landholdings co+ered 7y homestead grants and free patents issued

pursuant to Commonwealth 'ct (C.'. No. **or an heir or heirs of said grantee: proceed

with the application: as long as the said persons were culti+ating the said landholdings and

continue to culti+ate the same.

". If deceased landowner died after *, Bune *=HH: heirs are only entitled to the fi+e (,

hectare retention of the deceased landowner.

If the deceased landowner died 7efore *, Bune *=HH and the NOC was sent after his

death: each of his compulsory heirs is entitled to a ma9imum of fi+e (, hectares as retention

area.

The right of retention of a deceased landowner may 7e e9ercised 7y his heirs

pro+ided that the decedent landowner: during his lifetime: manifested his intention to

e9ercise his right of retention prior to 63 'ugust *==> (the finality of the $upreme

Court ruling in the case ofAssociation of Small +ando!ners in the hilippines, 'nc.

vs. -he onorable Secretar/ of A(rarian ReformA .R. No. EHE6: * Buly *=H=.

@ Determine if the heir4s predecessor2in2interest manifested an intention to

e9ercise the right of retention under R.'. No. JJ,Eprior to 63 'ugust *==>.

G If he did not: deny the application.

G If yes: proceed with the application for retention.

Reference for this Section:

Section ofDAR Administrative Order No. 02, Series of 200

Section $ ofDAR Administrative Order No. 0$, Series of 20&&

NOT" In all cases: if there are CLO'5"1 holders o+er the land su78ect of the petition for

retention: they must 7e personally notified and must 7e as?ed to comment on the petition.

STEP & : Determine the m!de !" land ac#$isiti!n

'. If ac-uired through Compulsory 'c-uisition (C': proceed with the application if

application was filed within the reglamentary period pursuant to the applica7le '.O. at the

time when the NOC was issued.

Note Ta?e into consideration the date of receipt of NOC or date of its pu7lication.
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;. If ac-uired through Foluntary Offer to $ell (FO$: chec? if the landowner e9ercised

his right of retention and right to nominate children as preferred 7eneficiary5ies thereof to

the 1'RO prior to the completion of $er+ice of Letter of 'cceptance.

G If not: deny the application for retention.

G If yes: proceed with the application.

%or FO$ lands su7mitted prior to * Buly 6>>= where the master list of 'R;s has

7een finali


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@ The law pro+ides for an automatic e9clusion from co+erage: hence there is no

need to file an application for retention.

@ In any case: the landowner may opt to re-uest for the issuance of a

Certification of Retention from the 1'RO.

;. %or lands of more than fi+e (, hectares

@ 'll pri+ate agricultural lands co+ered under $ection of R.'. No. JJ,E: as

amended: 7ut which ha+e not 7een issued Notices of Co+erage (NOCsA and pri+ate

agricultural lands issued with NOCs 7ut where the list of potential 7eneficiaries has

not 7een finali>= (Section &,DAR Administrative Order No. 0$, Series of 20&&

G ithin a non2e9tendi7le period of thirty (3> days from

his5her5its5their receipt of the NOC: the LO may file a &anifestation to

"9ercise the Right of Retention 7efore the 1'RO.

'll manifestations made after this period shall no

longer 7e accepted.

%ailure to file said &anifestation within the

reglementary period shall 7e construed as a wai+er on the part

of the landowner of the right to e9ercise the right of retention.

(Section 2$,DAR Administrative Order No. 0$, Series of 20&&

G %or landholdings under FO$: the landowner shall e9ercise his

right of retention 7y su7mitting a notari


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Reference for this Section:DAR Administrative Order No. 02, Series of 20&&

NOT" The thirty (3>2day period shall 7e used for cases where the applica7le

issuance isDAR A.O. No. 02, Series of 200%: which too? effect on >* Buly 6>>=. %or other

cases prior to the said '.O.4s effecti+ity: a si9ty (J>2day period shall 7e used: as pro+ided

for inDAR A.O. No. 02, Series of 200:which too? effect on >E %e7ruary 6>>3.

STEP - : E.al$ate the retained area /ein applied "!r

%actors to 7e considered in granting the choice of retained area

'. The landowner: as a general rule: has the right to choose the area to 7e retained.

;. The retained area must 7e compact and contiguous.

@ In case of a co2ownership or an unsettled "state mentioned in $ection 3> of

'.O. No. >E: $eries of 6>**: each co2owner or heir may choose an area not

contiguous with that chosen 7y his5her5its co2owner5co2heir: pro+ided: that if it is the

&'RO who shall choose the retention area on their 7ehalf: the retention area of all

co2owners5co2heirs must: as far as practica7le: 7e compact and contiguous with each

other.

@ Original homestead grantees under the !omestead 'ct or their direct

compulsory heirs who still own the original homestead at the time R.'. No. JJ,E

too? effect: may retain the same area as long as they continue to culti+ate the land.

C. If there e9ists a wai+er of the right to choose the retained area: the &'RO must

select a parcel of land in such a way that it would 7e least pre8udicial to the entire

landholding and the ma8ority of the farmers on the property. The &'RO shall consider the

following factors in choosing the retained area (a commodity produced: (7 terrain: (c

a+aila7le infrastructure and (d soil fertility.

D. The retained area must not e9ceed fi+e (, hectares.

@ The fi+e (,2hectare retention limit applies to all lands regardless of how

ac-uired (i.e.7y purchase: award: succession: donation as the law does not

distinguish.

Sample 'llustration

' child of the landowner who was awarded three (3 hectares as preferred

7eneficiary and who su7se-uently ac-uired a fi+e (,2hectare landholding of his parent

through succession: can retain only fi+e (, hectares of the total landholding.

@ "MC"1T

i. The application for retention in+ol+es property co+ered under

OLT and was filed 7efore 6E 'ugust *=H,: in which case the

landowner will 7e entitled to se+en (E hectares of retained area.

ii. The application for retention in+ol+es property co+ered under

OLT: was filed after 6E 'ugust *=H,: and the landowner complied with

LOI Nos.*:,: and ,6: in which case he will also 7e entitled to se+en

(E hectares of retained area.

iii. The spouses: if either or 7oth of them are LOs in their own

respecti+e rights (capital and5or paraphernal: they may each retain not

more than fi+e (, hectares of their respecti+e landholdings. In no case

shall the total retention area of such couple e9ceed ten (*> hectares.
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i+. %or marriages co+ered 7y a Complete $eparation of 1roperty

Regime: each of them may retain not more than fi+e (, hectares of

their respecti+e landholdings.

". Retention will not 7e granted at this stage if

@ The applicant committed acts which constitute a wai+er of the right to retain:

such as in the following circumstances

i. "9ecuting an affida+it: letter or any document duly attested to

7y the &'RO: 1ro+incial 'grarian Reform Officer (1'RO: or RD

indicating that the landowner is e9pressly wai+ing his retention right

o+er the su78ect landholding.

ii. $igning of the Landowner2Tenant 1roduction 'greement and

%armer4s Underta?ing (LT1'2%U or 'pplication to 1urchase and

%armer4s Underta?ing ('1%U co+ering the su78ect property.

iii. "ntering into a Foluntary Land Transfer5Direct 1ayment

$cheme (FLT2D1$ agreement as e+idenced 7y a Deed of Transfer

o+er the su78ect property.

i+. Offering the su78ect landholding under FO$ scheme and failure

to indicate his retained area.

+. $igning5su7mission of other documents indicating consent to

ha+e the entire property co+ered: such as the form letter of the Land

;an? of the 1hilippines (L;1 on the disposition of the cash and 7ond

portions of a land transfer claim for payment: and the Deed of

'ssignment: warranties and underta?ing e9ecuted in fa+or of the L;1.

+i. 1erforming acts which constitute estoppel 7y laches.

+ii. Doing such act or acts as would amount to a +alid wai+er in

accordance with applica7le laws and 8urisprudence.


DAR Administrative Order No. 0#, Series of 2000

DAR Administrative Order No. 0$, Series of 20&&

@ The property was co+ered under OLT: the applicant would not 7e -ualified to

retain 7ecause of the pro+isions in LOI No. E: and he is now opting to e9ercise his

right of retention under R.'. No. JJ,E.

%. If there are tenants on the retained area

@ ithin a period of one (* year from the time the LO manifests his5her choice

of the area for retention: the tenant must e9ercise the option whether to

G Choose to remain in the LO4s retained areaA or

G Choose to 7e a 7eneficiary in another agricultural land.

@ In case a tenant chooses to remain in the LO4s retained area

G !e5she shall 7e a leaseholder in the said land and shall not

-ualify as a 7eneficiary under C'R1

@ Con+ersely: if the tenant chooses to 7e a 7eneficiary in another agricultural

land

G !e5she cannot 7e a leaseholder in the land retained 7y the LO

G !e5she shall 7e gi+en preference in other landholdings whether

or not these lands 7elong to the same LO: without pre8udice to the
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farmers who are already in place in said other landholdings and su78ect

to the priorities under $ection 66 of R.'. No. JJ,E: as amended.

@ In all cases: the security of tenure of the farmers or farmwor?ers on the LO4s

retained land prior to the appro+al of R.'. No. JJ,E: as amended: shall 7e respected.

%urther: actual tenant2farmers in the landholdings shall not 7e e8ected or remo+ed

therefrom.


DAR Administrative Order No. 02, Series of 200


F. OT!"R CIRCU&$T'NC"$ $URROUNDIN T!" "M"RCI$" O% R"T"NTION

RI!T$

'. D'R Clearance on Land Transactions

@ 's a general rule: the sale: disposition: lease or transfer of pri+ate lands

7y the original landowner in +iolation of R.'. No. JJ,Eshall 7e null and +oid.

@ Land transactions e9ecuted prior to *, Bune *=HH

G shall 7e +alid only when registered with the Registry of Deeds

on or 7efore *3 $eptem7er *=HH

@ Land transactions e9ecuted on or after *, Bune *=HH

G here the transfer5sale of a landholding in+ol+es a total area of

fi+e (, hectares and 7elow and such landholding is the retention area

of or su78ect of retention 7y the transferor: and where the transferee

will not own an aggregate area of more than fi+e (, hectares as a

result of the sale

The transfer is legal and proper.

!owe+er: a D'R clearance is needed for monitoring

purposes and as a re-uisite for the registration of the title in the

name of the transferee with the ROD.

G ith respect to LOs who ha+e yet to e9ercise their right of

retention: where more than fi+e (, hectares of the landholding is sold

or transferred: whether through a single transaction: multiple

transactions: or a series of transfers5sales

Only the first fi+e (, hectares sold5con+eyed and the

corresponding titles therefor issued 7y the ROD in the name of

the transferee shall 7e considered +alid and treated as the

transferor4s retained area

In no case shall the transferee e9ceed the fi+e (,2

hectare landholding ceiling pursuant to $ections J: E>: and E3

(a of R.'. No. JJ,E:as amended.

The e9cess area 7eyond the fi+e (, hectares sold and

con+eyed is concerned: the same shall 7e co+ered under

C'R1: regardless of whoe+er is the current title2holder to the

land: and e+en if the said current title2holder owns less than

fi+e (, hectares of agricultural landholding: considering that

the transferor has no right to dispose of these lands since

C'R1 co+erage of these lands is mandated 7y law as of *,
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Bune *=HH. 'ny landholding still registered in the name of the

LO after earlier dispositions up to an aggregate of fi+e (,

hectares are no longer part of his retention area and therefore

shall 7e co+ered under C'R1.

@ In cases where there has 7een an improper: in+alid: or unlawful

transfer

G NOC shall 7e sent to the last lawful owner of the landholding

and to such person who is registered as the owner of the same

G Co+erage shall 7e done in accordance with the pertinent

guidelines on the matter.

@ The pro+isions of LOI No. Ealso apply to landowners whose

properties were co+ered under OLT 7ut who e9ercised their right of retention

under R.'. No. JJ,E(Re/es vs. arilao: .R. No. *3JJJ: 6, No+em7er

6>>=.

References for this Section:

art '3.4. Section $ ofDAR Administrative Order No. 02, Series of 200%.

Article '' ofDAR Administrative Order No. 02, Series of 200.

4acu5(an, A(rarian +a! and 6urisprudence, 2000.


;. Conditions for LU Retention Limit "9emption

@ C'R12co+ered agricultural lands which are to 7e e9propriated or

ac-uired 7y LUs for actual: direct: and e9clusi+e pu7lic purposes: such as

roads and 7ridges: pu7lic mar?ets: school sites: resettlement sites: local

go+ernment facilities: pu7lic par?s: and baran(a/pla


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G In cases where the land sought to 7e ac-uired has 7een issued

with an NOC or is already su78ect to FO$ (with a letter2offer

su7mitted to D'R

the concerned LU shall suspend the e9ercise of its

power of eminent domain until after the L'D process has 7een

completed and the title to the property has 7een transferred to

the 'R;s.

@ here agricultural lands ha+e 7een su78ected to e9propriation: the

'R;s therein shall 7e paid 8ust compensation.

References for this Section: Section 2,DAR Administrative Order No.

0$, Series of 20&&

D. R%A% N!% 1-33 !r the Land Re"!rm Act !" 14: which deals with the

ac-uisition and distri7ution of landed estates: pro+ides for a retention area of three

hundred (3>> hectares of contiguous land if owned 7y natural persons and si9

hundred (J>> hectares if owned 7y corporations. "9empt from this rule are lands

where 8ustified agrarian unrest e9isted.

@ $ome cases under R.'. No. *>>

G InRepublic of the hilippines vs. 7ariano +ichauco, et al.

(.R. No. L26*3J: *H 'ugust *=E6: the Land Tenure 'dministration

(LT' and the landowners merely e9ecuted an 'greement and Boint

&otion where the LT' granted retention areas to the co2owners K one

co2owner: for instance: was gi+en a retention area of *.*= hectares

and another: ,.,3E, hectares.

G $ince R.'. No. *>>did not specify who was to choose the

retained area: it was held that the landowner and the Land Tenure

'dministration were e9pected to try to reach an agreement on the

choice of retained area. In the e+ent of disagreement: the courts of

8ustice would settle the issue (+and -enure Administration vs. 8eferino

Ascue and 9elisa Ramos De AscueA .R. No. L2*=J=: 6= 'pril *=J*.

FI. '11LIC';L" L'$: RUL"$: 'ND 1OLICI"$

'. Leal Pr!.isi!ns

i. 'rticle MIII:*=HE Constitution

$ection . The $tate shall: 7y law: underta?e an agrarian

reform program founded on the right of farmers and regular

farmwor?ers who are landless: to own directly or collecti+ely the lands

they till: or: in the case of other farmwor?ers: to recei+e a 8ust share of

the fruits thereof. To this end: the $tate shall encourage and underta?e

the 8ust distri7ution of all agricultural lands: su78ect to such priorities

and reasona7le retention limits as the Congress may prescri7e: ta?ing

into account ecological: de+elopmental: or e-uity considerations: and

su78ect to the payment of 8ust compensation. In determining retention

limits: the $tate shall respect the right of small landowners. The $tate

shall further pro+ide incenti+es for +oluntary land2sharing. (emphasis

added
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ii. Repu7lic 'ct (R.'. No. JJ,E(effecti+e *, Bune *=HH: as amended 7y

R.'. No. =E>>(effecti+e >* Buly 6>>=

$ection J. Retention +imits.K "9cept as otherwise pro+ided

in this 'ct: no person may own or retain: directly or indirectly: any

pu7lic or pri+ate agricultural land: the si days of any

transaction in+ol+ing agricultural lands in e9cess of fi+e (, hectares.

$ection J2'. Exception to Retention Limits.K

1ro+incial: city: and municipal go+ernment units ac-uiring pri+ate

agricultural lands 7y e9propriation or other modes of ac-uisition to 7e

used for actual: direct and e9clusi+e pu7lic purposes: such as roads and
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7ridges: pu7lic mar?ets: school sites: resettlement sites: local

go+ernment facilities: pu7lic par?s and 7arangay pla and E3(a of Repu7lic 'ct No. JJ,E:as amended

1ro+ided: That lands su78ect to C'R1 shall first undergo the land

ac-uisition and distri7ution process of the program 1ro+ided: further:

That when these lands ha+e 7een su78ected to e9propriation: the

agrarian reform 7eneficiaries therein shall 7e paid 8ust compensation.

$ection J2;. Review of Limits of Land Size.K ithin

si9 (J months from the effecti+ity of this 'ct: the D'R shall su7mit a

comprehensi+e study on the land si**

ii. D'R 'dministrati+e Order No. 6: $eries of 6>>=(effecti+e Buly *:

6>>=

iii. D'R 'dministrati+e Order No. 3: $eries of 6>>3(effecti+e >H

%e7ruary 6>>3

i+. D'R 'dministrati+e Order No. 6: $eries of 6>>3(effecti+e >E

%e7ruary 6>>3

+. D'R 'dministrati+e Order No. ,: $eries of 6>>>(effecti+e *E

$eptem7er 6>>>

+i. Department of 'grarian Reform (D'R 'dministrati+e Order No. :

$eries of *==*

/'ppro+al date 6J 'pril *==*. It was pro+ided for in the '.O. that the

issuance was to ta?e effect ten (*> days after pu7lication in two (6 national

newspapers of general circulation.0
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+ii. D'R 'dministrati+e Order No. **: $eries of *==>

/'ppro+al date 3> 'ugust *==>. It was pro+ided for in the '.O. that

the issuance was to ta?e effect ten (*> days after pu7lication in two (6

national newspapers of general circulation.0

FII. BURI$1RUD"NC"

'. A8'NDA +;'S'-A, 'N8ORORA-D vs. RS'DN-'A+ ARAR'AN

R9OR7 8O;N8'+ et al., .R. NO. &$&&0& NO374R 22, 20&&

The rule on retention limits does not apply to the ownership of

agricultural lands under the stoc? distri7ution scheme 7ut only to the e+entual

ac-uisition of the agricultural lands from the -ualified %;s under the

proposed 7uy27ac? scheme

orse: 7y raising that the -ualified 7eneficiaries may sell their interest

7ac? to !LI: this smac?s of outright indifference to the pro+ision on retention

limits underR' JJ,E: as this Court: in effect: would 7e allowing !LI: the

pre+ious landowner: to own more than fi+e (, hectares of agricultural land:

which e cannot countenance. There is a 7ig difference 7etween the

ownership of agricultural lands 7y !LI under the stoc? distri7ution scheme

and its e+entual ac-uisition of the agricultural lands from the -ualified %;s

under the proposed 7uy27ac? scheme. The rule on retention limits does not

apply to the former 7ut only to the latter in +iew of the fact that the stoc?

distri7ution scheme is sanctioned 7y $ec. 3* of R' JJ,E:which specifically

allows corporations to di+est a proportion of their capital stoc? that the

agricultural land: actually de+oted to agricultural acti+ities: 7ears in relation to

the company4s total assets. On the other hand: no special rules e9ist under R'

JJ,Econcerning the proposed 7uy27ac? schemeA hence: the general rules on

retention limits should apply.

;. 'RS O9 DR. 6OS D+S- vs. +AND 4AN< O9 - '+''NS

)+4*, .R. No. &"%%&, 6une 1, 20&&

i. %ailure to notify that the property shall 7e under the co+erage of the

agrarian reform program +iolates due process of lawA there must 7e proof that

petitioner was gi+en the opportunity to at least choose and identify its

retention area

%irstly: the ta?ing of su78ect property was done in +iolation of

constitutional due process. The Court of 'ppeals was correct in

pointing out that Firginia '. Roa was denied due process 7ecause the

D'R failed to send notice of the impending land reform co+erage to the

proper party. The records show that notices were erroneously addressed

and sent in the name of 1edro N. Roa who was not the owner: hence:

not the proper party in the instant case. The ownership of the property:

as can 7e gleaned from the records: pertains to Firginia '. Roa. Notice

should ha+e 7een therefore ser+ed on her: and not 1edro N. Roa.

999 999 999

In addition: the defecti+e notice sent to 1edro N. Roa was

followed 7y a D'R certification signed 7y team leader "duardo

&aandig on Banuary H: *=HH stating that the su78ect property was
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tenanted as of Octo7er 6*: *=E6 and primarily de+oted to rice and corn

despite the fact that there was no ocular inspection or any on2site fact2

finding in+estigation and report to +erify the truth of the allegations of

Nicolas Bugal7ot that he was a tenant of the property. The a7sence of

such ocular inspection or on2site fact2finding in+estigation and report

li?ewise depri+es Firginia '. Roa of her right to property through the

denial of due process.

;y analogy:Ro=as > 8o., 'nc. v. 8ourt of Appealsapplies to the

case at 7ar since there was li?ewise a +iolation of due process in the

implementation of the Comprehensi+e 'grarian Reform Law when the

petitioner was not notified of any ocular inspection and in+estigation to

7e conducted 7y the D'R 7efore ac-uisition of the property was to 7e

underta?en. Neither (as there pr!!" that petiti!ner (as i.en the

!pp!rt$nit5 t! at least ch!!se and identi"5 its retenti!n area in

th!se p!rti!ns t! /e ac#$ired. ;oth in the Comprehensi+e 'grarian

Reform Law and 1residential Decree No. 6E: the right of retention and

how this right is e9ercised: is guaranteed 7y law.

ii. Despite a finding that there was a +iolation of due process in the

implementation of the Comprehensi+e 'grarian Reform 1rogramA such

+iolation does not gi+e the Court the power to nullify the certificates of

land ownership award (CLO's already issued to the farmer2

7eneficiaries: since the D'R must 7e gi+en the chance to correct its

procedural lapses in the ac-uisition proceedings.

On this note: e ta?e e9ception to our ruling inRo=as > 8o.,

'nc. v. 8A

,where: despite a finding that there was a +iolation of due

process in the implementation of the comprehensi+e agrarian reform

program when the petitioner was not notified of any ocular inspection

and in+estigation to 7e conducted 7y the D'R 7efore ac-uiring the

property: there7y effecti+ely depri+ing petitioner the opportunity to at

least choose and identify its retention area in those portions to 7e

ac-uired: this Court nonetheless ruled that such +iolation does not gi+e

the Court the power to nullify the certificates of land ownership award

(CLO's already issued to the farmer27eneficiaries: since the D'R

must 7e gi+en the chance to correct its procedural lapses in the

ac-uisition proceedings.

C. D+ 7ON- '+''NS 'N8. 7+O?S ARAR'AN R9OR7

4N9'8'AR'S 8OORA-'3 )DAR48* vs. 6S;S SAN;NA? and SONN?

+A4;NOS, .R. NO. &100&, 6AN;AR? &, 20&&

' proper action for reco+ery of possession filed with the regular court

does not di+est the latter of its 8urisdiction e+en if there is a claim of 7eing

farmer27eneficiaries with right of retention

Ferily: all that D"'R;C prayed for was the e8ectment of the

respondents from the respecti+e portions of the su78ect lands they allegedly

entered and occupied illegally. D"'R;C a+ers that: as the owner of the
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su78ect landholding: it was in prior physical possession of the property 7ut was

depri+ed of it 7y respondents4 intrusion.

Clearly: no agrarian dispute e9ists 7etween the parties. The a7sence

of tenurial arrangements: whether leasehold: tenancy: stewardship or

otherwise: cannot 7e o+erloo?ed. In this case: no 8uridical tie of landownership

and tenancy was alleged 7etween D"'R;C and $angunay or La7unos: which

would so categori


18/22

". NAO+ON 7ANO vs. ONA+O 9RAN8'S8O and R'NA 3DA. D

+AARO, .R. NO. &"1%#%, 7AR8 2#, 20&0

Issues with respect to retention rights are within the 8urisdiction of D'R

$ecretary

Ferily: there is an esta7lished tenancy relationship 7etween petitioner

and respondents in this case. 'n action for "8ectment for Non21ayment of

lease rentals is clearly an agrarian dispute: cogni


19/22

and that the D'R was correct in awarding the landholdings to ;ari7ag: the

D'R4s cancellation of all of the respondents4 TCTs effecti+ely nullified the

respondents4 right of retention: there7y depri+ing them of their property

without due process of law.

. 'RS O9 6;AN R'CO, SR. vs. DAR-7N- O9 ARAR'AN R9OR7,

.R. NO. &"#0$, 6;N 0, 200"

here a landowner is not entitled to retain land under 1D 6E: he cannot a+ail

of the right of retention o+er the same land under R' JJ,E

. . . $tatement of the $upreme Court clearly indicates that a landowner

who failed to e9ercise his retention right of land under 1D 6Emay do so under

R' JJ,Epro+ided he is -ualified to do so under the regime of 1D 6E. $tated

differently: where a landowner is not entitled to retain land under 1D 6E: he

cannot a+ail of the right of retention o+er the same land under R' JJ,E.

!. +;8'A 7AA 3DA. D D+A 8R;, - A+., vs. AD6;-O A4'++, .R.

No. &0&%", 9ebruar/ 2", 200&

The issuance of an emancipation patent does not 7ar the landowner from

retaining the area co+ered there7y

In the case ofDaez v. 8ourt of Appeals: where the Certificates of Land

Transfer of farmer 7eneficiaries o+er some four ( hectares of riceland were

issued without the landowner ha+ing 7een accorded her right to choose what

to retain among her landholdings: we held that the Transfer Certificate of Title

issued on the 7asis of Certificates of Land Transfer issued to the farmer2

7eneficiaries cannot operate to defeat the right of the heirs of the deceased

landowner to retain the said riceland. "+en the issuance of an emancipation

patent does not 7ar the landowner from retaining the area co+ered there7y.

'dministrati+e Order No. 6: series of *==pro+ides "mancipation

patents or certificates of land ownership award issued to agrarian reform

7eneficiaries may 7e corrected and cancelled for +iolations of agrarian laws:

rules and regulations. This includes cases of lands which are found to 7e

e9empted5e9cluded from1.D. No. 6E5".O. No. 66Hof C'R1 co+erage: or part

of the landowner4s retained area.

I. ;DOS'A DA vs. - ON. 8O;R- O9 AA+S, .R. NO. $,

94R;AR? &$, 2000

i. "9emption and retention in agrarian reform are two (6 distinct

concepts K the finality of 8udgment in one does not preclude the su7se-uent

institution of the other

Thus: on one hand: e9emption from co+erage of OLT lies if (*

the land is not de+oted to rice or corn crops e+en if it is tenantedA or (6

the land is untenanted e+en though it is de+oted to rice or corn crops.

On the other hand: the re-uisites for the e9ercise 7y the

landowner of his right of retention are the following (* the land must

7e de+oted to rice or corn cropsA (6 there must 7e a system of share2

crop or lease2tenancy o7taining thereinA and (3 the si


20/22

hectares thereof are co+ered lands and more than se+en (E hectares of

it consist of other agricultural lands.

Clearly: then: the re-uisites for the grant of an application for

e9emption from co+erage of OLT and those for the grant of an

application for the e9ercise of a landowner4s right of retention: are

different.

!ence: it is incorrect to posit that an application for e9emption

and an application for retention are one and the same thing. ;eing

distinct remedies: finality of 8udgment in one does not preclude the

su7se-uent institution of the other.

ii. Right of retention may 7e e9ercised o+er tenanted land despite the

issuance of Certificate of Land Transfer (CLT to farmer27eneficiaries. hat

must 7e protected: howe+er: is the right of the tenants to opt to either stay on

the land chosen to 7e retained 7y the landowner or 7e a 7eneficiary in another

agricultural land with similar or compara7le features

In the landmar? case ofAssociation of Small +ando!ners in the

hil., 'nc. v. Secretar/ of A(rarian Reform: we held that landowners

who ha+e not yet e9ercised their retention rights under 1.D. No. 6Eare

entitled to the new retention rights under R.'. No. JJ,E.e

disregarded the 'ugust 6E: *=H, deadline imposed 7y D'R

'dministrati+e Order No. *: series of *=H,on landowners co+ered 7y

OLT. !owe+er: if a landowner filed his application for retention after

'ugust 6E: *=H, 7ut he had pre+iously filed the sworn statements

re-uired 7y LOI Nos.*:,and,6:he is still entitled to the retention

limit of se+en (E hectares under 1.D. No. 6E.Otherwise: he is only

entitled to retain fi+e (, hectares under R.'. No. JJ,E.

$ec. J ofR.'. No. JJ,E: which pro+ides: viz. . . . defines the

nature and incidents of a landowner4s right of retention. %or as long as

the area to 7e retained is compact or contiguous and it does not e9ceed

the retention ceiling of fi+e (, hectares: a landowner4s choice of the

area to 7e retained: must pre+ail. &oreo+er: 'dministrati+e Order No.

: series of *==*: which supplies the details for the e9ercise of a

landowner4s retention rights: li?ewise recogni


21/22

The issuance of "1s or CLO's to 7eneficiaries does not

a7solutely 7ar the landowner from retaining the area co+ered there7y.

Under 'dministrati+e Order No. 6: series of *==: an "1 or CLO' may

7e cancelled if the land co+ered is later found to 7e part of the

landowner4s retained area.

999 999 999

In the instant case: the CLTs of pri+ate respondents o+er the

su78ect .*JH,2hectare riceland were issued without "udosia Dae

retention right template

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