CHAPTER VII: LAND REDISTRIBUTION SECTION 22. Qualified Beneficiaries. — The lands covered by the CARP shall be distributed as much as possible to landless residents of the same barangay, or in the absence thereof, landless residents of the same municipality in the following order of priority: (a) agricultural lessees and share tenants; (b) regular farmworkers; (©) seasonal farmworkers; (a) other farmworkers; (e) actual tillers or occupants of public lands; (collectives or cooperatives of the above beneficiaries; and (g) others directly working on the land. Provided, however, That the children of landowners who are qualified under Section 6 of this Act shalll be given preference in the distribution of the land of their parents, and Provided, further, That actual tenant-tillers in the landholdings shall not be ejected or removed therefrom. Beneficiaries under Presidential Decree No. 27 who have culpably sold, disposed of, or abandoned their land are disqualified to become beneficiaries under this Program. A basic qualification of a beneficiary shall be his willingness, aptitude, and ability to cultivate and make the land as productive as possible. The DAR shall adopt a system. of monitoring the record or performance of each beneficiary, so that any beneficiary guilty of negligence or misuse of the land or any support extended to him shall forfeit his right to continue as such beneficiary. The DAR shall submit periodie reports on the performance of the beneficiaries to the PARC, fice 22. THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 8 CHAPTER VIL: LAND REDISTRIBUTION If, due to the landowner’s retention rights or to the humber of tenants, lessees, or workers on the land, there tw not enough land to accommodate any or some of them, they may be granted ownership of other lands available for distribution under this Act, at the option of the beneficiaries. Farmers already in place and those not accommodated in the distribution of privately-owned lands will be given preferential rights in the distribution of lands from the public domain. NOTES: Who Is Eligible to Become an Agrarian Reform Beneficiary? ‘To be eligible to become an agrarian reform beneficiary, a person must be a landless resident of the same barangay, or of the ume municipality. Moaning of Landiess Resident A landless resident is a farmer or tiller who owns less than three hectares of land.' It could refer to any of the following: 1) agricultural lessees and share tenants; 2) regular farmworkers; 8) seasonal farmworkers; 4) other farmworkers; 5) actual tillers or occupants of public lands; 6) collectives or cooperatives of the above beneficiaries; and 7) others directly working on the land. ‘Qualifications of an Agrarian Reform Beneficiary ‘To qualify as an agrarian reform beneficiary, the farmer {whether tenant, lessee, or worker) must be: 1) A person who owns less than three hectares of agricultural land; 1 of 1988, Section 25, ‘Comprebensive Agrarian Rofo86 AGRARIAN LAW AND SOCIAL LEGISLATION See. 22 2) A Filipino citizen; 3) Aresident of the barangay (or the municipality if there are no sufficient number of qualified Agrarian Reform Beneficiaries in the barangay); and 4) At least 15 years of age at the time of identi- fication, sereening, and selection of farmer-beneficiaries; and 5) Willing, able, and equipped with the aptitude to cultivate and make the land productive.’ Special Qualifications for Farmworkers in Commercial Farms or Plantations In addition to the aforementioned qualifications, farmworkers in commercial farms of plantations can qualify as an agrarian reform beneficiary if they were already employed as of June 15, 1988 in the landholding covered by the Comprehensive Agrarian Reform Law of 1988. Managerial Farmworkers Not Qualified to Become Beneficiary Farmworkers holding managerial (or supervisory) positions, as of June 15, 1988 are not qualified to become agrarian reform beneficiary. However, farmworkers promoted to managerial or supervisory position after they were identified, screened, and selected will remain as qualified agrarian reform beneficiaries. Who Are Disqualified to Become an Agrarian Reform Beneficiary? ‘The following tenants, lessees, or farm workers are disqualified from becoming an agrarian reform beneficiary under the agrarian reform law: 1) Those who do not meet the basic qualifications: 2) Those who have waived their right to become an agrarian reform beneficiary in exchange for compensation, *Department of Agrarian Reform Administrative Order No. 07, series of 2011, Section 43) td, at Section 43(b), a. fi. 22. ‘THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198887 ‘CHAPTER VII: LAND REDISTRIBUTION provided that the waiver has not been questioned in the proper government entity; 3) ‘Those who have not paid an aggregate of three annual amortizations; 4) ‘Those who have failed to exercise right of redemption/repurchase within two years resulting in the foreclosure of mortgage by the Land Bank of the Philippines of a previously awarded land; 5) Those who refused to pay three annual amorti- zations for land acquired through voluntary land transfer or direct payment scheme, resulting in the repossession by the landowner; 6) Those who have been dismissed for cause; 7) Those who have retired or voluntarily resigned from their employment; 8) Those who have misused the land or diverted the financial support services extended by the government; 9) Those who have misrepresented material facts in their basic qualifications; 10) Those who have sold, disposed, or abandoned the lands awarded to them by the government; 11) Those who have converted agricultural lands to nonagricultural use without prior approval of the Department of Agrarian Reform; 12) Those who have been finally adjudged guilty of forcible entry or unlawful detainer over the property; 13) Those who have violated agrarian reform laws and regulations; 14) Landowners and their children, in connection with foreclosed landholdings;* and 15) Landowners who have voluntarily offered their landholdings for coverage under the Comprehensive "Department of Agrarian Reform Administrative Order No. 07, series of 2011, Aoctions 44 and 49.jee29 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 89 % AGRARIAN LAW AND SOCIAL LEGISLATION See. 2 ete aN teat ‘AlaPiins tiem oPragrana tei -ebanathoa donkn Pata 8) actual tillers or occupants of publie lands; landholdings 4) collectives or cooperatives of the above benef ciaries; and SECTION 22-A. Order of Priority. — A landhole of ii n ’ landowner shall be distributed frst vo qualified benefci Di LRORPAE RE hash under Section 22, subparagraphs (a) and (b) of that landholding up to a maximum of three (3) hectares each. 01 when these beneficiaries have all received three (3) hectat each, shall the remaining portion of the landholding, any, be distributed to other beneficiaries under Section subparagraphs (c), (d), (e), (f), and (g)." SECTION 28. Distribution Limit. — No qualified benefi- «lary may own more than three (3) hectares of agricultural tnd. NOTES: ‘Maximum Area That Can Be Owned by or Awarded to Beneficiaries ‘The maximum agricultural land area that can be owned by ‘or awarded to an agrarian reform beneficiary is three hectares. ‘Wherefore, if a tenant or farmworker already owns two hectares of Agricultural land, he can still be awarded one hectare. NOTES: Order of Distribution As per Section 22 of the Comprehensive Agrarian Re Law of 1988, children of the landowner enjoy first preference the distribution of the landholding. Each child is entitled to t) hectares if he or she is: Hquitable Allocation As noted earlier, a covered landholding will be distributed first Wo the following: 1) agricultural lessees and share tenants; and 1) a Filipino citizen; 2) atleast 15 years old; and 3) actually tilling the land or directly managing the farm.* 2) regular farmworkers. If the land area is insufficient to meet the three-hectare Award ceiling for each agricultural lessee, tenant, or regular worker in a particular landholding, then the landholding shall divided equally among them. In a situation where the area in a ticular landholding is inadequate to provide each agricultural , tenant, or regular farmworker with land of more than 0 Square meters, said lessee, tenant, or regular farmworker Il be awarded 1,000 square meters of land taking into account uth of lease or service, as the case may be, Should an area of than 1,000 square meters be left. in the course of the award, s romaining area shalll then be distributed equally among these neficiaries who had received 1,000 square meters. After the children, the covered landholding will be distribut to the following: 1) agricultural lessees and share tenants; and 2) regular farmworkers. If the lessees, tenants and regular farmworkers have already received their three hectares, the remaining portion of the land will be distributed to: 1) seasonal farmworkers; 2) other farmworkers; "Department of Agrarian Reform Administrative Order No. 07, series of 2011, Section 48, As amended by Republic Act No, 9700. "Comprehensive Agrarian Reform Law of 1988, Section 6. "Department of Agrarian Reform Administrative Order No. 07, series of2011, jong 92 and 93,% AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 28 24 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198891 ‘CHAPTER VI: LAND REDISTRIBUTION Other qualified beneficiaries who are displaced after the distribution of all available land to agricultural lessee, tenant, or regular farmworker, may still qualify as beneficiaries in other lands covered under the Comprehensive Agrarian Reform Program. However, if the landholding is more than enough to accom Yactors to Be Considered in Determining the Size of Land to Be Awarded In determining the size of the land for distribution, the following factors are to be considered: date the 3-hectare limit for each agricultural lessee, tenant, or regu 1) Type of crop; lar farmworker, the excess will be distributed to agrarian reform’ 2) Type of soil; beneficiaries in the following order of priority: 1) seasonal farmworkers; 2) other farmworkers; 3) actual tillers or occupants of public lands; 3) Weather patterns; and 4) Other pertinent factors critical for the success of the beneficiaries.!* Ane SECTION 24. Award to Beneficiaries. — The rights and responsibilities of the beneficiaries shall commence from their receipt of a duly registered emancipation patent ‘or certificate of land ownership award and their actual Birricn! posscaron of the awarded land. Such award shall » completed in not more than one hundred eighty (180) days from the date of registration of the title in the name of the Republic of the Philippines: Provided, That the ¢mancipation patents, the certificates of land ownership ‘award, and other titles issued under any agrarian reform program shall be indefeasible and imprescriptible after one (1) year from its registration with the Office of the Registry of Deeds, subject to the conditions, limitations and qualifications of this Act, the property registration decree, and other pertinent laws. The emancipation patents or the gertificates of land ownership award being titles brought \under the operation of the Torrens system, are conferred. with the same indefeasibility and security afforded to all itles under the said system, as provided for by Presidential Decree No. 1529, as amended by Republic Act No. 6732. It is the ministerial duty of the Registry of Deeds to register the title of the land in the name of the Republic of the Philippines, after the Land Bank of the Philippines (LBP) has certified that the necessary deposit in the name of the landowner constituting full payment in cash or in bond with due notice to the landowner and the registration of the certificate of land ownership award issued to the 4) others direetly working on the land. ‘There may be a situation where the area in a particular landholding is inadequate to provide the beneficiaries of each of these remaining categories with land of more than 1,000 square meters. In such a case, each beneficiary shall be awarded 1,000. square meters of land taking into account length of service. Should an area of less than 1,000 square meters be left in the course of the award, this remaining area shall then be distributed equally among the said beneficiaries who had received 1,000 square meters, With regard to excess areas after the allocation mentioned in the preceding paragraph, these shall be awarded to collectives or cooperatives of the above beneficiaries. However, the tenants in these excess areas shall be given a reasonable time to harvest the produce of their crop, subject to the rules on standing crops.'® If the beneficiaries opt for collective ownership, such as a farmers’ cooperative, the total area must coincide with the total umber of members or co-owners malipied by the three hectary limit." ‘Department of Agrarian Reform Administrative Order No, 07, series of 2011, Sections 98, 94, and 85. “Comprehensive Agrarian Reform Law of 1988, Section 25; Department of ‘Agrarian Roform Administrative Order No. 07, series of 2011, Sections 98. 7 Comprehensive Agrarian Reform Law of 1988, Section 25,9 AGRARIAN LAW AND SOCIAL LEGISLATION Sec. 24 beneficiaries, and to cancel previous titles pertaining thereto. Identified and qualified agrarian reform beneficiaries, based on Section 22 of Republic Act No. 6657, as amended, shall have usufructuary rights over the awarded land as soon as the DAR takes possession of such land, and such right shall not be diminished even pending the awarding of the emancipation patent or the certificate of land ownership award. All cases involving the cancellation of registered eman- cipation patents, certificates of land ownership award, and other titles issued under any agrarian reform program are within the exclusive and original jurisdiction of the Secre- tary of the DAR.” NOTE! ‘Transfer of Ownership to the Bene! s Not Automatic Compulsory acquisition does not mean automatic transfer of ownership of the land to the tenant, lessee or farmworker. Title and ownership over the land can be transferred to the beneficiaries only upon full payment of just compensation to the landowner."* When the Certificate of Land Ownership Award Will Be Issued Under the Comprehensive Agrarian Reform Law of 1988, Certificates of Land Ownership Award are issued. This certificate evidences the ownership of the land awarded to the beneficiary by the Department of Agrarian Reform.'S Full payment of amortization is required before a farmer-beneficiary may be issued a Certificate of Land Ownership Award, Such certificate, in turn, becomes the basis forthe issuance in his name of an original or transfer certificate of TAs vad hy Republic Act No 970, "Aiertation of Smal Landowners inthe Philippines Ine. e. Sectary of Arora Rr GR. Nes 7, 780 79744, and 117 dy 6 190), Tria Land Banko he Phi Va de Al, GB, No. 16063 the 2009), 602 Phil, 710-721. oti "Lebrudo aya, No, 181970 March 82011), 60 Phi 456-468; Land Bank ofthe Piipinse. Phi Aro Industral Cor. GR. No, 185987 (March 13, "Padua v, Court of Appeals, C.R. No, 153456 [March 2, 2007), 646 Phil. 63-75 oc 24 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1968 93, ‘CHAPTER VIL: LAND REDISTRIBUTION Indefeasibitity Certificates of Land Ownership Awards and other titles jmued under the agrarian reform program become indefeasible nd imprescriptible after one year from its registration with the Office of the Registry of Deeds, subject to the conditions, imitations and qualifications under Comprehensive Agrarian Hoform Law, the Property Registration Decree, and other pertinent Jaws.” The Supreme Court had the occasion to discuss the nature of 4 Certificate of Land Ownership Award in Department of Agrarian Reform v. Carriedo.* Thus: “Finally, petitioners cannot argue that the (Certifi- cates of Land Ownership Awards] allegedly granted in favor of his co-petitioners Corazon and Orlando cannot be set aside. They claim that [Certificates of Land Owner- ship Awards] under [the Comprehensive Agrarian Reform Law of 1988] are enrolled in the Torrens system of regis- tration which makes them indefeasible as certificates of title issued in registration proceedings. Even as these al- legedly issued (Certificates of Land Ownership Awards} are not in the records, we hold that [such certificates] are not equivalent to a Torrens certificate of title, and thus tare not indefeasible. (Certificates of Land Ownership Awards] and (Bmaneipation Patents] are similar in nature to a Certificate of Land Transfer (CLT) in ordinary land registration proceedings. (Certificates of Land Transferl, and in turn the [Certificates of Land Ownership Awards] and [Emancipation Patents], are issued merely fas preparatory steps for the eventual issuance of a certificate of title. They do not possess the indefeasibility of certificates of title.” Gancollation of Certificates of Land Ownership Award All cases involving the cancellation of Certificates of Land Ownership Award, and other titles issued under any agrarian TGomprehensive Agrarian Reform Lav of 1988, Section 24 "GR, No. 176549 [January 20, 2016); citing Ageavili, Oswaldo D. (2011) sty Registration Decree and Related Lauss (Land Titles and Deeds), p. 758.of AGRARIAN LAW AND SOCIAL LEGISLATION See. 24 reform program are within the exclusive and original jurisdiction of the Secretary of the Department of Agrarian Reform. Grounds for Cancellation of Certificates of Land Ownership Award Certificates of Land Ownership Award may be cancelled on the following grounds: 1) Abandonment of the land; 2) Neglect or misuse of land; 3) Failure to pay three annual amortizations; 4) Misuse or diversion of financial and support services;"! 5) Sale, transfer, or conveyance of the right to use the land; and_ ee 6) Illegal conversion of the land.” When the Rights and Obligations of Beneficiaries Commence The rights and responsibilities of the beneficiaries begin from their receipt of a duly registered Certificate of Land Ownership Award and their actual physical possession of the awarded land.* Pending issuance of Certificate of Land Ownership Award, the identified and qualified agrarian reform beneficiaries have usufructuary rights over the awarded land which the Department of Agrarian Reform, has taken possession.» Criminal Violation ‘The Comprehensive Agrarian Reform Law of 1988 prohibits a beneficiary to sell, transfer or convey his right to use or any other Sra Hearne i sores eats han “semaine ir. re Section 108; Spouses Pasco v. Pison-Arceo Agricultural a pment Corp, .R. semi doa arsed oe. “Department of Agrarian Reform Administrative Order No, 07, series of seen OS Order No. 07, series of 2011, Sec. 25 THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198895 CHAPTER Vil: LAND REDISTRIBUTION usufructuary right over the land he acquired by virtue of being a beneficiary if done to circumvent the law.* Obligations of Agrarian Reform Beneficiaries Agrarian reform beneficiaries are obliged to: 1) _Exereise due diligence in the use, cultivation and maintenance of the land, including improvements thereon; 2) Pay the Land Bank 30 annual amortizations with 6% interest per annum; and 3) Pay the real property taxes due on their awarded lands." ‘The amortization will start one year from the date of registra- tion of the Certificate of Land Ownership Award. But if actual occu- pancy of the land takes place after the registration of the Certificate of Land Ownership Award, the one-year period shall be reckoned from actual occupation of the land by the beneficiary.» SECTION 25. Award Ceilings for Beneficiaries. — Bene- ficiaries shall be awarded an area not exceeding three (3) hectares, which may cover a contiguous tract of land or several parcels of land cumulated up to the prescribed award limits. The determination of the size of the land for distribution shall consider crop type, soil type, weather patterns and other pertinent variables or factors which are deemed critical for the success of the beneficiaries. For purposes of this Act, a landless beneficiary is one who owns less than three (3) hectares of agricultural land. Whenever appropriate, the DAR shall encourage the agrarian reform beneficiaries to form or join farmers’ co- operatives for purposes of affiliating with existing coop- erative banks in their respective provinces or localities, as well as forming blocs of agrarian reform beneficiaries, corporations, and partnerships and joining other farmers’ ™ Comprehensive Agrarian Reform Law of 1988, Section 7316). "Department of Agrarian Reform Administrative Order No. 07, veies of 2011, Section 102, Comprehensive Agrarian Reform Law of 1988, Section 26,96 AGRARIAN LAW AN! See. 25 collective organizations, including irrigators’ associations: Provided, That the agrarian reform beneficiaries shall be assured of corresponding shares in the corporation, seats in the board of directors, and an equitable share in the profit. In general, the land awarded to a farmer-beneficiary should be in the form of an individual title, covering one (i) contiguous tract or several parcels of land cumulated up to a maximum of three (3) hectares. ‘The beneficiaries may opt for collective ownership, such as co-workers or farmers cooperative or some other form of collective organization and for the issuance of collective ownership titles: Provided, That the total area that may be awarded shall not exceed the total number of co-owners or members of the cooperative or collective organization multiplied by the award limit above prescribed, except in meritorious cases as determined by the PARC. The conditions for the issuance of collective titles are as follows: (a) The current farm management system of the land covered by CARP will not be appropriate for individual farming of farm parcels; (b) The farm labor system is specialized, where the farmworkers are organized by functions and not by specific parcels such as spraying, weeding, packing and other similar functions; () The potential beneficiaries are currently not farming individual parcels but collectively work on large contiguous areas; and (d)_ The farm consists of multiple crops being farmed in an integrated manner or includes non- crop production areas that are necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that cannot be subdivided or assigned to individual farmers. For idle and abandoned lands or underdeveloped agri- cultural lands to be covered by CARP, collective ownership shall be allowed only if the beneficiaries opt for it and there is a clear development plan that would require collective (we.25 ‘THE COMPREHENSIVE AGRARIAN REFORM LAW OF 198897 ‘CHAPTER VI: LAND REDISTRIBUTION farming or integrated farm operations exhibiting the con- ditions described above. Otherwise, the land awarded to a farmer-beneficiary should be in the form of an individual title, covering one (1) contiguous tract or several parcels of Jand cumulated up to a maximum of three (3) hectares. Incase of collective ownership, title to the property shall issued in the name of the co-owners or the cooperative or collective organization as the case may be. If the certificates of land ownership award are given to cooperatives then the fumes of the beneficiaries must also be listed in the same certificate of land ownership award. With regard to existing collective certificates of land ownership award, the DAR should immediately undertake the parcelization of said certificates of land ownership Award, particularly those that do not exhibit the conditions for collective ownership outlined above. The DAR. shall conduct a review and redocumentation of all the collective certificates of land ownership award. The DAR shall prepare a prioritized list of certificates of land ownership award to be parcelized. The parcelization shall commence Immediately upon approval of this Act and shall not exceed i period of three (3) years. Only those existing certificates land ownership award that are collectively farmed or are ‘operated in an integrated manner shall remain as collective.” NOTES: Individual Titles for Every Beneficiary ‘Asa general rule, the land should be awarded to the individual {nrmer-beneficiary and covered by an individual title, However, if the beneficiaries opt for collective ownership, such WW farmers cooperative, collective ownership title may be issued in {the name of the co-owners or the collective organization. If the title Wsissued in the name of the collective organization, the names of the Iwneficiaries must be listed in the same certificate of land ownership award.” As amended by Republic Act No, 9700. "Department of Agrarian Reform Administrative Order No, 07, series of 2011, Pection 6AGRARIAN LAW AND SOCIAL LEGISLATION Conditions for Issuance of Collective Titles ‘There are certain conditions that must be complied with before a collective ownership title can be issued, namely: 1) The farm management system of the land covered is not appropriate for individual farming; 2) The farm labor system is specialized, ie., where the farmworkers are organized by functions and not by specific parcels such as spraying, weeding, packing and other similar functions; 3) The beneficiaries are currently not farming in- dividual parcels but collectively work on large contiguous areas; and 4) ‘The farm consists of multiple crops being farmed in an integrated manner or includes non-crop production areas that are necessary for the viability of farm operations, such as packing plants, storage areas, dikes, and other similar facilities that cannot be subdivided or assigned to individual farmers." Title Must Indicate That It is an Emancipation Patent or Certificate of Land Ownership Award ‘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. ‘The subsequent transfer title must also indicate that it is an ‘Emancipation Patent or a Certificate of Land Ownership Award. SECTION 26. Payment by Beneficiaries. — Lands awarded. pursuant to this Act shall be paid for by the beneficiaries to the LBP in thirty (30) annual amortizations at six percent (6%) interest per annum. The annual amortization shall start one (1) year from the date of the certificate of land ownership, award registration. However, if the occupancy took place after the certificate of land ownership award registration, the amortization shall start one (1) year from actual occu- Department of Agrarian Reform Administrative Order No. 07, series of 2011, Seetion 96. Comprehensive Agrarian Reform Law of 1988, Section 27, See. 28 fiec.26. THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 ‘CHAPTER VII: LAND REDISTRIBUTION pancy. The payments for the first three (3) years after the award shall be at reduced amounts as established by the PARC: Provided, That the first five (5) annual payments may hot be more than five pereent (5%) of the value of the annual ross production as established by the DAR. Should the scheduled annual payments after the fifth (5th) year exceed ton percent (10%) of the annual gross production and the fuilure to produce accordingly is not due to the beneficiary's fnult, the LBP shall reduce the interest rate and/or reduce the principal obligation to make the repayment affordable, ‘The LBP shall have a lien by way of mortgage on the Jund awarded to the beneficiary; and this mortgage may be foreclosed by the LBP for non-payment of an aggregate of three (3) annual amortizations. The LBP shall advise the DAR ‘bof such proceedings and the latter shall subsequently award the forfeited landholding to other qualified beneficiaries. A beneficiary whose land, as provided herein, has been foreclosed shall thereafter be permanently disqualified from hocoming a beneficiary under this Act.” NOTES: Hehodule of Payment ‘The cost of the awarded land is payable to the Land Bank (by the beneficiaries) in 30 annual amortizations with 6% interest per annum, Payment starts one year from: 1) date of registration of the Certificate of Land Ownership Award; or 2) date of actual occupancy, if the occupancy took place after the registration of the Certificate of Land Ownership Award. i Is of Amortization ye maximum amortization is 5% of the annual gross on as established by the Department of Agrarian Reform. An amended by Republic At No. 9700100 AGRARIAN LAW AND SOCIAL LEGISLATION See. 27 After the 5th year, the interest rate and/or the principal obligation may be reduced by the Land Bank to make the repayment. affordable: 1) If due to failure of production, the scheduled annual payments exceed 10% of the annual gross production; and 2) the failure to produce is not due to the benefi- ciary’s fault. Effect of Failure to Pay the Amortizations If the beneficiary fails to pay three annual amortizations, the Land Bank can forfeit the landholding and award it to other qualified beneficiaries The beneficiary whose land has been foreclosed or forfeited will be permanently disqualified from becoming a beneficiary. SECTION 27. Transferability of Awarded Lands. ~ Lands acquired by beneficiaries under this Act or 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 the DAR 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 BARC of the barangay where the land is situated. The 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 @ 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. Ifthe 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, Failing nce herewith, the land shall be transferred to the fe.27. THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988 101 CHAPTER VIE: LAND REDISTRIBUTION LBP which shall give due notice of the availability of the lund 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 mounts the latter has already paid, together with the value of improvements he/she has made on the land. NOTES: Sale or Transfer of Awarded Lands Prohibited Agrarian reform beneficiaries cannot, within a period of 10 "years, sell or transfer ownership of the land awarded to them, except: 1) through hereditary succession; 2) to the Government; 3) tothe Land Bank of the Philippines; or 4) to other qualified beneficiaries. Meaning of Hereditary Succession Hereditary succession means suecession by intestate sueces- sion or by will to the compulsory heirs — it does not pertain to suc- ‘onsion to other persons. The prohibition against transfer to persons ‘ther than the heirs of the agrarian reform beneficiary stems from the policy of the Government to develop generations of farmers to at- win its avowed goal to have an adequate and sustained agricultural production with certitude. Such objective will not see the light of the lay if lands covered by agrarian reform can easily be converted to ponagricultural purposes.** fiffect of Sale or Transfer to the Government or the Land Bank Ifthe beneficiary sells or transfers ownership of the land to the Government or to the Land Bank of the Philippines, the children (or the spouse of the transferor can repurchase the land within two {yours from the date of transfer.” As amended by Republic Act-No.9700. °Batate of Va. de Panliiov. Dizon, G.R. Nos. 148777 and 157598 [October 18, W007), 562 Phil 518.557. Department of Agrarian Reform Administrative Order No. 7, series of 2011, Hection 102,102 AGRARIAN LAW AND SOCIAL LEGISLATION Soe. 28 Sale of Land That Has Not Been Fully Paid If the land has not yet been fully paid by the beneficiary, he may sell transfer, or convey his rights to the land under the following conditions: 1) Approval of the Department of Agrarian Reform must first be obtained; 2) The land should be sold only to an heir of the beneficiary or to any other qualified beneficiary; and 3) The transferee must undertake to cultivate the land himself, otherwise, the Land Bank will take the land for proper disposition. If the sale or transfer complies with the foregoing conditions, the Land Bank will compensate the beneficiary (ic., the seller or transferor) in one lump sum for the amounts he has already paid, together with the value of improvements he has made on the land, Lease by Beneficiary to Another Person ‘What the law prohibits is the transfer of ownership, nob transfer of possession. Therofore, the beneficiary can lease the land. to another person, provided that the lease is also for agricult purposes. If the lease is for nonagricultural purpose, such as lease to a telecommunications company for cellsites or antennas, beneficiary must seek the approval of the Department of Agrari Reform. Lease by Beneficiary to Former Landowner ‘The beneficiary can lease the land to its former owner. But this can be done only after obtaining approval by the Departm of Agrarian Reform through the Provincial Agrarian Refor Coordinating Committee.” SECTION 28. Standing Crops at the Time of Acquisition. = ‘The landowner shall retain his share of any standing crops unharvested at the time the DAR shall take possession of the land under Section 16 of this Act, and shall be given a reasonable time to harvest the same. "Comprehensive Agrarian Reform Law of 1988, Section 44(u)( Soc. 28. THE COMPREHENSIVE AGRARIAN REFORM LAW OF 1988103, CHAPTER Vil: LAND REDISTRIBUTION NOTE: Right over Standing Crops at the Time of Acquisition ‘The landowner retains his right over crops not yet harvested tt the time the Department of Agrarian Reform takes possession of the land.