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In DOJ Opinion No. 16, series of 2026, dated 9 March 2026, the Department of Justice opined that a Land Transfer Clearance (LTC) from the Department of Agrarian Reform (DAR) is no longer required before the transfer of private agricultural land may be registered.
The opinion was issued in response to a request from the Land Registration Authority (LRA).
Why is the DAR clearance no longer required?
The DAR Land Transfer Clearance was required, among others, to ensure compliance with the land retention limits under the Comprehensive Agrarian Reform Law (R.A. No. 6657), as amended.
However, the DOJ held that Congress placed a definite period on the operation of the Comprehensive Agrarian Reform Program (CARP), which ended on 30 June 2014.
As expressly stated by the DOJ:
“In light of the sunset clause provided for by the law, this Department so holds that the CARP ceased to be effective as of 30 June 2014. This means simply that all provisions of R.A. No. 6657, including the retention limits on land ownership, cease to be effective and become functus officio as well. This is in line with the legal maxim ‘cessante ratione legis, cessat et ipsa lex’. Any requirement imposed by R.A. No. 6657 upon a landowner in compliance with obligations or in relation to CARP, such as securing a LTC prior to the transfer of any private agricultural land under DAR AO No. 04, s. 2021, ceases to have any legal basis.
As the history of the CARP will show, Congress intended the same to operate within a limited statutory period of ten (10) years initially, which was subsequently extended and given a statutory cutoff of 30 June 2014. In recognition of this Congressional desire, this Department cannot help but adopt an interpretation that is in accord and in tune with the same.
In sum, this Department opines that the retention limits provided for by R.A. No. 6657, as amended, is no longer relevant and required, thereby dispensing with the need to secure a Land Transfer Clearance under DAR AO No. 04, s. 2021.”
What does this mean for landowners?
Previously, a sale, donation, or other transfer of private agricultural land could require a DAR Land Transfer Clearance before the Register of Deeds would register the transaction.
Under DOJ Opinion No. 16, s. 2026, the absence of an LTC should no longer, by itself, prevent the registration of a transfer of private agricultural land.
This could eliminate an additional documentary step and reduce the time and expense involved in registering agricultural land transfers.
The opinion is particularly significant because it was issued in response to the LRA, which exercises supervision over the Registers of Deeds.
Other requirements may still apply
The DOJ Opinion does not mean that every agricultural land transfer may automatically be registered without further requirements.
Depending on the property and transaction, taxes, restrictions annotated on the title, agrarian reform awards, tenancy issues, land-use or conversion requirements, and other applicable laws and regulations may still need to be considered.
Nevertheless, DOJ Opinion No. 16, s. 2026 represents a significant development for agricultural land transactions: the DOJ has expressly taken the position that the legal basis for requiring a DAR Land Transfer Clearance under DAR Administrative Order No. 04, s. 2021 has ceased.
For landowners, buyers, lawyers, brokers, and real-estate practitioners, this may mean one less documentary requirement in the transfer and registration of private agricultural lands.
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