No More DAR Clearance to Sell Farmland? What DOJ Opinion No. 16 Means for Landowners, Heirs and Buyers

By Carla Calleja, MBA, REB

AI-generated illustration of a Filipino farmer holding land papers beside a rice field — AI-generated illustration / dramatization.

The question landowners are asking

Mang Ruben inherited two hectares of riceland from his father. A buyer is ready, but for years the advice was always the same: “Kumuha muna ng DAR clearance.” Now his cousin says a new DOJ opinion removed that step. Totoo ba? And is it safe to sign?

This is one of the biggest land-transfer stories of the past few weeks, and it affects owners, heirs, OFWs who inherited farmland, buyers, developers and farmers. Here is what changed, what is still uncertain, and what to do before you sign anything. (Mang Ruben is a fictional example.)

The short answer

A Department of Justice opinion, DOJ Opinion No. 16, series of 2026, says that private agricultural land with no existing Notice of Coverage under agrarian reform no longer needs a DAR Land Transfer Clearance before the sale is registered. But the opinion has been challenged before the Supreme Court, and developers themselves are asking DAR, the LRA and the Registries of Deeds for joint guidelines. So the rule on paper and the practice at your Registry of Deeds may not match yet.

What the DOJ opinion says

According to reports, the opinion was issued by the Justice Secretary and is dated March 9, 2026. It was sought after the Land Registration Authority asked for guidance. Its reasoning: the five-hectare retention limit under the Comprehensive Agrarian Reform Law (RA 6657, as amended) was the legal basis for requiring a DAR clearance on transfers of private farmland, and that limit stopped taking effect after the June 30, 2014 land-acquisition deadline set by the CARP Extension with Reforms law (RA 9700). The opinion therefore treats the clearance under DAR Administrative Order No. 04, s. 2021 as no longer required for land without a Notice of Coverage.

BusinessWorld also reported that DAR had drafted an unnumbered administrative order in January to drop the clearance requirement, which the DAR Secretary described as “preparatory.”

Why it is not settled yet

Supreme Court challenge. On October 2, 2026, MAGSASAKA Party-list and the Federation of Free Farmers asked the Supreme Court to nullify the opinion and to stop the LRA and registrars from registering farmland transfers without DAR clearance. They argue that only Congress can remove the requirement and warn about land speculation and reconsolidation.
Developers want clear rules. The Subdivision and Housing Developers Association (SHDA) supports the opinion but has asked DAR, LRA and the Registries of Deeds to issue uniform joint guidelines so it is applied the same way everywhere.
Confusion at registries. A September column in The Manila Times reported confusion among registrars and the registering public.

As of this writing, I found no report of a Supreme Court ruling on the petition and no published joint DAR–LRA guidelines. I will update you when either comes out.

What does NOT change

Land that already has a Notice of Coverage stays covered by agrarian reform, as reported.
Land awarded to farmers under a CLOA or Emancipation Patent remains subject to agrarian reform rules on transfer.
If farmland will be used for housing, commercial or industrial purposes, DAR land use conversion, local zoning and DENR environmental requirements still apply.
Taxes on the sale (capital gains tax, documentary stamp tax, transfer tax) and the BIR eCAR are separate requirements and are not affected.

Step by step: what to do if you are selling, buying or inheriting farmland

Get a fresh certified true copy of the title from the Registry of Deeds. Check the annotations for a Notice of Coverage, CLOA/EP origin, or any DAR restriction.
Ask the Registry of Deeds where the land is located what it currently requires for registering a farmland sale. Requirements on the ground may differ while guidelines are pending.
Check with the DAR Municipal or Provincial Agrarian Reform Office whether the land is covered or has tenants. Tenant and farmworker rights are a separate issue from the clearance.
Planning to build? Budget time and cost for DAR conversion, zoning and DENR clearances.
Protect both sides in the contract. Ask your lawyer about a clause that covers what happens if the Supreme Court rules against the opinion before registration is completed.

What this means for you

Owners and heirs: a sale may move faster, but do not assume the Registry of Deeds will accept it without asking first.
Buyers: do your title due diligence even more carefully. Hindi porket mabilis ay ligtas.
Farmers and ARBs: your rights under CARP did not disappear. If you are a tenant or beneficiary, go to your DAR office.
OFWs: if you are selling inherited farmland from abroad, use a properly notarized or consularized SPA and have someone check the registry requirements locally.

FAQ

Is a DAR clearance still needed to sell farmland in the Philippines?

Under DOJ Opinion No. 16, s. 2026, not for private agricultural land without a Notice of Coverage. But the opinion is being challenged at the Supreme Court, so check with your Registry of Deeds before you sign.

Does this apply to CLOA land?

No. Land awarded under agrarian reform remains subject to agrarian reform rules on transfer.

Can I now build a subdivision on riceland without DAR?

No. Land use conversion from DAR, zoning and DENR requirements still apply, as SHDA itself pointed out.

What is a Notice of Coverage?

It is the notice that starts the process of placing a landholding under agrarian reform coverage. Ask the DAR office in your municipality whether one was issued for your land.

Ask Broker Carla

Selling or buying farmland and not sure what the registry will ask for? Comment FARMLAND on my Facebook page, send me your “Broker Carla, …” question at facebook.com/carlacallejabrokerphilippines, or email buyrentph@gmail.com.

This article is for general information only and is not legal or tax advice. For your specific situation, consult a lawyer or a licensed professional.