Purchasing agricultural land and obtaining the Land Transfer Clearance

Q: Does anyone have experience with their wives purchasing agricultural land and obtaining the DAR LTC. (Land Transfer Clearance)? I’m having a hard time getting straight answers from attorneys and the DAR. The local attorneys are indicating that you have to pay for the land in full prior to applying for the DAR LTC. This makes no sense to me. Any enlightenment would be appreciated.

A: You can only get a DAR Clearance if you already have a notarized deed of sale which is one of the requirements for its issuance. The DAR Land Transfer Clearance is a requisite document, among others, to title transfer to the new agricultural property owner.

Begie Gomez

A: Check the encumbrance page of the title. it should say something about paying Landbank. check if the land can already be sold like it has been awarded 5 or 10 years ago. it should be indicated in the front page. Also, if the title is Patent or CLOA title, it should be converted to a regular title. its easier if the owner processes the conversion. you can give an small refundable deposit to the owner. not many lawyers know the procedure. better talk to those who have already processed transfers succesfully.

Carlo Conception

Buying agricultural land in the Philippines

The Philippines is an agricultural country, with over 40% of its land area classified as agricultural. This makes it a popular destination for investors who are looking to purchase agricultural land. However, there are some important things to keep in mind when buying agricultural land in the Philippines, including:

• Ownership restrictions: Under the Comprehensive Agrarian Reform Law (CARL), individuals are limited to owning five (5) hectares of agricultural land. Foreigners are not allowed to own agricultural land directly, but they can lease agricultural land for up to 50 years.
• Due diligence: It is important to conduct thorough due diligence on any agricultural land before purchasing it. This includes checking the title to the land, making sure that the land is not subject to any liens or encumbrances, and verifying that the land is zoned for agricultural use.
• Getting the necessary permits: Once you have found a piece of agricultural land that you are interested in purchasing, you will need to obtain the necessary permits from the Department of Agrarian Reform (DAR).

How to buy agricultural land in the Philippines

Here is a step-by-step guide on how to buy agricultural land in the Philippines:

1. Find a reputable real estate agent. A reputable real estate agent can help you find agricultural land that meets your needs and budget.
2. Conduct due diligence on the land. This includes checking the title to the land, making sure that the land is not subject to any liens or encumbrances, and verifying that the land is zoned for agricultural use.
3. Make an offer on the land. Once you have found a piece of agricultural land that you are interested in purchasing, you will need to make an offer to the seller.
4. Negotiate the purchase price and terms. Once your offer has been accepted, you will need to negotiate the purchase price and terms of the sale with the seller.
5. Have a lawyer review the sales contract. Before you sign the sales contract, it is important to have a lawyer review it to make sure that it is fair and protects your interests.
6. Pay the purchase price and get the title transferred to your name (where possible – spouse etc.). Once you have signed the sales contract and paid the purchase price, you will need to get the title to the land transferred to your name. This can be done through the Register of Deeds.

Tips for buying agricultural land in the Philippines

Here are some tips for buying agricultural land in the Philippines:

• Do your research. Learn as much as you can about the agricultural land market in the Philippines before you start shopping. This includes understanding the ownership restrictions, the due diligence process, and the permits that you will need to obtain.
• Work with a reputable real estate agent. A reputable real estate agent can help you find agricultural land that meets your needs and budget. They can also help you with the due diligence process and negotiate the purchase price and terms of the sale.
• Get a lawyer involved. It is important to have a lawyer review the sales contract before you sign it. A lawyer can make sure that the contract is fair and protects your interests.
• Be prepared to negotiate. The purchase price and terms of the sale are negotiable. Be prepared to negotiate with the seller to get the best deal possible.

Conclusion

Buying agricultural land in the Philippines can be a complex process, but it is possible with careful planning and execution. By following the tips above, you can increase your chances of having a successful purchase experience.