15/07/2024
PUBLIC KNOWLEDGE
The sale of subdivided farmland is regulated by several laws to ensure that agricultural lands are used appropriately and that transactions are fair and legal.
Key regulations include the Comprehensive Agrarian Reform Law (CARL), the Local Government Code, and zoning laws. Here are the main points to consider:
Key Regulations
1. COMPREHENSIVE AGRARIAN REFORM LAW ( CARL ) / Republic Act No. 6657
- Land Conversion:
Under CARL, agricultural land cannot be converted to non-agricultural uses without proper approval from the Department of Agrarian Reform (DAR). If the subdivided farmland is intended for non-agricultural purposes, the owner must secure a conversion order from the DAR.
- Retention Limits: Landowners can retain a maximum of 5 hectares of agricultural land. Any excess must be subject to agrarian reform, and the distribution of the land to farmer beneficiaries must comply with the guidelines set by the DAR.
2. LOCAL GOVERNMENT CODE OF 1991 / Republic Act No. 7160
- Zoning Ordinances:
Local government units (LGUs) have the authority to enact zoning ordinances that dictate land use within their jurisdiction. Before selling subdivided FARMLAND, the landowner must ensure that the subdivision complies with local zoning regulations.
3. SUBDIVISION AND CONDOMINIUM BUYERS’ PROTECTION DECREE / Presidential Decree No. 957
- Subdivision Plans:
If the FARMLAND is subdivided into smaller lots for sale, the subdivision plan must be approved by the local government and the Housing and Land Use Regulatory Board (HLURB), now part of the Department of Human Settlements and Urban Development (DHSUD).
- License to Sell:
The developer must secure a License to Sell from the DHSUD before offering the subdivided lots for sale.
4. AGREICULTURAL FREE PATENT ACT / Republic Act No. 11231
- Restrictions on Sale:
Agricultural lands acquired through free patent cannot be sold or transferred within five years from the issuance of the patent, except through hereditary succession or to the government.
FOR BUYERS OF SUBDIVIDE FARMLOT , insured that the following documents will be provided by the SELLER/S:
1. License to Sell from DHSUD before marketing the lots
2. Survey and Documentation.
- Make sure the land was surveyed ask for copy of the that documents , titles and deeds.
3. Make sure that the sellers are registered real estate professionals in PRC and DHSUD. Selling real estate without accreditation /license is punishable.
Penalties for Unlicensed Practice
Fines and Imprisonment:
According to Section 29 of RA 9646, any person who practices real estate service without a valid license may be fined not less than P100,000 or imprisoned for not less than two years, or both, at the discretion of the court.
Cease and Desist Order:
The PRC, through its regulatory boards, can issue a cease and desist order against any unlicensed practitioner. This order stops the individual from continuing any real estate practice activities immediately.
Administrative Actions:
The PRC can also file administrative cases against individuals practicing without a license, leading to additional fines and sanctions.
Criminal Charges:
Practicing without a license can lead to criminal charges being filed in court, resulting in a trial and possible criminal record for the offender.
4. Public Notice: Provide public notice of the sale as required by law.
Scenario:
A landowner wants to subdivide a 10-hectare farmland into residential lots. The owner must first check if the land is subject to agrarian reform and secure a conversion order from DAR if needed. The subdivision plan must then be approved by the LGU and DHSUD. The owner must also ensure compliance with local zoning laws and secure a License to Sell before offering the lots for sale.
