DARAB Jurisdiction Over Annulment of Land Sales Without DAR Clearance

The Department of Agrarian Reform Adjudication Board (DARAB) has jurisdiction over petitions to annul deeds of sale and cancel titles involving agricultural lands covered by the Comprehensive Agrarian Reform Program (CARP), even without a prior notice of coverage. This was the ruling of the Supreme Court in Department of Agrarian Reform v. Robles (G.R. No. 190482, December 9, 2015), which clarified the scope of DARAB's quasi-judicial powers.

The Dispute

Eduardo Reyes owned agricultural lands in Magdalena, Laguna, totaling over 200,000 square meters. In 1997, he sold portions of these lands to six buyers. The deeds of sale were registered in 2005, and new Transfer Certificates of Title were issued to the buyers.

In 2006, the DAR filed a petition before the Provincial Agrarian Reform Adjudicator (PARAD) to annul the deeds of sale and cancel the titles. The DAR alleged that the sales were executed without prior DAR clearance, violating Section 6, paragraph 4 of Republic Act No. 6657 (the Comprehensive Agrarian Reform Law of 1988).

The buyers moved to dismiss, arguing that the DARAB lacked jurisdiction because no tenancy relationship existed between the parties. The Court of Appeals agreed, ruling that without a tenurial arrangement, the case was not an agrarian dispute and should be heard by regular courts.

The Issue

The sole issue before the Supreme Court was whether the DARAB has jurisdiction over a petition for annulment of deeds of sale and cancellation of titles involving lands under the administration and disposition of the DAR.

The Ruling

The Supreme Court ruled in favor of the DAR, holding that the DARAB had jurisdiction over the petition.

The Court explained that jurisdiction is determined by the material allegations in the petition and the character of the relief prayed for, not by the defenses raised by the respondents. While no tenancy relationship existed between the parties, the petition alleged that the properties were agricultural lands exceeding the five-hectare retention limit and that they were sold without the required DAR clearance.

The Court distinguished between "agrarian disputes" and "agrarian reform matters." While DARAB's jurisdiction over agrarian disputes requires a tenancy relationship, the DAR is vested with primary jurisdiction to determine and adjudicate agrarian reform matters under R.A. No. 6657 and Executive Order No. 229. Since the law does not define the term "agrarian reform matters," it cannot be restricted only to tenancy-related disputes.

The Court found that the petition fell under Section 1(1.5), Rule II of the 2003 DARAB Rules of Procedure, which covers cases involving the sale, alienation, pre-emption, and redemption of agricultural lands under the coverage of the CARL or other agrarian laws. Citing Sarne v. Hon. Maquiling, the Court held that "agricultural lands under the coverage of the CARP" includes all private lands devoted to or suitable for agriculture, as defined under Section 4 of R.A. No. 6657—regardless of whether a notice of coverage had been issued.

Why the Notice of Coverage Is Not Decisive

The Court acknowledged that a notice of coverage is important for the acquisition of lands under CARP, serving as a due process requirement under R.A. No. 6657. However, it is not a jurisdictional prerequisite for the DARAB to hear cases involving the sale of agricultural lands covered by the CARP. The phrase "under the coverage of the CARP" is broad enough to include all private agricultural lands.

Practical Takeaways

• DARAB jurisdiction is broad. The DARAB can hear cases involving the sale of agricultural lands covered by the CARP, even without a notice of coverage or an existing tenancy relationship between the parties.
• Jurisdiction depends on the petition's allegations. What matters is what the petition alleges and the relief it seeks, not the defenses raised by the respondents.
• DAR clearance is critical. Sales of agricultural lands covered by the CARP require prior DAR clearance under Administrative Order No. 1, series of 1989. Failure to secure this may render the sale void and subject to annulment.
• Regular courts are not always the remedy. For cases involving the annulment of sales of CARP-covered agricultural lands, the DARAB—not the regular courts—has primary jurisdiction.
• Buyers of agricultural land should verify CARP coverage. Purchasers should check whether the property is agricultural and whether DAR clearance was obtained before completing the transaction.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.