SHDA welcomes DOJ opinion streamlining land transfers, calls for uniform guidelines to accelerate affordable housing
DOJ Opinion No. 16 ends the DAR land transfer clearance for private farmland without a Notice of Coverage. SHDA backs it and wants uniform national guidelines.
NEWS
10/8/20262 min read
Buyers of private agricultural land in the Philippines no longer need a Land Transfer Clearance (LTC) from the Department of Agrarian Reform (DAR) if the property has no Notice of Coverage (NOC), according to a Department of Justice (DOJ) legal opinion. The Subdivision and Housing Developers Association (SHDA), the country's premier organization of housing developers, welcomed the ruling and asked government agencies to apply it uniformly.
What DOJ Opinion No. 16 changes for land transfers
DOJ Legal Opinion No. 16, Series of 2026, covers private agricultural land transactions without an existing NOC. It says those deals no longer require DAR's clearance.
The DOJ reasoned that the five-hectare retention limit, which was the legal basis for the clearance, stopped being effective after the statutory cutoff on June 30, 2014, known as the CARPER Deadline.
Why the land transfer clearance mattered to housing developers
For developers, the LTC added a step before any land purchase could move forward. Dropping it for unencumbered titles lets them advance more efficiently toward title transfer, project financing, permitting, construction, and site preparation.
SHDA said faster does not mean looser. Its members remain committed to full compliance with national and local laws, including DAR land use conversion requirements, local zoning ordinances, Department of Environment and Natural Resources (DENR) requirements for environmental clearance, and other housing development regulations.
"Predictability in land administration is important to keeping housing projects moving," said Engr. Francis Richmond Z. Villegas, SHDA Chairman of the Board. "A clear and consistent process allows developers and other stakeholders to make informed decisions, manage project timelines, and pursue investments with confidence. We see this as an opportunity to support a framework that is responsive to the needs of the housing industry while remaining aligned with existing laws and regulations."
SHDA members build 80% of the homes produced in the Philippines each year, the association said. It added that cutting transaction costs and administrative delays is a step toward expanding the supply of affordable homes for Filipino families.
SHDA calls for joint DAR, LRA, and ROD guidelines
SHDA said consistent implementation will determine whether the gains reach the ground. To keep the transition orderly, it is urging DAR, the Land Registration Authority (LRA), and the Registers of Deeds (RODs) to issue joint administrative guidelines that set standard procedures and documentary requirements nationwide.
"The DOJ opinion gives the industry legal clarity. What we need now is the same clarity on the ground. Joint guidelines from DAR, LRA, and the RODs will ensure that every office applies the ruling the same way, so landowners, developers, and financial institutions can move forward with certainty," said Mr. Kerwin V. Padua, SHDA National President.
SHDA said it will keep talking with government agencies to build a clear, efficient, and predictable land administration framework that supports responsible development and addresses the country's housing needs.
