SHDA backs DOJ land transfer opinion, seeks uniform guidelines

Insider Spotlight

• SHDA backed a DOJ opinion removing the Land Transfer Clearance requirement for certain private agricultural land transactions without an existing Notice of Coverage
• The housing developers’ group said eliminating the clearance could speed up land acquisition, financing, permitting and construction while existing land-use and environmental rules remain in force
• SHDA urged DAR, the Land Registration Authority and Registers of Deeds to issue joint nationwide guidelines to ensure consistent implementation
  
  
  
  

The Subdivision and Housing Developers Association (SHDA) is backing a Department of Justice (DOJ) legal opinion that could streamline land acquisition for housing projects, while calling for uniform implementing guidelines across government offices.

DOJ Legal Opinion No. 16, Series of 2026, states that private agricultural land transactions without an existing Notice of Coverage no longer require a Land Transfer Clearance from the Department of Agrarian Reform. 

The DOJ found that the five-hectare retention limit underpinning the clearance ceased to be effective after the June 30, 2014 CARPER deadline.

Streamlining processes

SHDA said removing the additional administrative step for unencumbered titles could allow developers to move more efficiently through title transfers, project financing, permitting, construction and site preparation.

The group stressed that developers must still comply with applicable national and local regulations, including DAR land-use conversion requirements, zoning ordinances and Department of Environment and Natural Resources environmental clearance rules.

Fewer administrative delays

“Predictability in land administration is important to keeping housing projects moving,” SHDA chairman of the board Engr. Francis Richmond Z. Villegas said in a press statement.

 “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,” Villegas added.

SHDA, whose members account for 80 percent of homes produced annually in the Philippines, said lower transaction costs and fewer administrative delays could help expand the supply of affordable housing.

Legal clarity

The association said consistent implementation will determine whether the DOJ opinion translates into faster transactions on the ground. It urged DAR, the Land Registration Authority and Registers of Deeds to establish standardized 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," SHDA national president Kerwin V. Padua said.

SHDA said it would continue engaging government agencies to promote a predictable land administration framework supporting responsible development and the country’s housing needs. —Vanessa Hidalgo | Ed: Corrie S. Narisma