Is it safe to buy a property with CLOA Title?

Looking for a property to invest or a land where you can build your future home one can be taxing. There are are lot of factors to look into including and importantly the legality of the property that you are eyeing.

Is someone selling you a property or have you gained interest in a property that has CLOA title and you’re not sure whether or not it is safe to buy a property with CLOA Title? Here are some of the important information about CLOA land to help you decide whether or not it is worth all the effort to acquire it.

What is CLOA Title? 

Certificate of Land Ownership Awards or CLOA is a document that states ownership of the land granted or awarded to the beneficiary by the Department of Agrarian Reform (DAR). This means that the current owner of the CLOA land had acquired the property from DAR.

Can the owner sell the CLOA Land awarded to him?

The CLOA land is legally under the name of the owner or the beneficiary but it has some conditions and restrictions under the Comprehensive Agrarian Reform Law (CARL) and other applicable law. Included in the limitations is the selling or transferring of ownership of the CLOA Land to other people.

Unfortunately, CLOA lands cannot be alienated or sold to any other person. There is an existing 10-year restriction period from the time the land was award to the beneficiary stating that the beneficiary cannot dispose of these lands whether bu selling it or transferred.

Selling them to any developer or any private citizen without the permission of DAR considered illegal.

When can I buy a land with CLOA Title?

Since the CLOA land beneficiary is prohibited to sell, transfer or convey the right to use the land, it can only be sold, transferred or conveyed to their children, the government, the Land Bank of the Philippines (LandBank), or other qualified beneficiaries after 10 years.

Only after 10 years that the CLOA land title restrictions has lapsed can you safely and legally purchase the land.

Under the land reform law, farmer-beneficiaries can only sell the land after 10 years and/or only after the original owner has been compensated.

READ: Things you need to know about CLOA Title

Should you invest in a CLOA titled land?

The straight answer to this is unless the CLAO titled is over 10 years old or the current owner or beneficiary had fully compensated the original owner of the land is when it is safe to buy the property. Make sure to do your due diligence and look up the legality of the property you are buying – regardless if it is CLOA titled or otherwise.