6 Things You Need to Know Before Buying an Agricultural Land in the Philippines

Complete Guide for Filipinos Planning to Invest in a Farmland 2025

If you’re thinking of investing in a farmland, there are some important things you need to know before you cash out. Due diligence for land purchase will help protect your agribusiness investment as you venture in farmland ownership in the Philippines. Land classification and DAR clearance are only a few things to consider before you buy an agricultural land. Read on to find out the six factors when purchasing a land property to make an informed choice.

1. CLOA Title

The first thing you need to do is determine whether the title is under CLOA or not. If so, there’s a restriction period for CLOA titles which is 10 years. Therefore, the seller cannot transfer it to you within the restriction period. You can check the encumbrances to find out when the CLOA was registered in the Registry of Deeds. In addition, it’s also important to confirm that the property doesn’t have any liability with the LandBank.

2. Protected Land

Is the agricultural property under protected land category? If yes, it’s not Alienable and Disposable which means it’s only under tax declaration and can’t be registered under your name in the title. If it’s titled, however, there are so many restrictions and permissions you need before you can utilize the farmland. The permissions are given by the Protected Area Management Board. In case the property received a title after the declaration that it’s a protected land, it might be a void title. Forest land, watershed, and other protected lands cannot be used for living purposes.

3. No Titled Road Access

This one is difficult to check because it’s not indicated under the encumbrances or annotation in the title. However, there’s a way to check if the property has no road access. The problem with this is that, you will need to pay to the neighboring lot owner so you can pass through their property. It’s also not advisable to loan money from the bank to pay for this access because of its low appraised value.

4. Long-Term Tenants

If there are tenants in the farmland for more than 20 years, it will be difficult to acquire the property. Basically, if they are under CARP and qualified ARB, they have the right to own the land in the future. But if the agricultural land is not under CARP, you still can’t eject the tenants even if you’ve already bought the property.

5. More Claimants

If there are so many people claiming their rights to the property, you might want to find another seller. You can see this under the encumbrances at the back of the title. There are many different types of claimants, including adverse claims and lis pendens.

6. Down Payment or Reservation Fees

Asking for down payment or reservation fees is also a sign of fraud in real estate transactions. Do not engage in any agents who ask for money upfront before you can check the property.

Final Thoughts

Buying agricultural land in the Philippines is a major investment that requires both legal awareness and practical evaluation. Make sure to do your due diligence to verify the title and legal clearances before buying any property. If you want to check out some Baguio condominiums for sale, just log onto our official website REALS.PH for exclusive listings.