December 13, 1996

DAR OPINION NO. 111-96

Atty. Eladio S. Pasamba

4th Floor, CDC Building

1195 Ma. Orosa St.

Ermita, Manila

Dear Atty. Pasamba:

This has reference to your letter seeking opinion on the queries posed therein, to wit:

a)         Whether or not a parcel of land which has been acquired by virtue of a Certificate of Land Ownership Award (CLOA) may be sold or alienated after its use has been converted to a non-agricultural purpose.

b)         Whether or not there is a need for a DAR Conversion Clearance for the purpose of building a road within the premises of an agricultural parcel of land.

The answer to your first query is in the affirmative. While Section 27 of R.A. 6657 (Comprehensive Agrarian Reform Law) expressly provides that "lands acquired by beneficiaries under this Act may not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the LBP or to other qualified beneficiaries for a period of ten (10) years", it is submitted that the aforecited prohibition apply only if the subject property still retains its agricultural character. This is so because after the land has been converted, the same ceases to be agricultural over which the DAR has no more jurisdiction. This interpretation is in consonance with the legal maxim in statutory construction that "when the reason of the law ceases, the law ceases".

On the other hand, Section 65 of R.A. 6657 expressly provides for two grounds under which the DAR may authorize the reclassification or conversion and disposition of agricultural land awarded pursuant to said law, to wit: when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have a greater economic value for residential, commercial or industrial purposes. Hence, if it is adequately proven that either of said grounds exists, and the DAR authorizes the conversion of the land after the lapse of five (5) years from its award pursuant to said Section 65, the best thereof would already be non-agricultural, and the prohibition against disposition would no longer apply.

Anent your query on whether Conversion clearance is still necessary for the purpose of building a road within an agricultural land, the answer is in the affirmative. Building said road is an act of conversion because it would change the use of the land from agricultural to non-agricultural, albeit the same would likewise facilitate the transport of agricultural products. Prior DAR Approval must be sought when a portion of agricultural land is intended to be used as a road, to safeguard against indiscriminate land use conversion to the detriment of agricultural production.

We hope to have clarified matters with you.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA