December 13, 1996

DAR OPINION NO. 114-96

Mr. Agustin C. Dizon

167 Wilson St.

San Juan, Metro Manila

Dear Mr. Dizon:

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

a)         Does the tenant have the right to sell his/her tenancy rights without the consent of the landowner?

b)         What is the status of the buyer of his rights by virtue of the sale and what are his obligations to the landowner? The buyer of said rights intent to use it for poultry or for residential purposes of his brothers and sisters.

c)         Can the buyer of the tenancy rights compel the landowner to donate or sell the property to him?

d)         Can the landowner demand the same price as consideration in case he or she decide to sell said portion to third person?

You state that the subject property has an area of twelve (12) hectares, more or less, covered  by TCT No. 118426-R, co-owned by Concepcion Dizon-Enciso, Ma. Paz Coronel and Isabel Coronel and situated at Babo-Pangulo, Porac, Pampanga; that a portion of the said landholding is planted with palay, other agricultural crops and fruit bearing trees; and that the tenant of the said landholding has sold her tenancy rights in favor of Father Luis Lagman for and in consideration of P60,000.00 to P100,000.00

As regards your first query, the tenant cannot legally sell his tenancy right as such to another person. As a tenant, he has the duty under Section 26 of R.A. 3844, as amended (Code of Agrarian Reform) to cultivate and take care of his farm, growing crops and other improvements on the landholding as a good father of a family and perform all the works thereon. If he sells the right as tenant and allows another person to cultivate the farm, the same would constitute abandonment of the landholding without the knowledge of the agricultural lessor which could be a good ground for ejectment. Such act of the tenant can be viewed as desertion of his right to cultivate the landholding.

As regards your second query, the buyer who acquires tenancy rights from the lessee without the consent and knowledge of the landowner does not make him a bonafide tenant entitled to security of tenure under R.A. 3844. In other words, his rights are nothing as he merely stepped into the shoes of the lessee who cannot exercise rights higher or superior to that of the lessor. Briefly, his status is in consonance with the legal truism that "the spring cannot rise over its source". However, if the agricultural lessor eventually recognized the person to whom possession and cultivation of the farmlot was transferred, it is possible that his stay thereon has ripened into tenancy.

Moreover, the brothers and sisters of said buyer cannot devote subject landholding for poultry or residential purposes. As the acquisition of said tenancy rights is tainted with illegality, the same cannot be validated by another illegal act by devoting it to poultry or residential purposes.

As regards your third query, the buyer of the tenancy rights has no right whatsoever to compel the landowner to donate or sell the subject property to him. Since the right of disposition is an attribute of ownership, the exercise thereof depends entirely on the volition of the landowner himself. The right of pre-emption or redemption conferred upon a lessee to buy or redeem the property is not available to buyer of tenancy rights because tenancy status cannot be bargained away for consideration without the consent and knowledge of the landowner.

As regards your last query, as held by the Supreme Court in the case of "B.H. Berkenkotter & Co. vs. Court of Appeals" (G.R. No. 89980, December 14, 1992), the fixing of the price of landholding may vary depending on several factors attendant thereto, to wit: cost of acquisition, current value of like properties, its actual or potential uses, and in the particular case of lands, their size, shape, location and the tax declarations thereon. As such, the price previously charged by Virginia Serrano in selling her tenancy rights should not stand as the basis in fixing the price thereof.

We hope to have clarified the matters with you.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA