June 5, 1997
DAR OPINION NO. 66-A-97
Atty. Fidela Y . Vargas
Rm. No. 5 Messani, Marinas Bldg.
2228 Rizal Ave., Olongapo City
Dear Atty. Vargas:
This has reference to your letter dated 19 May 1997 requesting for clarification on the following queries, to wit:
1. Whether or not your property which is a residential lot located at San Isidro, Bulan, Sorsogon could be included under the coverage of the Comprehensive Agrarian Reform Program of the government pursuant to R.A. No. 6657;
2. Whether or not your land covered by homestead could be included in the coverage of R.A. No. 6657, otherwise known as the Comprehensive Agrarian Reform Law;
3. Whether or not the donations you had executed involving some of your lots are exempted from the coverage of R.A. No. 6657 or the Comprehensive Agrarian Reform Law;
4. Whether the shares of your two (2) half brothers, whom you want to recognize without any court litigation could be exempted from the coverage of CARP;
5. What is the number of hectares that may be subject to land reform coverage; and
6. Whether or not your plan to form a corporation with your tenants to put up an agricultural school is allowable.
Anent your first query, please be informed that your residential lot is excluded from the coverage of R.A. No. 6657 or the Comprehensive Agrarian Reform Law (CARL). Section 4 of the above-mentioned law provides for the scope thereof wherein only public and private agricultural lands including other lands of the public domain suitable agriculture are covered. Hence, only agricultural lands may be put under the coverage of the CARP. Since your lot is residential, the same is excluded from CARP coverage.
Anent your second query, Section 6 of R.A. No. 6657 in relation to DAR Memorandum Circular No. 4, Series of 1991 provides for two (2) conditions that must be met in order that agricultural lands covered by homestead may be exempted from CARP coverage. The first condition is that the original homestead grantee or his/her direct compulsory heir(s) still own the land at the time of the effectivity of R.A. No. 6657 on 15 June 1988. Secondly, the original homestead grantee or his/her direct compulsory heir(s) was cultivating the land as of 15 June 1988 and continues to cultivate the same. Both aforesaid conditions must concur in order that your homestead lands may be exempted from CARP coverage, otherwise, they shall be covered.
With respect to your third query, Section 6 of R.A. No. 6657 provides that upon the effectivity of said law (15 June 1988), transfer of possession of private lands executed by the original landowner in violation of the CARL shall be null and void. Furthermore, in all transactions involving the transfer or sale of agricultural lands to another, the issuance of DAR Clearance is an essential requisite in order that it may be considered a valid transfer. This is in view of DAR's policy to protect the rights of tenants and other farmworkers. Moreover, Section 70 of R.A. No. 6657 allows the sale or disposition of agricultural lands retained by a landowner provided that the total landholdings that shall be owned by the transferee thereof inclusive of the land to be acquired shall not exceed the landholding ceiling of five (5) hectares. Applying the aforecited provisions of law to your query, the total agricultural landholdings of the donee (transferee) must be determined such that if his total agricultural landholdings exceed the 5-hectare ceiling, the excess shall be put under the coverage of CARP, otherwise, the same is excluded, but in any event DAR Clearance must nonetheless be secured.
Anent your fourth query, it is submitted that as transferees, the total agricultural landholdings of your two (2) half brothers must be separately determined. If by virtue of the transfer of properties the total agricultural landholdings of each exceeded the landholding ceiling of five (5) hectares allowable under R.A. No. 6657, the excess shall be subject to CARP coverage, if not, the same shall constitute as their retained areas, respectively.
With regard to your query as to the number of hectares that may be subject to land reform coverage, pursuant to R.A. No. 6657 and P.D. No. 27, only five (5) hectares and seven (7) hectares, respectively, of one's total agricultural landholdings are allowed to be retained by the landowner while the excess shall be covered.
Anent your sixth and last query, please be informed that your plan to form a corporation with your tenants to put up an agricultural school will in effect to conversion or change of the current use of your piece of land into some other use wherein it is mandated by Executive Order No. 129-A in relation to DAR Administrative Order No. 12, Series of 1994 that the DAR shall approve or disapproved the conversion of agricultural lands into other land uses. Accordingly, you are still required to file an application for conversion before the DAR.
We hope to have clarified the matters with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning