July 1, 1997
DAR OPINION NO. 70-97
Atty. Wilfredo T . Garcia
Cabagnot, Subido, Garcia and Garcia Law Firm
Suite 318 FEM II Building, Aduana St.
Intramuros, Manila
Dear Atty. Garcia:
This has reference to your follow-up letter dated 05 June 1997 seeking opinion on whether an awarded land covered by Emancipation Patent (EP) be the subject of a contract of sale?
As gleaned from your letter, the subject property has an area of Seventeen Thousand One Hundred Ninety (17,190) square meters situated at Barangay San Juan, Taytay, Rizal; that said property is covered by Emancipation Patent No. A-358752 and registered in the name of Mrs. Dolores De Leon; and that your client, Mrs. Aurora Bacani, is contemplating to buy the subject landholding but she is in quandary whether she can validly acquire said agricultural land covered by Emancipation Patent.
Please be informed that awarded lands covered by Emancipation Patents (EPs), undoubtedly, can be the subject of a contract of sale. As elucidated by the Supreme Court in the Case of Engracia Vinzons-Magana vs. Hon. Conrado Estrella, et al., 201 SCRA 536, the issuance of Emancipation Patent confers on the farmer-grantee a vested right of absolute ownership in the landholding — a right which has become fixed and established and is no longer open to doubt and controversy. Thus, Emancipation Patent is a proof of ownership which can be the subject of a contract of sale in the exercise of one's right of ownership without violating the prohibitions embodied in Section 27 of R.A. No. 6657 (Comprehensive Agrarian Reform Law) relative to sale or disposition of awarded lands for a period of ten (10) years from their award because said provision of law solely applies to awarded lands under R.A. No. 6657 covered by Certificates of Land Ownership Award (CLOAs) and not to PD 27 lands covered by EPs.
Moreover, DAR Administrative Order No. 08, Series of 1995 (copy attached) further supports the view relative to sale or disposition of awarded lands under P.D. No. 27. Specifically, transfer of awarded lands under P.D. No. 27, as amended by Executive Order No. 228 may be allowed, provided the following shall be observed:
a) that the productivity of the land shall be maintained;
b) that the buyer will not exceed the landowner ceiling provided by law; and
c ) that the ownership ceiling of five ( 5 ) hectares shall be imposed.
You further alleged that the DAR. has subsequently approved the conversion of the land's classification from agricultural to residential. This has to be substantiated. Concomitantly, it bears stressing at this juncture that under Administrative Order No. 20 of the Office of the President, it expressly provides that the following shall not be subject to and are non-negotiable for conversion: 1) all irrigated lands where water is available to support rice and other crop production, and all irrigated lands where water is not available for rice and other crop production but are within areas programmed for irrigation facility rehabilitation by the Department of Agriculture and National Irrigation Administration; and 2) all irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion.
From the foregoing, we hope to have clarified the matter with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning