July 4, 1997
DAR OPINION NO. 77-97
Atty. Sabino M . Cruz
Graft Investigation Officer II
Resident Ombudsman for DENR
Annex Bldg., DENR Compound
Visayas Ave., Diliman
Quezon City
Dear Atty. Cruz:
This has reference to your letter dated 06 May 1997 seeking opinion on whether a landholding with an area of less than a hectare can still be placed under Operation Land Transfer (OLT).
As gleaned from your letter the subject property has an area consisting of seven Thousand Eight Hundred Fifty Three (7,853) square meters, covered by Original Certificate of Title (OCT) No. P-5131 and registered in the name of Isidro Guevarra; that on 29 November 1996, a letter-complaint was filed with the Office of the DENR Resident Ombudsman against some of the DENR Region IV personnel for issuing a plan in favor of Melchor Elchico covering said property already registered in the name of Isidro Guevarra known as Lot No. 4151, Cad. 397-D, Bay Cadastre, Case No. 6 which plan was based from the complainant's land known as Lot No. 1927; and that in connivance with some DAR employees, the subject property is now placed under the agrarian reform law.
Please be informed that the issue as to whether a landholding, with an area less than the retention area under Presidential Decree No. 27, could be placed under the Operation Land Transfer (OLT) is totally dependent on whether the landowner has other separate properties. Specifically, DAR Administrative Order No. 4, Series of 1991 (copy attached) laid down the conditions under which a landowner can exercise the right of retention of either five (5) hectares or seven (7) hectares, respectively, or zero (0) retention, as the case may be.
Under the aforesaid Administrative Order, landowners covered by PD 27 are entitled to retain seven hectares, except those whose entire tenanted rice and corn lands are subject of acquisition and distribution under Operation Land Transfer (OLT). An owner of tenanted rice and corn lands may not retain those lands under the following cases:
a. If he as of 21 October 1972 owned more than 24 hectares of tenanted rice or corn lands, or
b. By virtue of LOI 474, if he as of 21 October 1976 owned less than 24 hectares of tenanted rice or corn lands but additionally owned the following:
— other agricultural lands of more than seven hectares, whether tenanted or not, whether cultivated or not, and provided he derives adequate income therefrom; or
— lands used for residential, commercial, industrial or other urban purposes, from which he derives adequate income to support himself and his family
Said guideline further provides that landowners who filed their applications for retention before 27 August 1985, the deadline set by Administrative Order No. 1, Series of 1985, may retain not more than seven hectares of their landholdings covered by PD 27 regardless of whether or not they complied with LOI Nos. 41, 45, and 52.
Landowners who filed their applications for retention after 27 August 1985 but complied with the requirements of LOI Nos. 41, 45 and 52 shall likewise be entitled to such a seven-hectare retention area.
However, landowners who filed their applications for retention after the 27 August 1985 deadline and did not comply with the requirements of LOI Nos. 41, 45, and 52 shall only be entitled to a maximum of five hectares as retention area.
From the foregoing, 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
Copy furnished:
Gloria J. Fabia
Director, BLAD