December 23, 1996
DAR OPINION NO. 148-96
Mr. Simplicio A. Palanca
Reclamation Area
Bacolod City
Dear Mr. Palanca:
This has reference to your letter dated 4 December 1996 addressed to the Department of Agrarian Reform seeking opinion relative to the issuance of DAR Clearance to effect the transfer of title in your name.
You state that the subject fishpond has an area consisting of 19 lots with three (3) hectares each or an aggregate area of fifty-eight (58) hectares, situated at San Dionisio, Iloilo as certified by PARO Alexis M. Arsenal of Iloilo; that sometime in June 1995 said property was sold to you by its previous owner Maria Palanca Vda. de Corona; and that as result of the alleged sale you are now seeking the registration of said property as a transferee, however, the Register of Deeds of Iloilo refuse to act on your request since no DAR Clearance has yet been issued by the DAR.
Please be informed that DAR Clearance signifies that the transaction does not violate R.A. 6657 and its implementing rules and regulations. Specifically, its issuance is a manifestation that the transaction does not violate R.A. 6657 on registration and therefore, registration in the name of the transferee should eventually follow as a matter of course. The compliance of DAR Clearance prior to registration is a mandatory requirement that its compliance cannot be left to the discretion of the parties nor can it be dispensed with at their own violation considering that it serves as a safeguard against possible circumvention of R.A. 6657.
Although prawn farms and fishponds are exempt from CARP coverage by virtue of the express provision of Section 2 R.A. 7881, the constitutionality of the aforecited law has been assailed before the Supreme Court by Sentro Para Sa Tunay na Repormang Agraryo (SENTRA) Foundation. In connection with this Petition, the Supreme Court on 13 November 1995 issued a RESOLUTION granting the prayer of petitioners SENTRA et al. for a Temporary Restraining Order which eventually was the basis for the promulgation of Memorandum Circular No. 27, Series of 1995 suspending actions on applications for exemptions.
We hope to have clarified you on the matter.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA