December 23, 1996

DAR OPINION NO. 150-96

Atty. Erlando A. Abrenica

General Counsel

Atlanta Land Corporation

Suite 204, Goldhill Tower

No. 5 Annapolis St., Greenhills

San Juan, Metro Manila

Dear Atty. Abrenica:

This refers to your letter of 24 July 1996 seeking clarification on whether the Registry of Deeds could undertake the immediate transfer of title of the properties mentioned in your letter in the name of Atlanta Land Corporation pending the issuance of a DAR Clearance for exemption.

While it might be said that the subject landholding is beyond the coverage of the Comprehensive Agrarian Reform Law in view of DOJ Opinion No. 44, Series of 1990, the exemption is limited only to the acquisition and distribution of the land. This means that the DAR has still the right to implement the other components of the program, e.g., leasehold and the Integrated Social Forestry Program, where applicable. It is for this reason that a DAR clearance for exemption is still required. Moreover, please note that in all transactions involving the transfer or sale of agricultural land to another, the issuance of a DAR Clearance is an essential requisite in order that it may be considered a valid transfer. This is so in view of the DAR's policy to protect the rights of tenants and other farmworkers who may be displaced therein.

It is therefore submitted that the Registry of Deeds shall not cause the immediate transfer of the title pending the issuance of the Exemption Clearance from the DAR.

We hope to have clarified you on the matter.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA