December 23, 1996

DAR OPINION NO. 151-96

Mr. Jim G. Fondevilla

Laguna Properties Holdings Inc.

4th Floor, Makati Stock Exchange Building

Ayala Avenue, Makati, Metro Manila

Dear Mr. Fondevilla:

This refers to your request for confirmation whether the certification issued by the PARO is valid to declare the subject properties exempt from CARP coverage and also under P.D. No 27. In reply, please be informed that the Certification issued by the PARO exempting the subject properties from CARP coverage is not sufficient. What the PARO can issue is the Certification/Clearance under A.O. 1 Series of 1989 for purposes of registration of the Deed of Sale of an agricultural land with the Register of Deeds. Note however, that the Certification/Clearance will be issued only upon showing that the subject of the Deed is the retention area of the vendor and that the total landholding that shall be owned by the vendee inclusive of the land to be acquired shall not exceed the landownership ceiling provided in RA 6657.

In order to streamline the issuance of the Exemption Clearance for lands exempted/excluded from CARP coverage, the DAR has issued the pertinent guidelines for these lands outlining the procedures therefor. A. O. No. 6, Series of 1994, provide the guidelines for the issuance of Exemption Clearance based on DOJ Opinion No. 44, Series of 1990, which ruled that all lands already classified as commercial, industrial or residential before June 15, 1988 pursuant to a Municipal/City Ordinance or zoning plan duly approved by the HLURB before June 15, 1988 no longer need any conversion clearance. However, the landowner or his is duly authorized representative of the properties falling under this category still needs an exemption clearance from the DAR. Application for such clearance should be filed with the Regional Office of the DAR where the land is located and the necessary investigation and ocular inspection will be conducted by our field offices and if the requisite requirements are complied the same will be recommended for approval by the Secretary.

With respect to conversion of agricultural land to non-agricultural use upon the effectivity of R.A. 6657 on June 15, 1988, A.O. 12, Series of 1994, provides for the rules and procedures governing conversion of agricultural lands to non-agricultural uses and consolidates and revises all existing implementing guidelines issued by the DAR, taking into consideration other Presidential issuances and national policies related to land use conversion. Under said administrative order conversion may be allowed if at the time of the application, the lands are reclassified as commercial, industrial, and residential in the new or revised town plans promulgated by the local government unit (LGU) and approved by the Housing and Land Use Regulatory Board (HLURB) or by the Sangguniang Panlalawigan (SP) after June 15, 1988 in accordance with Section 20 of R.A. 7160 (Local Government Code), as implemented by M.C. No. 54 and Executive Order No. 72, Series of 1993 of the Office of the President.

With respect to lands exempt from CARP coverage under Section 10 of R.A. 6657, Administrative Order No. 13, Series of 1990, provides that the Regional Director shall approve or disapprove application for exemption from CARP coverage of lands five (5) hectares and below. For lands below fifty hectares the Undersecretary for Legal Affairs shall approve or disapprove the application for exemption and for lands exceeding fifty (50) hectares it is the Secretary who shall approve or disapprove it.

With respect to the exclusion of agricultural lands used for livestock, poultry and swine raising from the coverage of the CARP under A.O. 9, Series of 1993, it is the Regional director who shall prepare the Order of Exclusion or Denial.

With respect to the Exemption/Exclusion of fishpond and prawn farm from the coverage of the CARL, pursuant to R.A. 6657, as amended by R.A. No. 7881, Administrative Order No. 3, Series of 1995, provides that it is the Regional Director who shall order the approval or denial of the application. However, Memorandum Circular No. 27, Series of 1995 suspends the implementation of R.A. 7881 and its implementing rule, pursuant to Supreme Court Resolution dated November 13, 1995 granting the petition of SENTRA et al. for a Temporary Restraining Order. Processing of applications for exemption/exclusion of fishpond and/or prawn farms pursuant to R.A. 7881 and A.O. No. 3, Series of 1995 filed before, on or after November 13, 1995 are to be held in abeyance.

With respect to the exercise of retention rights by landowners under Presidential Decree No. 27 and R.A. 6657 and award to children under Section 6 of R.A. 6657, it is the Regional Director who shall approve or deny the same subject to appeal to the Secretary.

Please be guided accordingly.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA