March 22, 1995

DAR OPINION NO. 13-95

MEMORANDUM

TO                :     Dir. Alejo V . Duque
                           DAR, Ecoland, Davao

SUBJECT    :     Request for approval of sale
                            of a parcel of land covered by
                            Homestead Patent

Referred to this office for approval is the request of Mr. Marcial S. Lozada, Manager of Katipan-Isa Development Cooperative, for the transfer in favor of said Cooperative of the 2.4-hectare farmlot within the Tibal-og, Sto. Tomas. Davao Settlement site awarded to Jose Esmaya. Attached to the request is the Deed of Absolute Sale covering said farmlot executed by and between Jose Esmaya as vendor and the Cooperative thru Marcial Lozada, as vendee. Mr. Lozada states in his request that the farmlot will serve as a site for a grains complex that will benefit not only its members (some of whom are also CARP beneficiaries) but also the settlers in the nearby community.

It is submitted that the transfer of the farmlot within a settlement site in favor of a cooperative may be favorably considered,  provided that the following are duly established:

1.)       That the cooperative is authorized under its Articles of Cooperation to engage in the business for which the lot is to be used;

2.)       That the cooperative has financial capability to engage in said business;

3)        That the intended use of the farmlot is agricultural in nature or will benefit the settlers and CARP beneficiaries within the area; and

4)        That the area to be transferred should correspond to the intended use.

To enable us to make a judicious evaluation of the request for transfer, please cause an investigation and ocular inspection to determine the authority and financial capability of the Cooperative to engage in the business intended, without which the transfer cannot be approved  (that is, these are basic requirements for the transfer); whether or not the grains complex will indeed benefit the settlers and CARP beneficiaries in the area; the actual area needed to accommodate the grains complex; and such other matters as will aid us in deciding thereon .

Please submit your report and recommendation as soon as possible.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office

Copy furnished:

Marcia S. Lozada

Katipan-Isa Development Cooperative

Sitio Masagana, New Katipunan

Sto. Tomas, Davao

OSEC

Doc. No. 93110662