April 3, 1995

DAR OPINION NO. 14-95

MS. REGINA E. MANGIO

40 Jesus Street

San Francisco Del Monte

Quezon City

Dear Ms. Mangio:

This has reference to your complaint against Messrs. Severino Abela and Vicente Abela for violation of R.A. 6657, particularly for selling their agricultural land located at Barrio Sto. Cristo, San Jose Del Monte, Bulacan with an area of 163,084 sq. m. covered by OCT No. C-4222, before the approval by the DAR of the application for conversion covering said property.

We find no legal basis for declaring the sale of subject property as violative of R.A. No. 6657.

Culled from the Annexes to said complaint are the following: that on 6 May 1992 a Deed of Sale with Mortgage covering subject property was executed by and between Severino Abela and Vicente Abela as vendors, and Palmera Homes. Inc. as vendee; that on 15 May 1992 the DAR issued an Order approving the application for conversion of subject landholding from agricultural to residential; and that on 8 July 1992, title to the landholding [TCT No. T-153253] was issued in the name of Palmera Homes.

A scrutiny of the DAR Order dated 15 May 1992 reveals that the application for conversion was approved on the basis of the favorable recommendation of MARO Conrado Cerdeña and his certification that subject landholding is untenanted; the favorable recommendation of the DAR Legal Division; the favorable recommendation of PARO Erlinda Pearl V. Armada on the grounds that the landholding is untenanted, is idle/open grassland and hilly which is the dominant use and topography of the area surrounding the land, and is within the residential/commercial area; the favorable recommendation of DAR Regional Director Antonio Nuesa, concurring with the recommendations of the MARO and the PARO; the Certification of Regional Director Renato Bulay of the Department of Agriculture that the landholding is "included under miscellaneous land type, already surrounded by subdivisions, therefore classified no longer viable for cultivation"; the Environmental Clearance issued by Director Antonio Principe of the Department of Environment and Natural Resources; and the approval and Locational Clearance issued by HLURB Commissioner Cesar O. Marquez.

The issuance of the DAR Order approving the conversion of the property to residential use on the basis of the favorable recommendations of the DAR, DA, DENR and HLURB officers and the finding of the existence of the requisites for conversion rendered moot and academic the issue raised regarding the validity of the sale of the property. Moreover, we wish to clarify that the sale of 6 May 1992 was not the basis for the transfer of title in favor of Palmera Homes because said transfer could not be legally effected without the DAR Order approving the application for conversion. This must be so because said DAR Order of Conversion is in effect a go-signal for the use of the property for non-agricultural purposes, which further means that so long as said property is developed for the purpose specified in the application for conversion, it will no longer be distributed to farmer-beneficiaries under the Comprehensive Agrarian Reform Program. We wish to stress, however, that DAR will place the property under CARP compulsory coverage should there be failure to implement and complete the development of the area within the specified time, as provided in paragraph XV [b] in relation to paragraph XVI of DAR A.O. 12, Series of 1994.

We hope to have clarified matters with you.

Very truly yours,

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

Copy furnished:

OSEC

Doc. No. 95010201

Mr. Severino Abela

55 Provident Bldg.

Annapolis St., Greenhills

San Juan, Metro Manila

Mr. Vicente Abela

#6 Guevarra St.

Jordan Plain Subdivision

Novaliches, Quezon City

Mr. Manuel B. Villar

President

Palmera Homes

827 Aurora Blvd.

Cubao, Quezon City