April 11, 1995
DAR OPINION NO. 17-95
ATTY . MANUEL LUIS O. LIMPIN
300 M. F. Jhocson Street
Sampaloc, Manila
Sir:
This refers to your request for opinion and possible intervention in connection with two parcels of land with a total area of 21.2876 hectares foreclosed by the DBP situated at Mijares, Dipaculao, Aurora.
You allege that said property was the subject of a Dead of Conditional Sale dated May 14, 1985 in favor of the spouses Gabriel and Trinidad Subad; that on 7 July 1987 the spouses paid the DBP the full purchase price of the land, and pursuant to the provisions of paragraph 17 of the Deed of Conditional Sale, DBP was under obligation to execute in favor of said spouses the Deed of Absolute Sale over subject property; that notwithstanding the foregoing provisions, DBP executed said Deed of Absolute Sale only on 21 June 1990.
With the foregoing as a backdrop, you wish to be apprised on whether the Subad spouses can still transfer in their names title over the subject properties and/or at least exercise the right of retention under the Comprehensive Agrarian Reform Law [R.A. No. 6657 or CARL]. Moreover, you request that the PARO of Aurora be ordered to cease and desist from proceeding with its intended entry and coverage of such properties until after the present controversy is resolved.
We regret that we find no legal basis for granting either of your requests.
It is noted that the allegation of full payment to the DBP of the purchase price by the Subad spouses on 7 July 1987 has not been duly substantiated. Such being the case, and since as of effectivity of CARL on 15 June 1988, title to the properties were still in the name of DBP, the owner for purposes of CARP coverage thereof was still the DBP. Considering further that under Section 7 of CARL, all lands foreclosed by government financial institutions such as the DBP fall under Phase 1 of CARP implementation, and under E.O. 407 all government instrumentalities including government financial institutions are mandated to immediately execute Deeds of Transfer in favor of the Republic of the Philippines as represented by the DAR, it is submitted that we have no recourse but to affirm the position taken by our PARO Felipe Simon that subject properties should now be covered under CARP. The Subad spouses are advised to negotiate with the DBP on the return to them of whatever amount they may have paid.
We hope to have clarified matters with you.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office
Copy furnished:
Dir. Percival C. Dalugdug
DAR Region IV
Pasig, Metro Manila
PARO Felipe Simon
OIC — PARO II
Provincial Agrarian Reform Office
Baler, Aurora
Mr. Herminio C. Cabral
Acting Branch Head
DBP, Baler Branch
Baler, Aurora
Mr. Gabriel Subad
Barangay Ditumabo
San Luis, Aurora