May 25, 1995
DAR OPINION NO. 22-95
MR. RONALD O. AMBROSIO
Assistant Vice-President
Development Bank of the Philippines
Makati, Metro Manila
Dear Mr. Ambrosio:
This is in connection with your letter dated February 3, 1995 requesting for the exemption and the withdrawal from CARP coverage of the properties acquired by the Development Bank of the Philippines consisting of five (5) parcels of land with a total area of 35.2659 hectares located at Sta. Cruz (Macabaclay), Gapan, Nueva Ecija, which were included in the lands transferred by the DBP to DAR per Deed of Transfer dated August 14, 1990.
You state that subject properties were sold to Mr. Danilo C. Pantano per Deed of Conditional Sale dated 7 October 1986; that the full purchase price for the property was remitted to the DBP on July 17, 199; and that transfer of ownership in favor of Mr. Pantano has not been effected in view of the transfer of the properties to DAR.
Please be informed that the landholdings involved squarely fall under Section 4 of R.A. 6657 and are subject to redistribution to qualified beneficiaries pursuant to said law, hence, the instant request for exemption from CARL coverage cannot be granted.
Upon the effectivity of R.A. 6657 on 15 June 1988, the five parcels of land subject of your letter were the properties of DBP. Although said properties are covered by the Deed of Conditional Sale in favor of Mr. Pantano, ownership thereof remained with DBP since their transfer to the vendor was subject to a condition — that of full payment. Moreover. Section 7 paragraph 2 of CARL includes in Phase 1 of CARP implementation all lands foreclosed by government financial institutions, such as the lands in issue.
Thank you for communicating with us and we hope that we have enlightened you on the issue raised.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office
Copy furnished:
Mr. Danilo C. Pantano
Room 505, Mirasol Building
1400 Taft Avenue
Ermita, Manila