July 28, 1995

DAR OPINION NO. 34-95

Atty. Elias Tan

Philippine Theosophical Foundation, Inc.

No. 1 Iba St., Quezon City

Dear Atty. Tan:

This has reference to your request for opinion whether the registration of a Deed of Donation in favor of your client, Philippine Theosophical Foundation, Inc., covering 7 parcels of land is still subject of DAR clearance for purposes of registration with the Register of Deeds.

You state that your client, the Philippine Theosophical Foundation, Inc. is the donee of 31 hectares of lands covered by seven titles situated at Munting Batangas, Balanga, Bataan by virtue of a Deed of Donation dated 22 June 1995 executed by Biotech Fruits Resources, Inc., represented by its President Francisco Chua.

Our reply to your query is that all transfers or dispositions of agricultural lands, like the Deed of Donation mentioned in your letter, must be evaluated by DAR to determine whether or not the same are in conformity with RA 6657 (otherwise known as the Comprehensive Agrarian Reform Law or CARL). Should DAR find the transfer to be in violation of CARL, no clearance for its registration will be issued. With specific reference to the donation subject of your letter, it is in violation of CARL, hence DAR cannot issue the clearance for its registration.

CARL mandates the acquisition and redistribution to qualified beneficiaries of all agricultural lands falling outside the 5-hectare retention of landowners. Moreover, the last paragraph of Section 6 of CARL provides that upon its effectivity (on 15 June 1988), any sale, disposition, lease, management contract or transfer of possession of private lands, executed by the original landowner in violation thereof shall be null and void.

Based on the said legal provision, it is clear that the Deed of Donation is null and void for being in violation of CARL. However, since the Tax Declarations for the 7 properties involved state that 20.0604 has. are "fruit lands" while 11.0521 has. are pasture lands, we advise that you study the attached DAR guidelines on the exclusion from CARL of agricultural lands used for livestock (DAR-Adm. Order No. 9, Series of 1993) to aid you in determining whether under the rules, the 11-hectare portion declared as pasture land may be the subject of an application for exclusion from CARP coverage.

We hope to have enlightened you on the matter.

Very truly yours,

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