October 16, 1995

DAR OPINION NO. 61-95

PARO Alexis M. Arsenal

DAR, Luna St., La Paz

Iloilo City

Dear PARO Arsenal:

This is in reply to your query dated 18 September 1995 seeking clarification as to whether a DAR Clearance on land transactions involving fishponds/prawn farms can be issued without the necessity of having the property involved first declared exempted/excluded from CARP coverage. You are confused as to which should prevail, A.O. No. 3, Series of 1995 or A.O. No. 1, Series of 1989.

The answer is that the DAR Order declaring that a property is exempt from CARL coverage is the document needed to support the registration of the transaction involving said property, in which case, there would no longer be any need for a PARO Clearance for said registration.

Take note that RA 7881 amends RA 6657 by declaring that fishponds and prawn farms which satisfy the conditions specified in said law are exempt from CARL coverage. Take note, further, that it is DAR that determines whether or not the conditions for said exemption have been met, on the basis of the guidelines specified in DAR AO 3, Series of 1995. A DAR Order of Exemption from CARL coverage that is final and executory pursuant to said guidelines may be used to support the registration of a transaction involving the property subject thereof, hence, there would no longer be any need for a PARO Clearance for said registration.

Please be guided accordingly.

Very truly yours,

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