October 19, 1995

DAR OPINION NO. 64-95

PARO Felixberto O. Kagahastian

Department of Agrarian Reform

Sta. Cruz, Laguna

Dear PARO Kagahastian:

Anent your query regarding applications for DAR Clearance and your request for advice on the legal action to be taken relative to the registration of transactions involving agricultural lands without DAR Clearance, please be guided by the following:

1.         Since the DAR Clearance issued by your Office signifies that the transaction covered thereby is not in violation of CARL and may therefore be registered in favor of the transferee, you must ascertain whether the property involved falls under CARP coverage or not. If the landholding falls under CARP coverage, the application for DAR Clearance shall be denied, and the property shall be acquired and distributed in accordance with our guidelines.

2.         An application for DAR Clearance involving a property previously sold/transferred and registered in favor of the first transferee without a DAR Clearance shall be processed vis-a-vis the registered owner as of 15 June 1988. If the property sold/transferred falls outside of the retention of said landowner, no DAR Clearance for the registration of the transaction shall be issued, and the property shall be acquired and distributed accordingly.

3.         Neither shall a DAR Clearance be issued if the transferee is found to be the owner of more than the 5-hectare landownership ceiling, including the property acquired, since ownership of more than 5 hectares of agricultural lands is prohibited under Section 73(a) of CARL. This is true even though the landholding is a retained area of the landowner.

4.         Should you establish that a transaction which is violative of CARL has been registered, submit a report to the Office of the Secretary regarding the matter (with certified copies of pertinent documents) in order for legal remedies to be taken. Likewise, coordinate with the ROD in your area so as to prevent the registration without DAR Clearance of transactions involving agricultural lands.

Very truly yours,

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