March 17, 1994

DAR OPINION NO. 22-94

Mr. Cristituto Diolosa

Barangay Compania-San Juan

Molo, Iloilo City

Dear Mr. Diolosa,

This has reference to your letter dated 10 March 1994 requesting the opinion of this Office on the following queries:

1)        Can EP recipients sell their lands five years from receipt thereof and upon full payment of the amortization?

2)        Is there a need to revert the EP into a regular title in order that a new title could be issued in favor of the buyer?

3)        In case reversion is mandatory, does the PARAD/DARAB have jurisdiction to hear and decide on the petition?

Anent your first query, the last sentence of Section 6 of E.O. 228 clearly provides that ownership of lands acquired by the farmer beneficiary may be transferred after full payment of the amortizations. However, although the transfer of OLT acquired lands is allowed after full payment of amortizations, the following should be noted:

a)         The total agricultural land owned by the transferee, inclusive of the land to be acquired, shall not exceed the 5-hectare landownership ceiling provided in RA 6657;

b)        No conversion of the farmholding for purposes other than agricultural shall be undertaken without a DAR Order of Conversion; and

c)         Under Administrative  Order No. 20,  Series of 1992 of the Office of the President, all irigated and economically irrigable lands covered by irrigation projects with firm funding commitments shall be non-negotiable for conversion.

As regards the second and third queries, it is believed that there is no legal requirement for the reversion of the EP to an ordinary title prior to the issuance of a new title to the transferee, so long as it is shown that the above-mentioned requirements have been complied with.

We trust we have clarified matters for you.

Very truly yours,

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