July 22, 1994
DAR OPINION NO. 48-94
MARO Alberto K. Lopez
Department of Agrarian Reform
Lupao, Nueva Ecija
Dear MARO Lopez:
This answers the following queries you have raised:
1. Is it necessary for an owner-cultivator to apply for the conversion to residential purposes of 500 sq.m. of his 2-hectare agricultural land?
2. Can a property exempted from CARP coverage because it is under livestock production be subdivided among the landowner's children to the limits provided under CARL?
3. The landholdings of a certain landowner were fully covered under P.D. 27. Is the same landowner qualified as a farmer-beneficiary under RA 6657 on another landholding?
4. What is the status of the case "Gonzales v. Sigre"? The landowners refuse to cooperate because of the Court of Appeals decision regarding DAR Memorandum Circular No. 6, Series of 1978.
5. Does the DARAB have jurisdiction to cancel registered EPs and order the reallocation thereof to other FBs? Is the reallocation of the farmlot legal and not contrary to the provision in PD 27 that title to land covered thereby is non-transferable except by hereditary succession or to the government?
6. Regarding Transfer Action, or lots with problems of possession/ownership, can we generate Emancipation Patents in the name of the original farmer-beneficiary and resolve the problem as another issue?
The answer to your first query is in the affirmative. Landowners are required to apply for DAR Conversion Order to enable them to legally convert a portion of their agricultural lands to residential purposes. The intent of said requirement is to allow the DAR to scrutinize the proposed conversion and ensure that the same is not done to circumvent the mandate of CARL to redistribute the property to qualified beneficiaries.
An agricultural land established as falling outside of CARP coverage pursuant to DAR Administrative Order No. 9, Series of 1993 because it has been directly, exclusively and actually used for livestock purposes may be subdivided among the landowner's children. However, should the property be subsequently used for agricultural purposes, the DAR shall make a determination of its coverage under CARP.
With respect to the third query, the answer is in the affirmative, provided he meets the qualifications of a beneficiary under CARL, the minimum of which are that he has the willingness, aptitude and the ability to make the land as productive as possible and that he is landless (own less than 3 hectares of agricultural lands). Moreover, the order of priority under Section 22 of RA 6657 must be observed.
Regarding the fourth query, Case No. CA-GR SP No. 28906 entitled "Lilia Gonzales vs. LBP and Ernesto Sigre" is presently on appeal with the Supreme Court. You are advised to exert utmost effort and persuasion to gain the cooperation and support of landowners pending the final decision of the Supreme Court in said case.
Anent the fifth query, Administrative Order No. 2, Series of 1994 (copy attached) provides that registered EPs/CLOAs whether distributed or not may only be corrected or cancelled by order of the Provincial or Regional Adjudicator which has jurisdiction over the property. The jurisdiction of the DARAB to cancel EPs/CLOAs is expressly provided in Rule II Section 1(f) of the DARAB New Rules of Procedure.
Anent the reallocation of the farmlot, since the same is done by order of the government and in favor of a qualified beneficiary, it is not contrary to P.D. 27. Note that the transfer in favor of the government, which is allowed under PD 27, is purposedly intended to enable it to reallocate the farmlot involved to a qualified FB.
Anent the last query, should there be a question on the ownership of the property, the general rule is that the same must first be resolved before the property can be placed under OLT coverage. This is because we must first ensure that the property involved does not fall within the landowner's retention, taking into consideration P.D. 27 and LOI 474. However, if all of the other requisites for OLT coverage are present (namely: the property is private agricultural land; is tenanted without any question on tenancy raised by either party claiming ownership; and is primarily devoted to rice/corn) and by the are of the property (such as when it is more than 24 hectares) EPs may proceed, with the compensation to be deposited in trust for the person finally determined to be the owner thereof.
Please be guided accordingly.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary
Legal Affairs Office
Copy furnished:
USEC Jose Noel D. Olano
Field Operations and Support Services
DARCO, Diliman, Quezon City