August 22, 1994

DAR OPINION NO. 59-94

MR. CONRADO GUEVARA

General Manager

Mayon Realty, Inc.

Dear Mr. Guevara,

I would like to respond to your letter dated July 29, 1994, wherein you posed several questions regarding your property now subject of VOS.

You have inquired whether you could execute a Contract of Lease over the property since no valuation has yet been made and there are still standing crops to be harvested, according to your explanation.

Please be informed that under Section 28 of RA 6657, the landowner is given ample time to harvest standing crops at the time the DAR takes possession of the property. In other words, even if the title has already been transferred to the Republic of the Philippines, the owner shall be given ample time to harvest the crops.

I believe that if the lease contract is precisely to exercise the right to harvest said crops, then this will not be in violation of the law. However, a clearance to this effect has to be secured from our Provincial Officer, pursuant to Adm. Order No. 1, s. 1989. I also suggest that the lease contract would contain a provision that once the title is transferred in the name of the Republic, the lease contract shall expire within three months from said date. In this case, the mandate of Sec. 28 will now be fulfilled.

Regarding the realty taxes, the responsibility to pay taxes of the farmers only occurs when they are already the title owners. In the meantime, I am afraid that the responsibility still falls on your shoulders.

I hope this advisory will be useful for your purposes.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN
Assistant Secretary

cc:    LRSD

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