September 13, 1994

DAR OPINION NO. 71-94

Atty. Oscar B. Glovasa

66 M. Torralba St.

Tagbilaran City

Dear Atty. Glovasa:

This has reference to your letter dated 18 May 1994 seeking opinion as to whether a domestic corporation is allowed to purchase untenanted private agricultural lands of more than five hectares to be developed into productive agricultural farms.

The answer to your query is in the negative. Republic Act No. 6657 (the Comprehensive Agrarian Reform Law or CARL) mandates the acquisition and redistribution to qualified beneficiaries of all agricultural lands outside the 5-hectare retention of landowners. Moreover, Section 6 of said law provides that no person may own or retain, directly or indirectly, any agricultural land in excess of five hectares. The term "person" includes both natural and juridical persons. The last paragraph of the same Section clearly provides that upon the effectivity of CARL on 15 June 1988, any sale, disposition, lease, management contract or transfer of possession of private lands executed by the original landowner in violation thereof shall be null and void. Likewise Section 73 of CARL prohibits the ownership or possessions for the purpose of circumventing the provisions of this Acts of agricultural lands in excess of the total retention limits or award ceilings by any persons natural or juridical, except those under collective ownership by farmer-beneficiaries.

It is clear from all of the foregoing that the purchase by any person, natural or juridical, of agricultural lands outside of the 5-hectare retention is null and void for being violative of CARL.

We hope to have clarified the matter for you.

Very truly yours,

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

Copy furnished:

Atty. Nilo O. Maniwang

Chief, Legal Division

DAR, Tagbilaran City