September 13, 1994

DAR OPINION NO. 72-94

Atty. Pedro S. Castillo

Mezzanine Floor, Quimpo Bldg.

Rizal Street, Davao City

Dear Atty. Castillo:

This has reference to your letter of 8 August 1994 requesting opinion on the successional rights of the heirs of a deceased landowner over an 11.3847-hectare agricultural land.

As stated in your letter, landowner Manuel Saez died on 29 August 1988, leaving behind as heirs his six brothers and sisters. In December 1993, said heirs sold the property to three persons, and applied for a DAR Clearance for its registration. The PARO of Davao del Sur denied said application on the ground that since the landowner died after the effectivity of RA 6657 (the Comprehensive Agrarian Reform Law or CARL) the property falls under CARL coverage and the sale thereof to third persons is void under Section 6 of said Act. Your letter is a reaction to the denial of your client's request for DAR clearance.

We regret that we cannot reconsider said denial. Section 6 of RA 6657 provides the following:

"Upon the effectivity of this Act, any sale, disposition, lease, management contract or transfer of possession of private lands executed by the original landowner in violation of this Act a shall be null and void. Provided, however, that those executed prior to this Act shall be valid only when registered with the Register of Deeds within a period of three (3) months after the effectivity of this Act."

CARL took effect on 15 June 1988 and the mandate to acquire and distribute agricultural lands outside of the 5-hectare retention of landowners came into force upon its effectivity. Since deceased landowner Manuel Saez was the owner of the 11.3847-hectare agricultural land as of 15 June 1988, and assuming that the same was his only property, only 5 hectares thereof could be retained by him while the rest (consisting of 6.3847 hectares) fall under CARL coverage and should therefore be redistributed to qualified farmer-beneficiaries. It follows that the sale of the property is void for being in violation of CARL.

Furthermore, since under Article 777 of the Civil Code of the Philippines, the rights to the succession are transmitted from the moment of death of the decedent, the heirs succeeded to the properties of the deceased, only from the moment of his death on August 29, 1988. As to that portion of the property falling under CARP coverage, what the heirs are entitled to is payment for the compensation on the land, succession to which shall be governed by the pertinent provisions of the Civil Code.

As regards the retained area, Section 70 of CARL provides that its sale or disposition shall be valid as long as the total landholdings that shall be owned by the transferee thereof inclusive of the land to be acquired shall not exceed the 5-hectare limit.

Anent your allegation that the property is within the industrial area per approved Municipal Comprehensive Development Plan and Zoning Ordinance of CY 1991-2000 of Sta. Cruz, Section 20 (paragraph e) of RA 7160 (The Local Government Code) provides that said reclassification does not have the effect of repealing, amending or modifying in any manner the provisions of RA 6657. Simply stated, the acquisition and redistribution of the property to qualified beneficiaries pursuant to CARL shall proceed and not be affected by said reclassification.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN

Assistant Secretary

Legal Affairs Office

Copy furnished:

Clifford C. Burkley

Re: Doc. No. 94-08-0383

The PARO

DAR Provincial Office

Digos, Davao del Sur

The MARO

DAR Municipal Office

Sta. Cruz, Davao del Sur