September 16, 1994

DAR OPINION NO. 75-94

BUENAVENTURA E. POMIDA

Provincial Agrarian Reform Officer,

DAR Provincial Office

Cebu City

Dear PARO Pomida:

This pertains to your request for opinion regarding the application of the City of Toledo for DAR Clearance for the registration of the sale in its favor of a parcel of land situated at Media Once, Toledo City. Your question is whether or not Toledo City, which presently owns more than 10 hectares of agricultural lands (excluding the area subject of the sale) is covered by the provision in paragraph 1 Section 70 of CARL that the aggregate area of agricultural lands owned by the transferee of an agricultural land inclusive of the land to be acquired shall not exceed the 5-hectare limit provided in said Act. Specifically, you wish to be clarified on whether or not Toledo City, being a government entity, is covered by the said provision of CARL, considering that paragraph I-A-2 of DAR Administrative Order No. 1 Series of 1989 provides that transactions made in favor of the government, DAR and the Land Bank of the Philippines are valid.

The transfer of agricultural land in favor of the government referred to in the aforecited DAR guideline is that made for agrarian reform purposes. Hence, the acquisition by Toledo City of agricultural lands in addition to its present ownership of 10 hectares, if intended to be utilized for its purely proprietary functions, is violative of Section 70 of CARL which prohibits ownership by any person, natural or juridical, of more than the 5-hectare ceiling. It follows that no DAR Clearance for the registration of the transfer can be issued. However, since under Section 19 of RA 7160 (the Local Government Code), a local government unit such as Toledo City may exercise the power of eminent domain, expropriation of the property will be more expedient under the circumstances. There would then be no longer any need for the requested DAR Clearance.

Very truly yours,

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