November 14, 1994

DAR OPINION NO. 89-94

    MEMORANDUM

    TO                :     MARO Ofelia O. Hernandez
                                                  DAR, Pangantucan, Bukidnon

    SUBJECT    :     Queries relative to homelots within the Bukidnon Settlement Project presently occupied by the Our Lady of Fatima High School

This has reference to your request for opinion on the following queries, to wit:

a)         Who are entitled to the issuance of CLOA's over the homelots in the resettlement area — the religious institution which has been in possession thereof, or the former occupants who have either donated, transferred or conveyed their rights over their homelots in favor of said institution? Would the award in favor of the religious institution based on actual occupancy be legally tenable?

b)        Is there any legal problem regarding the use of the homelots for educational rather than for residential purposes?

Records show that a Certificate of Allocation dated 20 October 1983 was issued in favor of the Our Lady of Fatima High School covering Lot No. 3, Blk. 8 of subdivision plan Csd 9813-D situated at Brgy. Dagumbaan, Maramag, Bukidnon: A typewritten note on said Certificate of Allocation states that the same cancels the allocation in favor of Leopoldo Quirong.

Other transfers of lots within the Bukidnon Settlement Project were made in favor of the same school, as follows:

Instrument                  Date                   Blk. No. Lot No.       Area             Transferor

1)   Deed of                   19 Dec. 1985    11              3          556 sq. m. Marlyn Tapdasan

      Donation

                                                                                 4          520 sq. m. Patricia Remotigue

                                                                                 5          520 sq. m. Roberto Seva

                                                                                 6          520 sq. m. John Perez

                                                                                 8(?)      520 sq. m. Adoracion Benlot

                                                                                 8(?)      520 sq. m. Carmen Portoza

                                                                                 9          520 sq. m. Serena Maraviles

2)   Deed of               1990                     —              —        600 sq. m. Lamberto Rasula

      Donation

3)   Transfer of                4 February      11              2          600 sq. m. Rodolfo

      Rights                  1987                                                   Camannong

4)   Deed of                   16 Nov. 1989   —              —        600 sq. m. Jacobo Ricarte and

      Exchange                                                                        Emiliana Ricarte

                                                                                             (in exchange for 556 sq. m.

                                                                                             Blk. 11, lot 3 mentioned in #1

                                                                                             above)

5)   Deed of      April 1990                     —              —        500 sq. m. Alfonso Laguna

      Exchange                                                                        (in exchange for 600 sq. m. of

                                                                                             Lot # 34, Blk. #10

                                                                                             CSD-9813-D)

You state that the Our Lady of Fatima High School has taken possession of said lots following said transfers and has introduced improvements and constructed four school buildings (consisting of 9 classrooms and 1 library) on the property. The school representative, Sr. Joy Cajes, MCM, has manifested the desire for the school to be issued a Certificate of Land Ownership Award covering the lots aforementioned.

Under DAR Administrative Order No. 9, Series of 1989, the transfer of rights by the allocatee without the written consent and approval of the DAR Regional Director concerned constitutes a ground for the cancellation of the allocation. Considering that the original occupants transferred their lots in favor of the Fatima High School without the consent of DAR, they are disqualified from being awardees of said lots. Neither can a CLOA be issued in favor of the religious institution covering the lots transferred to it because in both the 1973 and 1987 Constitutions (the Constitutions respectively in force at the time the institution took possession of the lots by virtue of the transfers), private corporations and associations are disqualified from holding alienable lands of the public domain except by lease for a period not exceeding 25 years, renewable for not more than 25 years. (Article XIV, Sec. 11, 1973 Constitution; Article XII, Sec. 3, 1987 Constitution).

The DAR is mandated to allocate the lots in the Settlement Project in favor of qualified beneficiaries. Pursuant to said mandate, the titling and distribution thereof should be undertaken in accordance with DAR Administrative Order No. 9, Series of 1989. However, since school buildings have already been constructed on some lots, the representatives of Fatima High School may file an application for lease thereof. The DAR will then evaluate as to whether or not there exist legal and justifiable grounds for the lease of the lots instead of their allocation to qualified beneficiaries.

Please be guided accordingly.

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

Copy furnished:

Director Gloria J. Fabia

BLAD