March 16, 2004
DAR OPINION NO. 09-04
Mr. Francisco M. Reyes
c/o Boys' Dorm Annex
Philippine Science High School
Agham Road, Diliman, Quezon City
Dear Mr. Reyes:
This refers to your letter-request for clarification/opinion indorsed to us by Director Ronald A. Ortille, Legal Affairs Department, Land Registration Authority, on the following issues, to wit:
- In general, whether an agricultural land with an Emancipation Patent (EP) title can be transferred to a person other than the farmer-beneficiary's immediate family members by means of a Deed of Sale? If so, what are the processes/steps/requirements needed to do so? If not, please cite legal bases;
- Whether an agricultural land with an EP title can be issued a regular title (TCT)? If so, what are the processes/steps/requirements needed to do so? If not, please cite legal bases;
- If it is legally possible for me to buy the said agricultural land? If so, what are the processes/steps/requirements needed to do so? and
- Can it be issued a regular title (TCT) after I have bought it? If so, what are the processes/steps/requirements needed to do so and how much fees is involved as far as LRA/Registry of Deeds is concerned for the transfer/issuance of TCT?
You stated that one Mr. Federico B. Manlusoc, a farmer-beneficiary, is selling to you an agricultural land awarded to him covered by an Emancipation Patent (EP) (TCT-EP No. 45793) located at San Fernando Sur, Cabiao, Nueva Ecija; that according to Mr. Manlusoc, he is paying directly to the landowner and not with the Land Bank of the Philippines (LBP); and that he still has a balance of around 80 cavans of rice.
Relating to the issues raised in your letter, the following are the pertinent provisions of DAR Administrative Order No. 8, Series of 1995 (Rules and Procedures Governing the Transferability of Lands Awarded to Agrarian Reform Beneficiaries (ARBs) Pursuant to Presidential Decree No. 27, as amended by Executive Order No. 228 and Republic Act No. 6657), to wit:
1. Item I, 1st paragraph
"I. PREFATORY STATEMENT
Presidential Decree No. 27 provides that title to lands acquired pursuant thereto or the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government. However, Section 6 of Executive Order No. 228 provides that ownership of lands acquired by farmer-beneficiaries may be transferred after full payment of amortizations." (emphasis supplied) ASETHC
2. Item II (Nos. 1, 2 and 7)
"II. POLICY STATEMENT
1. Lands awarded to ARRs pursuant to either P.D. No. 27 or R.A. No. 6657 may be transferred and registered by the Register of Deeds only after the issuance of a DAR Clearance. (emphasis supplied)
2. It shall be understood that although the transfer or awarded land is allowed, the productivity of the subject land be maintained and any change in the nature of its use shall not be allowed except with the approval of the DAR under its rules on conversion or exemption.
3. Transfer of awarded lands under P.D. No. 27, as amended by E.O. No. 228 and R.A. No. 6657 may be allowed, provided the following shall be observed:
a) that the productivity of the land shall he maintained;
b) that the buyer will not exceed the aggregate landowner ceiling provided by law; and
c) that the ownership ceiling of five (5) hectares shall be imposed.
xxx xxx xxx
7. Transfer Certificate of Title (TCT) shall be issued by the Land Registration Authority (LRA) for lands transferred by an awardee to a transferee. (P.D. No. 27, as amended by E.O. No. 228)" (emphasis supplied)
Given the above provisions of the aforementioned guideline, it is clear that since the land is not yet fully paid, it could not as yet be transferred.
For your further information, attached please find copy of DAR Administrative Order No. 8, Series of 1995. SATDEI
We hope to have clarified the matters.
Very truly yours,
(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning and Legal Affairs Office