January 3, 1994

DAR OPINION NO. 01-94

Atty. Perpeta D. Tandoc

AVP Asian Title Co., Inc.

12th Floor, Planters Development Bank Bldg.

314 Sen. Gil J. Puyat Extension

Makati, Metro Manila

Dear Atty. Tandoc:

This is in reply to your letter dated 4 October 1993 requesting the opinion of this Office on whether or not E.O. 228 has in effect lifted the prohibition on transfers of land acquired by farmer-beneficiaries pursuant to PD 27. The instant request items from the inconsistency between the provision of PD 27 that title acquired pursuant thereto shall not be transferable except by hereditary succession or to the government and the provision in Section 6 of E.O. 228 that ownership of lands acquired by farmer-beneficiaries by virtue of PD 27 may be transferred after full full payment of their amortizations.

Since both PD 27 and EO 228 cover rice/corn lands awarded to tenants thereof, and EO 228 is the later law, it is believed that the provision in section 6 thereof allowing the transfer of said lands after full payment repeals the inconsistent provision in PD 27 prohibiting said transfer. The following should, however be noted:

1)        The total agricultural land owned by the transferee, inclusive of the land to acquired, shall not exceed the 5-hectare landownership ceiling provided in RA. 6657;

2)        No conversion of the farmholding for purposes other than agricultural shall be undertaken without a DAR Order of Conversion; and

3)        Under Administrative Order No. 20, Series of 1992 of the Office of the President, all irrigated and economically irrigable lands covered by irrigation projects with firm funding commitments shall be non-negotiable for conversion.

Please guided accordingly.

                                                   (SGD.) HECTOR D. SOLIMAN

Assistant Secretary

Legal Affairs Office