January 11, 2000

DAR OPINION NO. 07-00

Mr. Ernesto Rotairo

6721 Bangkal St.,

Los Baños, Laguna

Dear Mr. Rotairo:

This refers to your letter dated 5 January 1999 seeking clarification as to who can be held responsible for correcting alleged illegal conversion activities.

You state that you are contemplating to buy a lot/unit at Villa Remedios Phase III, owned by a certain Mariquit P. Reventar and located at Barangay Halang, Calamba, Laguna; that after paying the amount of P10,000.00 as reservation fee, you found out that the subject property has no DAR Exemption Clearance/DAR Conversion Order except a document showing the owner's License to Sell from the Housing and Land Use Regulatory Board (HLURB) and a Development Permit from the Municipal Mayor of Calamba, Laguna; and that despite the fact that the subject property is fully irrigated for palay production, nevertheless, the development continues even without complying with existing rules and regulations on conversion.

Please be informed that the exclusive authority to approve or disapprove applications for conversion of agricultural lands for residential, commercial, industrial and other land uses is vested with the Department of Agrarian Reform (Sections 4(j) and 5(l), Executive Order No. 129-A, Series of 1987). Section 65 of Republic Act No. 6657 (Comprehensive Agrarian Reform Law) likewise empowers the DAR to authorize under certain conditions, the conversion of agricultural lands quote:

"After the lapse of five (5) years from its award when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have a greater economic value for residential, commercial or industrial purposes, the DAR, upon application of the beneficiary or the landowner, with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or conversion on the land and its disposition: Provided, That the beneficiary shall have fully paid his obligation."

Corollarily, DAR Administrative Order No. 08, Series of 1995 (copy attached) provides that any change in the nature of awarded lands' use shall not be allowed except with the approval of the DAR under its rules on conversion or exemption. Moreover, under Administrative Order No. 20 (Interim Guidelines on Agricultural Land Use Conversion) of the Office of the President, all agricultural lands classified hereunder shall not be subject to and non-negotiable for conversion:

"(a)       All irrigated lands where water is available to support rice and other crop production, and all irrigated lands where water is not available for rice and other crop production but are within areas programmed for irrigation facility rehabilitation by the Department of Agriculture (DA) and National Irrigation Administration (NIA); and

(b)        All irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion."

We submit, therefore, that the mere issuance per se of License to Sell by the HLURB and Development Permit by the Municipal Mayor of Calamba, Laguna does not by itself validate the conversion of the subject landholding from agricultural to non-agricultural use and dispense with the requirements of existing laws, rules and regulations on conversion. Stated otherwise, said License to Sell and Development Permit should not serve as substitutes for the compliance of the laws and rules on conversion since the issuance of the same presupposes that the property had earlier been lawfully converted to non-agricultural uses upon previous application and due issuance of prior DAR Conversion Order.

In view of all the aforegoing, it is hereby directed through this legal opinion that proper investigation shall be conducted by the DAR Field Offices concerned and the Task Force on Illegal Conversion to determine whether or not illegal conversion activities are being undertaken in the subject landholding and, consequently, appropriate action relative thereto should accordingly be rendered.

We hope to have been of help and to have clarified the matter with you.

Very truly yours,

(SGD.) FEDERICO A. POBLETE

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Laguna Lands & Estate Development Corp.

Calamba Trade Center

Crossing, Calamba, Laguna

The Regional Director

DAR Region IV

Capitol Compound, Pasig City

The Provincial Agrarian Reform Officer

DAR Provincial Office

Calamba, Laguna

The Municipal Agrarian Reform Officer

DAR Municipal Office

Calamba, Laguna