January 5, 1999

DAR OPINION NO. 01-99

MR. ALEJANDRO C . CRUZ

PARO II

DAR — Provincial Office

3rd Floor, L.M. Tañada Bldg.

Gumaca, Quezon

Dear PARO Cruz:

This refers to the indorsement of Director Ricardo R San Andres of CLUPPI-2, Secretariat dated 16 October 1998 requesting for legal opinion relative to the request of the PAC Taytay Methodist Church to transfer its 37-hectare property located at Sitio Tinambulan, Pinagsakayan, Calauag, Quezon to Wesleyan University of the Philippines in Cabanatuan City, Nueva Ecija for conversion and establishment of a College of Agriculture.

Under Section 10 of R.A. No. 6657, to be exempt from CARP coverage, the subject property must have been actually, directly and exclusively used or found to be necessary for educational purposes as of 15 June 1988.

On the other hand, Section 6, paragraph 4 of R.A. No. 6657 in relation with DAR Administrative Order No. 1, Series of 1989 provides, quote:

"Upon the effectivity of Republic Act No., 6657, any sale, disposition, lease, management contract or transfer of possession of private lands executed by the original landowner in violation of this Act shall be null and void; Provided, however, that those executed prior to this Act shall be valid only when registered with the Register of Deeds within three (3) months after the effectivity of this Act. Thereafter, all Register of Deeds shall inform the DAR within thirty (30) days of any transaction involving agricultural lands in excess of five (5) hectares."

Furthermore, Section 73 (a) of R.A. No. 6657 provides as one of the prohibited acts the following:

"the ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by farmer-beneficiaries."

From the aforequoted, it is clear that the transfer of the subject 37-hectare agricultural landholdings to the Wesleyan University purportedly for agricultural educational purposes is violative of said provisions of law. Under DAR Administrative Order No. 1, Series of 1989, a DAR clearance is required before transfer could be legally effected to foreclose possible circumvention of the provisions of R.A. No. 6657 and its implementing guidelines. Moreover, an application for exemption is necessary to determine on the merits whether or not the subject landholdings are exempt from CARP coverage pursuant to Section 10 of R.A. No. 6657 and DAR Administrative Order No. 13, Series of 1990.

In view of all the aforegoing, it could be inferred that the possible real intent in transferring the property in issue to Wesleyan University purportedly for agricultural educational purposes is apparently to evade the coverage of the same under CARP. This would in effect be a circumvention of the provisions of Republic Act No. 6657 which should not be countenanced. Thus, in the absence of an application for exemption, said landholdings may now be covered under the Program.

Please be guided accordingly.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Dir. Ricardo R. San Andres

Head, CLUPPI-2, Secretariat

Dir. Eugenio B. Bernardo

DAR — Region IV

E. Rodriguez Memorial Building

Capitol Compound, Pasig City

MARO Jovencio L. Ferrera

DAR — Municipal Office

Calauag, Quezon