February 9, 1999

DAR OPINION NO. 06-99

ROBERTO C.A. ONG

Senior Vice-President

Land Bank of the Philippines

319 Sen. Gil Puyat Avenue

Makati City

Dear Mr. Ong:

This refers to your letter dated 22 December 1998 concerning the land transfer claim of Marvia & Company, Inc. in Pontevedra, Negros Occidental wherein you raised the following questions, to wit:

1.         At what stage of the land valuation process can a VOS be amended?

2.         In the event that a VOS is allowed to be amended/raised during the valuation process, who is the DAR approving authority for this purpose?

As stated, the entire 294.3716 property of Marvia & Company, Inc. was covered under the Voluntary Offer to Sell (VOS) scheme which was filed in July 1996 for P22,000,000; that out of said area, 217.3280 has. were initially valued at P12.704 million in September 1995; that said valuation was rejected in August 1997 and a DARAB Order was issued in July 1998 for the revaluation of the property; that while Land Bank was in the process of revaluing the property, the Corporation submitted to DAR an amended VOS dated 17 November 1998 of P42,000,000; that the amended offer was reportedly made to correct the alleged error committed by the company's secretary who typed the amount of P22,000,000 in the letter offer instead of P42,000,000; and that in a Resolution dated 07 December 1998, Regional Director Dominador B. Andres stated that his Office "does not interpose any objection to the amended offer" and referred said Resolution to Land Bank for its appropriate action.

In response to your query, amendment of VOS shall not as a matter of policy be allowed or condoned except for just and valid ground in order that CARP implementation will not be unduly delayed or derailed. Furthermore, in no case should amendment of VOS be allowed upon receipt by the landowner of the corresponding payment or after deposit in cash or in LBP bonds had been made. Section 16 (e) of R.A. No. 6657 is explicit that in such cases, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines and thereafter proceed with the distribution of the land to qualified beneficiaries.

Thus, the proper action in case the landowner is not amenable to the valuation is to file a petition for the determination of just compensation before the DARAB. The compensation for the land shall be the amount agreed upon by the DAR, LBP and the landowner in accordance with the criteria provided for in Sections 17 & 18 and other pertinent provisions of R.A. No. 6657 and existing guidelines, or the value set under summary administrative proceedings conducted by DAR pursuant to Section 16 (d) of R.A. No. 6657 and the DAR Adjudication Board Revised Rules of Procedures, or as may be finally determined by a competent court.

It must be pointed out, moreover, that the landowner could be considered estopped from claiming typographical error as a ground in amending its earlier offer (Article 1431, Civil Code of the Philippines). Hence, cogent and convincing proof must be presented to show that the typographical error was indeed an honest oversight. We should not just take the landowner's word for it for the same might have been resorted to in order that a higher compensation for the land might possibly be arrived at. It is worth noting that it is eventually the determination of just compensation pursuant to existing laws, rules and regulations and not the amendment of a VOS offer which should be the controlling guide or factor in the resolution of the valuation of the property in the instant case. The landowner should therefore wait for the revaluation by the LBP and if it is not yet satisfied, it may file with the Special Agrarian Court a petition for final determination of just compensation since the DARAB had already initially acted thereon.

Finally, relative to the above, please find attached DAR Memorandum Circular No. 2, Series of 1998 Re: Compulsory Acquisition (CA) of Landholdings Covered by Voluntary Offer to Sell (VOS). Said guideline was issued purposely to accelerate coverage of landholdings initially offered voluntarily for sale considering that said landholdings are one of the priorities under Phase One of CARP implementation for immediate acquisition and distribution to ARBs. Thus, the coverage of the landholdings in issue should no longer be delayed any further.

We hope to have enlightened you on the matter and please be guided accordingly.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary of Legal Affairs, and Policy and Planning

Copy furnished:

Dir. Dominador B. Andres

DAR — Region VI

3rd Street Lawaan Village

Balantang, Jaro Iloilo City

The Provincial Agrarian Reform Officer

DAR — Provincial Office

San Sebastian St.

Bacolod, Negros Occidental

The Municipal Agrarian Reform Officer

DAR — Municipal Office

Pontevedra, Negros Occidental