February 11, 1999

DAR OPINION NO. 15-99

MEMORANDUM

FOR             :     UNDERSECRETARY CONRADO S. NAVARRO
                           Field Operations and Support Services Office
                           This Department

SUBJECT    :     Request for Opinion Regarding Coverage of Land

This has reference to your request for opinion regarding the property of one Marina B. Santos who died in 1980. The subject property, approximately 33.5817 hectares located in Candaba, Pampanga, is an unirrigated riceland. Said owner of the property is not married neither had children but had several brothers and sisters, some already deceased and one among them had a child who is now seeking advice on the following, to wit:

a.         Is the property covered under the Comprehensive Agrarian Reform Program?

b.         Are the surviving brothers and sisters including the children of those deceased brothers and sisters of the original landowner entitled to retention right?

c.         If the land is acquired by DAR under CARP, to whom will the just compensation be paid and what documentation is required for this purpose?

d.         If the land is not covered under the CARP, how does the son of one of her siblings go about having the title to the property transferred to his name?

e.         If once the property is titled to his name, will it now be covered by CARP?

f.          Will the alleged heir (son of one of the surviving brothers/sisters of the original landowner) have retention right both for himself and for his own children?

We believe that, considering the subject property is covered by Operation Land Transfer under Presidential Decree No. 27 and/or R.A. No. 6657, the applicable laws, rules and regulations are Letter of Instruction (LOI) No. 474, dated 21 October 1976 and Administrative Order No. 4, Series of 1991. In order to have a clearer application of the aforementioned laws and guidelines, it is necessary for the proper determination of the issues posed that we have to assume some situations since the facts as narrated in your letter failed to disclose whether the land is tenanted or untenanted. Under Administrative Order No. 4, Series of 1991, otherwise known as the "Supplemental Guidelines Governing The Exercise of Retention Rights by Landowners Under Presidential Decree No. 27", it expressly provides in its policy statements the following, quote:

"B.       Policy Statements

1.         Landowners covered by P.D. No. 27 are entitled to retain seven (7) hectares, except those whose entire tenanted rice and corn lands are subject of acquisition and distribution under Operation Land Transfer (OLT). An owner of tenanted rice and corn lands may not retain those lands under the following cases:

a)         If he as of 21 October 1972 owned more than 24 hectares of tenanted rice or corn lands;

xxx                      xxx                      xxx"

Simply put, if the subject riceland is tenanted, the late Marina B. Santos, the alleged owner, may not retain (i.e., zero retention) since the land is more than 24 hectares. Consequently, it follows that the brothers/sisters or heirs (and their children as well) of Marina B. Santos cannot inherit anything if the land is tenanted and covered under OLT/P.D. No. 27. On the other hand, if the land is untenanted, the same may be covered under CARP. It must be noted, however, that the law on succession under the Civil Code shall be applied first upon her death in 1980, since she died before the effectivity of R.A. No. 6657 on 15 June 1988. Thus, her closest legal heirs (i.e., brothers and sisters) shall inherit the land and they shall each be entitled to five (5) hectares retention and the excess, if any, shall be covered under CARP. The children of each of the surviving brothers and sisters (who subsequently died after 1980) shall only inherit five (5) hectares all in all by right of representation from their respective parents and the excess, if any, shall likewise be covered by CARP.

With regard to question letter (c), the Land Bank of the Philippines (LBP) shall compensate the landowner. Considering that the landowner Marina B. Santos is now deceased, the legal heirs of the latter will be the parties to be paid just compensation for the land. Executive Order No. 228 dated 17 July 1987, entitled: "Declaring Full Land Ownership To Qualified Farmer Beneficiaries Covered by Presidential Decree No. 27 and Providing For The Manner Of Payment By The Farmer Beneficiary And Mode Of Compensation To The Landowner", provides the mechanics for the payment of just compensation of lands covered under Operation Land Transfer. On the other hand, if the land is covered under R.A. No. 6657, the pertinent guideline covering the just compensation thereof is A.O. No. 5, Series of 1998 (Revised Rules and Regulations Governing the Valuation of Lands Voluntarily Offered or Compulsorily Acquired Pursuant to R.A. No. 6657).

With respect to question letter (d), if the land is not covered under CARP, it presupposes that the same is untenanted and shall entirely be covered (i.e., zero retention) under OLT (P.D. No. 27 and LOI 474). Hence, the son of one of the late Marina B. Santos siblings cannot have the property titled to his name since he ultimately has nothing to inherit or retain.

In connection with questions letters (e) and (f) and based from all the foregoing, even assuming arguendo that the subject property will be legally transferred in the name of the nephew of the original owner, he may possibly retain nothing or own or retain only a maximum of five (5) hectares. Accordingly, the children of the nephew of the original landowner may likewise inherit nothing, or inherit or retain only a maximum of five (5) hectares by right of representation, depending on whether the subject landholding is covered under OLT or under CARP.

We hope to have clarified the matters with you.

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning