August 28, 2003
DAR OPINION NO. 13-03
Mr. Hector A. Bueno
San Lorenzo, City of Tabaco
Albay
Dear Mr. Bueno:
This refers to your letter-request for clarification/opinion (with follow-up letter dated 20 July 2003) on the status of lands reclassified into non-agricultural purposes by Local Government Units (LGUs) pursuant to Section 20 of Republic Act No. 7160, as implemented by Malacañang Memorandum Circular No. 54, series of 1993 and the DAR-DA-DILG-HLURB Joint Memorandum Circular dated 21 March 1995, that is, whether or not said lands are already exempt from the coverage of DAR Administrative Order No. 1, series of 1989 (Rules and Procedures Governing Land Transactions). HICSTa
You stated that your query was conceived due to the fact that in Bicol Region, many landholdings were already reclassified from agricultural to non-agricultural purposes pursuant to Section 20 of R.A. No. 7160; that, however, the respective Register of Deeds and local DAR Offices still require the necessary DAR Clearance in accordance with DAR Administrative Order No. 1, series of 1989; that, in your opinion, DAR Administrative Order No. 1, series of 1989 was already amended by R.A. No. 7160, Malacañang Memorandum Circular No. 54-93 and Joint DAR-DA-DILG-HLURB Memo Circular dated 21 March 1995 [Prescribing the Guidelines to Implement Memorandum Circular No. 54 (The Authority of Cities and Municipalities to Reclassify Lands Within the Limits Prescribed by Section 20 of R.A. No. 7160, Otherwise Known as the Local Government Code of 1991)]; that another reason is the participation of DAR itself in issuing "Reclassification Form C" and the Department of Agriculture (DA) in issuing "Reclassification Form B"; that on the DAR's side (in form C), it already certifies that the land subject of the reclassification are not distributed to farmer beneficiaries (FBs), no notice of coverage has been issued, not voluntarily offered, and not subject to VLT; that on the DA side, it also certifies that the land subject of reclassification have ceased to be economically feasible and sound for agricultural purposes, that it is not classified as non-negotiable for conversion as provided for by Malacañang A.O. No. 20, and that it is outside SAFDZ and NPAAD areas; that, for all intents and legally speaking, these reclassified lands into non-agricultural purposes are not anymore considered agricultural; that they are in the same footing as lands reclassified before the effectivity of R.A. No. 6657 pursuant to DOJ Opinion No. 44, series of 1990 and as decided by the Supreme Court in Natalia Realty vs. DAR; and that for reasons and arguments mentioned above, the DAR clearance required under A.O. No. 1, series of 1989 is no longer applicable on transactions involving lands already reclassified by LGUs pursuant to Section 29, R.A. No. 7160 because DAR may be put under "Estoppel" for reasons of its participation in the process.
Relating to the issue you posed, DAR Administrative Order No. 1, series of 2002 (2002 Comprehensive Rules on Land Use Conversion) defines the following:
"2.12. Land Use Conversion refers to the act or process of changing the current physical use of a piece of agricultural land into some other use or for another agricultural use other than the cultivation of the soil, planting of crops, growing of trees, including harvesting of produce therefrom, as approved by DAR. (emphasis supplied)
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2.19. Reclassification of Agricultural Land refers to the act of specifying how agricultural lands shall be utilized for non-agricultural uses such as, residential, industrial, commercial, as embodied in the land use plan, subject to the requirements and procedure for land use conversion, undertaken by a Local Government Unit (LGU) in accordance with Section 20 of RA 7160 and Joint Housing and Land Use Regulatory Board (HLURB), DAR, DA and Department of Interior and Local Government (DILG) MC-1995. It also includes the reversion of non-agricultural lands to agricultural use." (emphasis supplied)
It is likewise worthy to note that the authority to reclassify lands is lodged with the local government units concerned pursuant to section 20 of R.A. No. 7160 (Local Government Code) while the exclusive authority to approve or disapprove applications for conversion belongs to the Department of Agrarian Reform as provided under Sections 4 (j) and 5 (1) of Executive Order No. 129-A and Section 4 of Presidential Memorandum Circular No. 54, series of 1993.
GIVEN ALL THE ABOVE, it is clear that agricultural lands reclassified on or after 15 June 1988 (effectivity of R.A. No. 6657) if not yet applied for conversion and duly approved on the merits by DAR pursuant to the provisions of DAR Administrative Order No. 1, series of 2002 remain as agricultural lands, thus, the provisions of DAR A.O. No. 01, series of 1989 shall still apply.
Incidentally, as regards the other matter mentioned in your follow-up letter dated 20 July 2003, attached is the first indorsement dated 12 August 2003 referring your case to the Regional Director of DAR Region V for appropriate action and status update.
We hope to have clarified the matters.
Very truly yours,
(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning
and Legal Affairs Office