March 25, 1999

DAR OPINION NO. 32-99

ATTY . RAUL C . LALUAN

Trial Attorney IV

DAR — Provincial Office

Urdaneta, Pangasinan

Dear Atty. Laluan:

This refers to your letter dated 17 November 1998 asking to be informed on whether or not the transfer of awarded lands to government entities is allowed through ordinary sale.

You state that government entities tasked to implement government programs are in need of lands in your jurisdiction to establish projects to cater to the needs of the citizenry; that some of the lands affected by said projects are covered by Certificates of Land Ownership Award (CLOAs); that these concerned government entities are frequenting your Office to obtain certifications approving the transfer of those lands invoking the exemptions in Section 27 of R.A. No. 6657 in relation with Administrative Order No. 08, Series of 1995; and that, however, the lands sought to be acquired will be converted to non-agricultural purposes, thus, the agricultural productivity will not be maintained.

Anent your query, please be informed that pursuant to Administrative Order No. 08, Series of 1995, specifically, Item II.2 and 3 thereof, the same expressly provides the following, quote:

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"2.     It shall be understood that although the transfer of awarded land is allowed, the productivity of the subject land be maintained and any change in the nature of its use shall not be allowed except with the approval of the DAR under its rules on conversion or exemption.

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3.      Transfer of awarded lands under P.D. No. 27, as amended by E.O. No. 228 and R.A. No. 6657 may be allowed, provided the following shall be observed:

a.         that the productivity of the land shall be maintained;

b.         that the buyer will not exceed the aggregate landowner ceiling provided by law; and

c.         that the ownership ceiling of five (5) hectares shall be imposed."

From the aforequoted guideline in relation with Section 27 or R.A. No. 6657, although the transfer in favor of the government is one of the exceptions to the prohibition against transfer within ten (10) years from award, the transfer contemplated is that which will maintain the use of the land for agricultural production or purposes. It follows therefore that any transfer through ordinary sale in favor of government entities in their private capacity within the 10-year prohibitory period for a purpose other than that contemplated is not allowed as expressly enunciated under Items II.2 and 3 of DAR Administrative Order No. 08, Series of 1995.

On the other hand, if the transfer to government entities is for public use through expropriation proceedings in the proper exercise of their delegated power of eminent domain and not in their proprietary capacity, the same may be allowed even in the absence of approval by the DAR to convert or reclassify agricultural properties from agricultural to non-agricultural use, upon payment of just compensation to the affected. ARBs (Province of Camarines Sur vs. Court of Appeals, 222 SCRA 173). In fairness to the CLOA or EP awardees whose lands shall be expropriated, they should, however, still be entitled as agrarian reform beneficiaries or awardees in other landholdings.

Please be guided accordingly and we hope to have enlightened you on the matter.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Dir. Nestor Acosta

DAR Regional Office No. 1

Jean Lee Building, Lingsat

San Fernando, La Union

PARO Ernesto Pamoceno

DAR Provincial Office

Human Settlement Bldg.

Urdaneta, Pangasinan