September 8, 1999

DAR OPINION NO. 41-99

Ms. MA. CARMELITA Y . ATIENZA

Philippine National Bank

Bangoy Branch

Bonifacio St., Davao City

Dear Ms. Atienza:

This refers to your earlier letter dated 01 March 1999 as reiterated in your letter dated 11 June 1999 requesting for an interpretation regarding your retention rights.

You state that you and your brothers and sisters are co-owners of a 30-hectare property that was declared by DAR to be excluded from CARP coverage as same is devoted to livestock raising. You now ask if you can still avail of your retention rights with respect to your other properties and whether or not there is still a need to file for retention insofar as your 4-hectare other property is concerned.

Anent your first query, please be informed that all landowners of private agricultural lands with a total area of more than five (5) hectares, except those who have already been granted full retention under Presidential Decree No. 27, may exercise their right of retention under Republic Act No. 6657. In no case, however, shall your total landholding exceed five (5) hectares, the ceiling prescribed under Republic Act No. 6657.

With regard to your second query as to whether or not you still need to file application for retention as to your other 4-hectare property, you will find self-explanatory DAR Opinion No. 89 Series of 1998, which, insofar as pertinent, is quoted as follows:

". . . As regards landholdings covering an area of five (5) hectares or less, we submit that the owners thereof are no longer required to apply for retention before they can sell or otherwise dispose of the same. It is sufficient that the evaluating officer (in this case the MARO) establishes with certainty the accuracy and truthfulness of the evidence presented, i.e., Listasaka, Ownership Title, Affidavit of transferor stating that the land subject of deed is a retention or portion of the retention area, Affidavit of the transferee that he/she has a total landholding inclusive of the land to be acquired of not more than five (5) hectares, as well as the Certifications of Assessors as to the total aggregate area of the landholdings to be acquired which do not exceed the 5-hectare retention limit. If he finds said documents to be in order, he shall forward the same to the PARO with his comments and recommendations. The PARO, upon examination of all the attached documents and finding the same to be in order, shall then issue a clearance for the registration of the subject deed.

It has to be made clear, however, that any intended sale or disposition of agricultural lands by landowners, whether they are allegedly owning more or less than five (5) hectares, shall always be subject to DAR Clearance before the same could be validly registered with the Register of Deeds, to prevent possible circumvention of the provisions of R.A. No. 6657 and its related implementing guidelines." (emphasis and emphasis supplied)

We hope to have clarified the matters with you.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

OSEC Doc. No. 99030484

Rodolfo T. Inson

OIC-Director

DAR Region XI

Ecoland, Davao City

Ernesto Tan

OIC-PARO II

DAR Provincial Office

3rd Floor, Tapia Bldg.

C.M. Recto St., Davao City