December 14, 1999

DAR OPINION NO. 79-99

ATTY . JOSE M . JOSE

CARPIO VILLARAZA and CRUZ Law Offices

5th Floor, LTA Building

118 Perea Street, Legaspi Village

1229 Makati City

Dear Atty. Jose:

This refers to your request for opinion on the following:

1.         Are lands which are already exempted from CARP coverage still included in determining the total agricultural landholdings of a landowner?

2.         Can a person freely acquire and dispose lands which are already exempted from CARP coverage without any prior clearance from the DAR?

3.         Is there a limit to the total number of landholdings which are exempted from CARP coverage that can be owned by a single landowner?

4.         Can a landowner who owns more than five (5) hectares of land which have already been exempted from CARP coverage and who still does not have any retention area exercise his retention rights under R.A. No. 6657 by acquiring a parcel of agricultural land which is not exempted from CARP coverage and declaring the same as his retention area?

5.         Does a landowner still have to secure DAR clearance to transfer land which is clearly within the retention area of both the transferor and the transferee?

You stated that your client, MULAWIN INVESTMENTS, INC. (Mulawin), is the registered owner of nine (9) parcels of land with an aggregate area of seventy-four and 4686/10,000 (74.4680) hectares, more or less, located at Puerto Galera, Oriental Mindoro; that said landholdings were exempted from the coverage of the Comprehensive Agrarian Reform Program (CARP) pursuant to Section 10 of Republic Act No. 6657 for having a slope of 18% and over in an Order dated 26 March 1998 issued by Director Eugenio B. Bernardo, then Regional Director of DAR-Region IV; that Mulawin declared as part of its retention area under Section 6 of R.A. No. 6657 another parcel of land, which it purchased, with an area of two and 88/100 (2.88) hectares, more or less, also located at Puerto Galera, Oriental Mindoro; and that aside from this 2.88 hectare property, Mulawin has no other declared retention area.

Relative to your first query, even if a parcel of land is exempted from CARP pursuant to Section 10 of R.A. No. 6657, as herein, for having a slope of 18% or over and undeveloped, said exempted land, though not to be subjected to acquisition and distribution under CARP, may nevertheless be included in determining the total agricultural landholdings of the landowner. This is in consonance with the social justice provision of the Constitution to reduce social and economic inequalities by equitably diffusing wealth for the common good and regulating the acquisition, ownership, use and disposition of property and its increments (Section 1, Article XIII of the Philippine Constitution). Please note that your exempted land has not ceased to be agricultural.

As regards your second query, while it is admitted that a DAR Order of Exemption signifies that a landholding may not be acquired and distributed under CARP, this does not render, total and absolute, the exemption from the application of the Comprehensive Agrarian Reform Law (CARL). DAR Administrative Order No. 13, Series of 1990 provides that "in all cases, the DAR shall conduct a continuing review and verification of exempted lands to ascertain which of the areas declared exempt or which portions thereof are no longer actually, directly and exclusively used and found necessary for said purpose. If the purpose for the grant of exemption no longer exists, the area or portion involved shall be covered under CARP pursuant to the guidelines on land acquisition and distribution." Accordingly, lands which have already been declared exempt pursuant to a DAR Order may, nonetheless, not be freely acquired or disposed of without a DAR Clearance.

Anent your third query, R.A. No. 6657 appears not to impose any limitation insofar as the total number of landholdings that may be exempted from CARP coverage is concerned. However, all exemptions presuppose due determination thereof on the merits upon proper application for exemption pursuant to existing laws, rules and regulations.

Anent your fourth query, please be informed that landowners of private agricultural lands, except those who have already been granted full retention under Presidential Decree No. 27, may exercise their right of retention granted under R.A. No. 6657. In no case, however, shall their total agricultural landholdings exceed five (5) hectares, the landownership ceiling prescribed under R.A. No. 6657:

Your fifth query is answered in the affirmative. Pursuant to Section 70 of R.A. No. 6657, the sale or disposition of agricultural lands retained by a landowner as a consequence of Section 6 of said law shall be valid as long as the total landholdings that shall be owned by the transferee thereof inclusive of the land to be acquired shall not exceed the landholding ceilings provided for in R.A. No. 6657.

Your queries are answered accordingly.

Very truly yours,

(SGD.) FEDERICO A. POBLETE

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

The Municipal Agrarian Reform Officer

DAR-Municipal Office

Oriental Mindoro

PARO Miriam Santos

DAR-Provincial Office

Calapan, Oriental Mindoro