January 9, 1998
DAR OPINION NO. 03-98
GERARDO L. LIMCAOCO
Olympia Towers
7912 Sto. Tomas St.
Corner Makati Avenue
Makati City
Dear Mr. Limcaoco:
This refers to your letter dated 12 November 1997 requesting for legal opinion on the following queries, to wit:
1. Is an agricultural land within the retention right of an owner coverable by the Comprehensive Agrarian Reform Law (CARL)?
2. Can an owner of an agricultural land within his retention right sell the said piece of land to anybody without clearance from DAR? Can an Ordinary Transfer Certificate of Title (TCT) be issued for the sale of the said parcel of land?
Anent your first query, the retained area is not covered by the land acquisition component of CARP but is covered still by its leasehold provisions to protect and improve the tenurial and economic status of tenant-tillers. The Constitution itself grants landowners the right to retain a portion of their lands covered by agrarian reform and this right is limited to a maximum of five (5) hectares per landowner.
As regards your second query, a landowner may sell the land within his retention right to anybody including to one not qualified to be a beneficiary except those prohibited under the law to be a transferee, provided that after the sale, the buyer will not own more than five (5) hectares of agricultural land. However, the transferee may not convert the use of the land from agricultural to non-agricultural without the approval of the DAR through an Order of Conversion.
Finally, since the subject sale pertains to the retained area which is not covered by the land acquisition component of the CARP, an Ordinary Transfer Certificate of title may be issued. Nonetheless, DAR Clearance is still necessary before the sale could be validly effected to foreclose possible circumvention of the CARL pursuant to Sections 6 (4th paragraph), 70 and 73 (a) of R.A. No. 6657, and DAR Administrative Order No. 1, Series of 1989.
We hope to have clarified the matters with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning