January 28, 2002

DAR OPINION NO. 01-02

MS. LUCILLE G. CAPISTRANO
Head, CLUPPI 1 Secretariat
DAR, Quezon City

Dear Ms. Capistrano:

This refers to your request for legal opinion/clarification whether a new landowner who purchased a portion of a property covered by Land Use Conversion Order has the legal personality to request for an extension of period to complete the development of the land, like in the case of the Armed Forces and Police Mutual Benefit Association, Inc., (AFP MBAI) who purchased from V.A. Alvarez Realty Inc., an aggregate area of 10.239 hectares located at Barangay Dinginan, Roxas City.   EaDATc

In the attached letter dated 14 August 2001 of Atty. Moises A. Balon, Senior Vice President, Head, Real Estate Group, AFP MBAI, and the documents supporting their request for said extension, it appear that on 07 November 1994, DAR issued an Order of Conversion valid for three (3) years up to 08 November 1997; that at the time of the transfer of the property in AFP MBAI's name on 05 June 1997, only five (5) months were left to complete the development of the land as mandated under the said Conversion Order issued on 07 November 1994, that upon AFP MBAI's request, DAR granted a two-year extension up to 12 July 2001, that during this period their application for Development Permit with the city government was held in abeyance pending the issuance of the Environmental Compliance Certificate (ECC); that the DENR eventually approved and issued the ECC only on 04 January 2001, six (6) months before the expiration of the non-extendible extension on 12 July 2001, on the condition that the AFP MBAI shall comply with the new requirement for an Engineering Geological and Geo-hazard Assessment (EGGA) which took sometime to complete.

It further appear that prior to the expiration of the DAR extension order, the requirements for the issuance of the Development Permit had already been completed and submitted to the City Planning Office by the AFP MBAI; and, that unfortunately, it took the City Planning Office sometime to evaluate their application and by the time they were about to issue the Development Permit, the extension order had already expired, hence, the request of the AFP MBAI.

After a careful evaluation of the attached documents supporting the AFP MBAI's request for extension we have noted, that while the attached Conversion Orders dated 07 December 1994 and 12 July 1999 issued by the DAR, mandate the observation/compliance on the conditions stipulated therein, otherwise, the same may be cancelled or recalled, the circumstances which led to the delay in the development of the land however, appear not to be attributable to their fault or negligence. Thus, in accordance with justice, fairness and equity, the herein request of the AFP MBAI for the extension of development of the 10.239 hectares which they had purchased from the V.A. Realty Inc. is imperative. Their request for extension on the said property is inherent and appurtenant to the exercise of one's right of ownership.

Attached is the folder containing the documents supporting the AFP MBAI's request, for your reference of action.   cAaDCE

Very truly yours,

(SGD.) ATTY. VIRGILIO R. DE LOS REYES
Undersecretary, PPLAO

Copy furnished:

Atty. Moises A. Balon

Senior Vice-President

Head, Real Estate Group

Armed Forces and Police

Mutual Benefit Association, Inc.

Col Bonny Serrano Cor. E. del Santos Ave.

Quezon City