December 14, 1999
DAR OPINION NO. 78-99
Mr. Luis G. de Castro, Jr.
925 Zone 8
Bulan, Sorsogon
Dear Mr. Castro:
This refers to your letter-query dated 04 January 1999 categorized into two (2) sets of queries.
I. In your first group of queries, you state the following as background: that your titled land in Brgy. Bolos, Juban, Sorsogon approximately eighty (80) hectares is comprised of two (2) lots, namely Lot 4465-A (approximately 51 hectares) and Lot 565-B (approximately 29 hectares); that everybody in your town and in Brgy. Bolos knows said properties as owned by you; that to your surprise, the DAR (Department of Agrarian Reform) through its Municipal Office declared only Lot 4465-A as covered by CARP (Comprehensive Agrarian Reform Program) last October 17, 1997 leaving the other part uncovered maybe because there is no tenant, although two (2) hectares of it is riceland, approximately eight (8) hectares is coconut land and the rest is mountainous; that you and your brothers and sisters decided to declare your retention on the other side; and that as to the other part, due to the soaring interest rate of your loan, you now decide to sell Lot 565-B. Your queries are quoted as follows:
"1. Can I still sell Lot 565-B considering that it is not covered by CARP?
2. Can I execute Deeds of Direct Sale Under RA 6657 (DPS Form No. 7) to would-be buyers?
3. How should I go about the sale? What must I do and what documents can I execute?
4. Can CARP still cover our property in Brgy. Bolos again even if a period of time has already passed? Are we to undergo the ordeal of CARP's coverage for a second time?"
Pertinent to your queries are the provisions of Republic Act No. 6657 (Comprehensive Agrarian Reform Law), particularly Section 6 thereof which provides that each landowner is entitled to retain a maximum of five (5) hectares of his agricultural land, while the rest shall be distributed to qualified beneficiaries; and Section 70 which further provides that the sale or disposition of agricultural lands retained by a landowner 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 five (5) hectare-landholding ceiling. Retention Area refers to that parcel of land selected by the landowner as such to remain under his full ownership and control after his landholding has been acquired by the government or covered by CARP and distributed to the beneficiaries, and is evidenced by a Certificate of Retention issued by the Provincial Agrarian Reform Officer (PARO) of the province where the land is situated. Hence, in order that transfer of your lot can be validly undertaken, it is hereby advised that you apply first for retention.
As regard your statement that Lot 565-B is not covered by CARP, please be informed that even if said lot or a portion thereof is indeed exempt from CARP coverage, still the exemption is not automatic as the law requires that an application for exemption clearance is to be filed pursuant to DAR Administrative Order No. 06, Series of 1994 or DAR Administrative Order No. 13, Series of 1990, as the case may be. However, the agricultural portions of said lot shall still be covered under CARP.
We take your second and third queries as referring to Direct Payment Scheme under Sections 20 and 21 of R.A. No. 6657. In this case, the Policy Statement of Administrative Order No. 02, Series of 1995 provides that a landowner whose land is subject to acquisition under R.A. No. 6657 may, with the concurrence of his qualified agrarian reform beneficiaries (ARBs), voluntarily transfer his land directly to them. Negotiations for VLT/DPS between the landowner and his qualified beneficiaries must be completed and the agreement arrived at must be submitted within one (1) year from date of receipt by the DAR of the Notice or Application for VLT/DPS. Otherwise, the land shall be acquired by the government and transferred to qualified ARBs pursuant to R.A. No. 6657.
The procedures under the Voluntary Land Transfer/Direct Payment Scheme are outlined under the operating procedures of DAR A.O. No. 02, Series of 1995 as amended by A.O. No. 08, Series of 1997. For a detailed outline, we attach herewith xerox copies of said administrative orders for your information.
As regards the coverage of agricultural lands under CARP, it is basic that the application of the law to a particular property is made only once. That is, if a landowner's property has been subjected to CARP coverage, at no instance shall his retention be taken again without his consent for redistribution to farmer-beneficiaries. However, any other agricultural land of a landowner beyond his retention area shall likewise be covered under CARP.
II. As background to your last set of queries, you state that since it is Lot 4465-A that was covered by CARP, it was there where you were told to declare your retention; you have also now decided to sell your retention of five (5) hectares which is untenanted as you are the one who works on it; and that you applied for DAR Clearance and found out that you have to apply for retention first. Hence, you are now inquiring on how long a time should you wait for your sale to be finished and the muniments of title to be completed since all your supporting papers are already prepared and available.
The disposition of your agricultural land (assuming it is your retention) is valid as long as the total landholding that shall be owned by the transferee thereof inclusive of the land to be acquired shall not exceed the landholding ceiling provided in R.A. No. 6657. As far as DAR is concerned, where all the documentary requirements for Application for DAR Clearance are submitted to DAR and the land transaction is thereafter evaluated to be not in violation of the provisions of R.A. No. 6657 and its implementing guidelines, a DAR Clearance shall be issued which in effect clears the transfer as regular and valid.
Anent your query on what remedies are available or actions could you take against some people from the Department of Agrarian Reform who allegedly fail in their responsibilities or refuse to do their jobs, assuming there really exists some valid and legal grounds to file for an administrative case against them, we advise that you file a sworn statement or complaint before this Department's Legal Service.
Thank you for communicating with us and we hope to have clarified the matters with you.
Very truly yours,
(SGD.) FEDERICO A. POBLETE
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
The Regional Director
DAR, Region V
Legaspi City
The Provincial Agrarian Reform Officer
DAR Provincial Office
Lakandula Drive, Gogon
Legaspi City
The Municipal Agrarian Reform Officer
DAR Municipal Office
Juban, Sorsogon