February 9, 1998
DAR OPINION NO. 14-98
ATTY . CHRISTINE P. MARRERO
RCLUPPI Head Executive Member
Department of Agrarian Reform
Cordillera Administrative Region
Baguio City
Dear Atty. Marrero:
This refers to your letter with the following queries, to wit:
1) Is the HLURB Regional Officer authorized to issue a license to sell to proponent developers before the conversion of the property by the Department of Agrarian Reform?
2) What is the possible course of action which may be taken by the tax declarants if they want to change the use of the land they are claiming into some other use, i.e. residential purposes?
It is your contention that the issuance of a license to sell by the Housing and land Use Regulatory Board (HLURB) is pre-empting any action from this Department and that issuance of said license is tantamount to authorizing the sale and disposition of the agricultural land to the detriment of farmer-beneficiaries who may be displaced by such action.
We find your contention meritorious. The issuance of license to sell involving agricultural lands prior to issuance of the pertinent DAR Clearance in a way pre-empts the action that may be taken by this Department on any application for conversion/exemption. The HLURB is not barred however from issuing said license in areas already legally devoted to other uses. This holds true because while the license to sell is not one among the requirements which are obtained from other government agencies for review of the DAR in applications for exemption/conversion, its premature issuance will in effect render nugatory the purposes and may possibly circumvent the implementation of the Comprehensive Agrarian Reform Program (CARP).
In your second query, you state the following, quote: "The rules on conversion apply only to private agricultural lands and does not cover lands which are only tax declared. Under Joint DAR-DOJ Administrative Order No. 5, Series of 1994, however, . . . the date of the issuance of the tax declaration to the transferee of the property with respect to unregistered lands . . . shall be made the basis of any action to be filed against the violator". Please note that agricultural lands covered by Tax Declarations though untitled are also private properties which may also be the subject of conversion. Clearly, Joint DAR-DOJ A.O. No. 5, Series of 1994 points out that the date of the issuance of tax declaration to the transferee of the property with respect to unregistered lands is for the determination as to whether or not the transaction is in violation of the provisions of the law.
Moreover, Administrative Order No. 07, Series of 1997 (Omnibus Rules And Procedures Governing Conversion Of Agricultural Lands to Non-Agricultural Uses) defines private agricultural lands as lands devoted to or suitable to agriculture, as defined in R.A. No. 6657 and owned by natural or juridical persons or by the government in its proprietary capacity. Item V of said Administrative Order provides the following, quote: "These rules shall cover all private agricultural lands as defined herein regardless of tenurial arrangement and commodity produced. It shall also include all untitled agricultural lands and agricultural lands reclassified by LGUs into non-agricultural uses after June 15, 1988, pursuant to Memorandum Circular (M.C.) No. 54, Series of 1993 of the Office of the President and those proposed to be used for livestock, poultry and swine-raising as provided in DAR Administrative Order No. 9, Series of 1993".
In connection with the foregoing, owners of properties covered by Tax Declarations who intend to change the use of their lands must file an application for conversion with the DAR pursuant to the provisions and documentary requirements as provided for under DAR A.O. No. 7, Series of 1997. Kindly see attached copy of said guideline for the complete list of documentary requirements on application for conversion.
Please be guided accordingly.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
The Regional Director
DAR-CAR
Baguio City