February 9, 1998

DAR OPINION NO. 18-98

CORA S. CHIOCO

Suite 2103 Makati Prime Tower

Kalayaan Avenue, Makati City

Dear Ms. Chioco:

This refers to your letter of 18 December 1997 requesting for a legal opinion on whether or not a tenant-farmer, who was awarded an agricultural lot under Operation Land Transfer (OLT), is qualified to acquire a residential lot in a subdivision. Your request is prompted by the fact that Mr. Melchor Saclolo, an OLT beneficiary, is claiming your two (2) adjacent residential lots, to wit: Lot 19-B-3 and Lot 19-B-4, consisting an area of 284 and 200 square meters, respectively, located at Barangay Hulo, Sto. Domingo, Nueva Ecija.

Please be informed that the basic rule is that an agricultural lessee is entitled to a homelot. Section 24 of R.A. No. 3844, as amended provides:

"Right to a Home Lot. — The agricultural lessee shall have the right to continue in the exclusive possession and enjoyment of any home lot he may have occupied upon effectivity of this Code, which shall be considered as included in the leasehold."

As applied to your query, if the residential lots claimed by an OLT beneficiary are considered his homelot pursuant to the aforequoted provision, then he has the right to be maintained therein, and shall enjoy first priority in the acquisition thereof, should the same be sold.

Please be informed however that the foregoing is based on the facts presented in your letter as it appears to us and does not constitute a ruling in any case that involves or may involve the same subject matter.

To provide you with additional information on your query, attached please find a copy of DAR Administrative Order No. 12 series of 1991.

Very truly yours,

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning