March 5, 1998
DAR OPINION NO. 31-98
MARO Nelson M . Elizalde
Department of Agrarian Reform
San Jose, Antique
Dear MARO Elizalde:
This refers to your request for opinion on whether or not an awarded land covered by an Emancipation Patent (EP) or a Certificate of Land Ownership Award (CLOA) which has been fully paid can be used as a property bond for the provisional release of an accused (the beneficiary himself or his relatives).
Your request is prompted by the fact that the Register of Deeds of Antique refused to annotate in the EP/CLOA of a farmer-beneficiary a lien by way of a property bail bond. You believe that such refusal is not proper since it reduces the transactibility of the awarded lands and deprives the farmer-beneficiary from making use of the land even if his liberty is at stake. It is your opinion that lands awarded to farmer-beneficiaries who have paid their amortizations in full have the right to offer said lands as property bond for their Provisional liberty.
Our answer to your query must be qualified. As regard farmlots covered by EPs which are fully-paid, we submit that they may now be used as property bail bonds. This can be deduced from Section 6 of Executive Order No. 228 which allows the transfer of ownership of lands acquired by farmer-beneficiaries under P.D. No. 27 after full payment of amortizations and even if the transfer is made within the ten (10) year prohibitory period. However, this provision does not operate as a blanket authority for the indiscriminate transfer of awarded lands, and certain criteria which are set forth under DAR Administrative Order No. 8, Series of 1995 (Item II. 3) must be satisfied in order that transfer over awarded lands can be effected. On the other hand, if the land has not yet been fully paid, the rights to the land may be transferred or conveyed, only with prior approval of the DAR, to a qualified beneficiary who shall cultivate the same.
While it is true that the above provision of law speaks only of sale or transfer of awarded lands, the same may relatively apply by analogy to your request considering that if the property bond is confiscated, ownership over the property may now be parted with and the same may be subjected to DAR guidelines on the transfer of awarded lands.
As regard farmlots covered by CLOAs or lands acquired under R.A. No. 6657, we submit that within ten (10) years from award the same cannot be offered as property bonds in view of the Prohibition Provided under Section 27 of R.A. No. 6657, to quote: "Lands acquired by the beneficiaries under this Act may not be sold, transferred Or conveyed except through hereditary succession, or to the government, or to the Land Bank of the Philippines, or to other qualified beneficiaries for a period of ten (10) years".
We hope to have enlightened you the matter.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
OSEC
Doc. No. 97120377