March 10, 1998

DAR OPINION NO. 36-98

ATTY . NESTOR R. ACOSTA CESO II

Regional Director

DAR-Region I

Lingsat, San Fernando

La Union

Dear Atty. Acosta:

This refers to your letter dated 15 December 1997 requesting for an opinion relative to the question of whether or not it is the ministerial duty of the Regional Director to issue an Order approving the transfer of lands awarded to Agrarian. Reform Beneficiaries (ARBs).

As can be gleaned from your letter, you state that there are numerous requests pending in your Office, regarding the transfer of lands awarded to ARBs; that DAR Administrative Order No. 08, Series of 1995 as supplemented by Administrative Order No. 06, Series of 1996 basically set the guidelines governing the transferability of said lands, nonetheless, it is silent on two (2) aspects: (1) the qualifications of the transferee, and (2) application of the ten (10) year period as inscribed in the title itself; and that it is a common occurrence in all the requests pending in your Office that most of the transferees one not farmers, who obviously cannot attend to the farmholding activities to maintain the productivity thereof.

Please be informed that Section 27 of R.A. No. 6657 (Comprehensive Agrarian Reform Law) expressly provides that lands acquired by beneficiaries under said Act may not be sold, transferred or conveyed except through hereditary succession, or to the government, or to the Land Bank of the Philippines (LBP), or to other qualified beneficiaries for a period of ten (10) years. Moreover, the provisions of Executive Order No. 228 dated July 17, 1987 and DAR A.O. No. 8, Series of 1995, when taken together, provide that ownership of lands acquired by a farmer-beneficiary (whether under P.D. No. 27 or R.A. No. 6657) may be transferred after full payment of amortizations, provided the following conditions shall be observed:

a)         That the productivity of the land shall be maintained;

b)         That the buyer will not exceed the aggregate land ownership ceiling provided by law; and

c)         That the ownership ceiling of five (5) hectares shall be imposed.

It bears stressing, on the other hand, that lands acquired under Presidential Decree No. 27 may be transferred to anyone, even if not qualified beneficiaries, provided the amortizations have been fully paid and even within the 10-year period from the award thereof. There are exceptions, however, to the foregoing rule as provided for under Policy Statements Nos. 5 and 6 of A.O. No. 8, Series of 1995, quote:

"5.     If the land was identified as tenanted after 1972, the transfer may be allowed only after the lapse of ten (10) years from the date of recognition of the tenants as stated in the Order of Placement issued pursuant to DAR Memorandum Circular No. 2, Series of 1978 (P.D. No. 27, as amended by E.O. No. 228).

6.      If awardee is a transfer action reallocatee pursuant to an Order of Reallocation, transfer may be allowed provided ten (10) years have elapsed from the date of recognition of the reallocatee as stated in the final Order of Reallocation issued by the Regional Director (RD)/DAR Secretary. However, transfer to a reallocatee by virtue of succession by an heir shall not be subject to the ten (10) year period prohibition (P.D. No. 27, as amended by E.O. No. 228 and R.A. No. 6657)."

The aforementioned rule and its exemptions are evident under the provisions of A.O. No. 8, Series of 1995 (Policy statements) and likewise under Item III. D.3 of the same guideline where the Regional Director is empowered to sign the order of approval or disapproval of the transfer and forward the signed order to the Legal Division for proper disposition.

Finally, it must be reiterated and stressed that in order to prevent circumvention of R.A. No. 6657, the ownership or possession of agricultural lands in excess of the total retention limits or award ceilings by any person, natural or juridical, except those under collective ownership by farmer-beneficiaries, is expressly prohibited under Section 73 (a) of the said law.

Please be guided accordingly.

Very truly yours,

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning