March 24, 1998
DAR OPINION NO. 38-98
MRS. ELVIRA A. TING
President
Philippine Estates Corporation
22/F Citibank Tower
8741 Paseo de Roxas
Makati City, 1200
Dear Mrs. Ting:
This refers to your letter dated 03 March 1998 inquiring on whether or not the Order of Exemption issued by the Department of Agrarian Reform would have the same force and effect as that of an Order of Conversion of this Department.
You state that you have already filed an application for exemption over a parcel of land located at Barangay Tagapo, Sta. Rosa, Laguna, consisting of 2.6745 hectares and covered by Transfer Certificate of Title No. T-38701; that said property has already been reclassified by the Municipality of Sta. Rosa, Laguna pursuant to Municipal Ordinance No. XVIII, Series of 1981; that such being the case, the same fall squarely within the ambit of the Department of Justice Opinion No. 44, Series of 1990 which exempts the property from obtaining Conversion Clearance; and that any opinion that may be rendered on this matter would determine whether or not you will still withdraw your application for exemption.
At the outset, we wish to inform you that pursuant to Department of Justice Opinion No. 44, Series of 1990, all lands which have been reclassified as commercial, industrial or residential before 15 June 1988 (effectivity of the: Comprehensive Agrarian Reform Law) no longer need any conversion clearance. This unmistakable conclusion is further reiterated in DAR Administrative Order No. 06, Series of 1994 (copy attached) which provides that the authority of the DAR to approve conversion of agricultural lands to non-agricultural uses commences only from the date of effectivity of said law. Consequently, any landowner or his duly authorized representative whose lands are covered by DOJ Opinion No. 44, Series of 1990, and desires to have an exemption clearance from the DAR, should file an application for exemption.
From the foregoing, it is clear that the requirement of conversion clearance can be dispensed with by the landowner whose properties has been reclassified as residential, commercial or industrial before the effectivity of the CARL. However, notwithstanding the abovementioned unequivocal declaration, the owner thereof is still mandated to file an application for exemption.
In sum, the Order of Exemption issued by the DAR produces the same force and effect as in Order of Conversion for it perforce already dispenses with the requirement of conversion clearance. Thus, upon issuance of an Order of Exemption, any other requirement that adds nothing but rather demands unnecessarily more sets of requisites shall be deemed as entirely superfluous, hence, the same must accordingly be disregarded.
We hope to have clarified the matter with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning