April 27, 2001
DAR OPINION NO. 02-01
MR. JONATHAN R. FERRER
828 Jackielou Blanco Avenue
Jackielou Ville Subdivision
Sucat, Parañaque City
Dear Mr. Ferrer:
This refers to your request for clarification on the issue of mortgage of agricultural lands in connection with your property located at Bo. Amistad, Tayug, Pangasinan, covered under TCT No. 51202 with an area of 4,648 sq. meters.
Please be informed that mortgage of agricultural land by a landowner, as a rule, is not prohibited by law, it being an attribute of ownership. However, pursuant to Section 7 of Republic Act No. 3844, as amended by R.A. 6389 (Code of Agrarian Reforms), the agricultural lessee shall be entitled to security of tenure on his landholding, and, he cannot be ejected; therefrom unless authorized by the Court (now, the DAR Adjudication Board) for causes provided under said law. As elucidated in the case of Bernardo vs. Court of Appeals (168 SCRA 439), security of tenure is a legal concession to agricultural lessees which they value as life itself and deprivation of their landholding is tantamount to deprivation of their only means of livelihood.
More specifically, Section 10 of R.A. No. 3844, as amended, provides that the leasehold relation is not extinguished by the sale, alienation or transfer of the legal possession of the landholding. And, in case the agricultural lessor sells, alienates or transfers the legal possession of the landholding, the purchaser or transferee thereof shall be subrogated to the rights and substituted to the obligations of the agricultural lessor (owner).
We hope to have clarified the matter with you.
Very truly yours,
(SGD.) VIRGILIO R. DE LOS REYES
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
PARO Rolando Gamboa
DAR Provincial Office
Human Settlement Bldg.
Urdaneta, Pangasinan
The Municipal Agrarian Reform Officer
DAR Municipal Office
Tayug, Pangasinan