June 23, 1998
DAR OPINION NO. 75-98
Jose T . Domingo
Executive Director
CLUPPI
Department of Agrarian Reform
Diliman, Quezon City
Dear Director Domingo:
This refers to your Memorandum dated 29 May 1998 relative to the request of Mt. Arayat Development Company to reconsider the Conversion Order of Denial No. 034011020-(110)-98 dated 27 March 1998.
A perusal of the records readily reveal that the subject property has an aggregate area of 117.80 hectares, more or less, situated at Barangays Ayala and Sto. Niño, Magalang, Pampanga; that said property was awarded to farmer-beneficiaries way back in 1987 and 1988, respectively, by virtue of Certificates of Allocation although the actual distribution of titles was made only in 1994; and that as a result of such distribution controversy arose as to when the five (5) year prohibitory period as enshrined in Section 65 of Republic Act No. 6657 (Comprehensive Agrarian Reform Law) should be reckoned.
Please be informed that the five (5) year prohibitory period within which an awarded land should not be converted or reclassified as provided for under Section 65 of R.A. No. 6657 is reckoned from the date of registration of Emancipation Patents (EPs) or Certificates of Land Ownership Award (CLOAs) with the Register of Deeds and not from the issuance of Certificates of Allocation. This is evident under Joint DAR-LRA Memorandum Circular No. 20, Series of 1997 (copy attached) which provides that the reckoning date of the registration of the EPs and CLOAs shall be the date of entry in the Primary Entry Book. The same reckoning date is likewise provided for under Item IV-B of DAR Administrative Order No. 7, Series of 1997. As held by the Supreme Court in the case of Virginia Calalang vs. Register of Deeds of Quezon City (G.R. No. 76265, March 11, 1994), it is the act of registration of the deed of conveyance which serves as the operative act to convey the land registered. The act of registration creates constructive notice to the whole world of the fact of such conveyance.
Corollarily, it is only from the date of registration of EPs and CLOAs with, the Register of Deeds by which the five (5) year prohibitory period should commence to run since it is only then that the ownership of the awarded land has been legally and actually transferred in the name of the farmer-beneficiaries. It would therefore be incorrect to assume that the ownership is transferred upon mere issuance of Certificate of Allocation for the same does not constitute as proof of ownership unlike that of EPs and CLOAs.
We hope to have clarified the matters with you.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
Mr. Rogelio D. Sangil
President/CEO
Mt. Arayat Development Company, Inc.
G/F, Unit 14 Tropical Palm Building.
103 Dela Rosa Street, Legaspi, Village
Makati City