June 26, 1998

DAR OPINION NO. 76-98

Ms. MELLIE LOPEZ

85 Cabling Street

Mabini Extension

Cabanatuan City

Dear Ms. Lopez:

This refers to your letter dated 15 May 1998 seeking for a legal opinion on whether or not the Provincial Agrarian Reform Officer (PARO) is justified in refusing to issue the DAR Clearance unless the previous owner thereof executes first an application for retention.

As culled from your letter, the subject property has an area of 3.5 hectares situated at Barangay Cabu, Cabanatuan City; that said property is previously owned by Victoria L. Tintero as evidenced by Transfer Certificate of Title No. T-38561; that said property was the subject of a contract of sale by and between Victoria L. Tintero (seller) and Mellie Lopez (buyer); that apart from the subject landholding, Victorial L. Tintero owns another parcel of land with an area of 2.2433 registered in her name under TCT No. T-38560; and that to sum up the aggregate areas of the two (2) landholdings, the same will obviously exceed the retention area as provided for under Section 6 of R.A. No. 6657 (Comprehensive Agrarian Reform Law).

Section 6 of R.A. No. 6657 expressly provides that "in no case shall retention by the landowner exceed five hectares". The clear intent of the aforequoted provision suggest that all landholdings in excess of the retention area shall be the subject of compulsory acquisition by the Department of Agrarian Reform for distribution to qualified farmer-beneficiaries. The right of the farmer-beneficiaries to own directly or collectively the lands they till is premised on Section 2 of R.A. No. 6657 (Declaration of Principles and Policies) for them to enhance their dignity and improve the quality of their lives through greater productivity of agricultural lands.

Moreover, Section 73 (a) of R.A. No. 6657 prohibits the ownership or possession, for the purpose of circumventing the provisions of said Act, 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. Thus, any sale or transfer of agricultural lands by the landowner to avoid CARP coverage is a violation of said provision of law.

In view of the foregoing, the PARO of Nueva Ecija is therefore justified in refusing to issue the DAR clearance as a pre-requisite to registration with the Register of Deeds because the transaction is in effect a circumvention of the provisions of R.A. No. 6657.

Thank you for communicating with us and 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

Copy furnished:

Regional Director

DAR-Region III

Dolores, San Fernando, Pampanga

Provincial Agrarian Reform Officer

DAR-Provincial Office

Mabini Ext., Cabanatuan City

Nueva Ecija South

Municipal Agrarian Reform Officer

DAR-Municipal Office

Cabanatuan City

Register of Deeds

Cabanatuan City