July 31, 2001

DAR OPINION NO. 09-01

MS. FELOMINA C. ADAYA

62 Ephesian Street

 Friendly Village 2, Concepcion

Marikina City

Dear Ms. Adaya:

This refers to your letter dated 28 June 2001, requesting to be clarified on the following issues:

1)        What rules and procedures should apply and be followed to effect the registration of sale of awarded lands in favor of a transferee after the lapse of the 10-year prohibitory period? and

2)        What is the reckoning date in counting the 10-year period, is it the date when the original collective CLOA was issued, or, the date of the subsequent issuance of individual CLOA?

Regarding your first query, the rules and procedures laid down under DAR Administrative Order No. 8, series of 1995 (copy attached), allowing the transfer of awarded lands, shall apply. It should be stressed, however, that such allowance to transfer is not absolute. Section 6 of Executive Order No. 228 provides that lands acquired by farmer-beneficiaries may be transferred only after full payment of amortizations.

Moreover, the aforesaid implementing rules and regulations likewise provide that transfer of awarded lands under Presidential Decree No. 27, as amended by Executive Order No. 228 and Republic Act No. 6657 may be allowed provided the following shall be observed:

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

b)        that the buyer will not exceed the aggregate landowner ceiling provided by law; and

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

This means that the total landholdings that shall be owned by the buyer or transferee, inclusive of the land to be acquired, shall not exceed five (5) hectares, which is the land ownership ceiling.

Item II.2 of DAR Administrative Order No. 08, series of 1995 further provides, quote:

"It shall be understood that although the transfer of awarded land is allowed, the productivity of the subject land be maintained and any change in the nature of its use shall not be allowed except with the approval of the DAR under its rules on conversion or exemption." (emphasis supplied)

Referring to your second query, the reckoning date of the 10-year prohibition provided by law is the original issuance of the collective CLOA, the actual date of award.

Thank you for communicating with us and we hope to have clarified the matter.

Very truly yours,

(SGD.) VIRGILIO R. DE LOS REYES

Undersecretary for Legal Affairs, and Policy and Planning