December 24, 1998
DAR OPINION NO. 122-98
MR. CARMELO R. MARTINEZ
20 Buencamino Street
DBP Village, Almanza
Las Piñas, City
Dear Mr. Martinez:
This refers to your letter dated 24 September 1998 regarding your queries as regards coverage under the Comprehensive Agrarian Reform Program (CARP).
As stated, your parents and a brother are tenants of a nine (9) hectare private agricultural land located. at Sityo Usli, Barangay Sipa, Padre Burgos, Quezon. Said agricultural land comprises two (2) hectares of unirrigated riceland and the remaining portion is devoted to coconut land. The proceeds thereof are being divided without any dispute between the landowner and the tenants. You now wish to be clarified on some matters. Specifically, your queries are summarized as follows:
1. Is this agricultural land covered by CARP?
2. May the landowner validly sell, convey and dispose the whole property without the consent of the tenants?
3. What is the retention right of a landowner under the CARP?
4. Are the tenants entitled to any share on the subject agricultural land?
5. What is the area allowed by law to the tenants and how could they avail of this right?
The basic rule under Section 4 of R.A. No. 6657 is that the CARP covers, regardless of tenurial arrangement and commodity produced, all public and private lands devoted to or suitable for agriculture and not classified as mineral, forest, residential, commercial or industrial land. As applied to your first query, and for purposes of determining whether or not the said agricultural land falls under CARP coverage, the aggregate area of the said agricultural land shall be considered. Accordingly, all agricultural lands in excess of the five (5) hectare retention allowed a landowner and the three (3) hectare award to each of his children if qualified, are subject to acquisition and distribution to qualified beneficiaries pursuant to the provisions of R.A. No. 6657 (Comprehensive Agrarian Reform Law).
Anent your second query, our answer is no. The prohibition to dispose agricultural lands to avoid the implementation of the CARP is explicit under Section 6 of R.A. No. 6657 which provides that: "upon effectivity of the law (i.e., 15 June 1988) any sale, disposition, lease, management contract or transfer of possession of private lands executed by the original landowner in violation of this Act shall be null and void." Should the landowner decide to sell his tenanted or leased land, the landowner must first offer to sell the landholding to his tenant or lessee, who has the preferential right to buy the same under reasonable terms and conditions. This is in accordance with the right of pre-emption under Section 11 of R.A. No. 3844 as amended by Section 2 of RA. No. 6389. On the other hand, if the landholding is sold to a third person without the knowledge of the tenant, he may exercise his right of redemption, in which case, the tenant may repurchase the said landholding at a reasonable price and consideration (Section 12, R.A. No. 3844, as amended). The law does not, however, altogether prohibit the sale or disposition of agricultural lands by the landowner if the same is his retained area. Section 70 of R.A. No. 6657 provides that the disposition of the retained area shall be valid as long as the total landholding, including the land to be acquired by the buyer/transferee shall not exceed the landholding ceiling of five (5) hectares. This, however, is still subject to the right of pre-emption or redemption mentioned earlier. Please be advised that in all cases, the security of tenure of the tenant shall be respected.
Anent your third query, the landowner may retain a maximum area of five (5) hectares as provided for under Section 6 of R.A. No. 6657 which shall be compact and contiguous. Three (3) hectares may likewise be awarded to each child of the landowner, subject to qualifications provided for by law. The landowner's retained area is not subject to compulsory acquisition by the government for distribution to qualified beneficiaries.
Anent your fourth query, the law provides available options to the tenants of the subject 9-hectare agricultural land. Section 6 of R.A. No. 6657 provides that the tenants may choose to remain in the retained area as lessees or may alternatively opt to be the beneficiaries in the excess portion thereof (i.e., beyond the retained area) or in another agricultural land. If the tenants choose the first option, the landowner may not eject them in the retained area since although the retained area is not covered by the land acquisition components of CARP, it is still covered by the leasehold provisions under existing agrarian laws, rules and regulations. On the other hand, in case the tenants choose to be the beneficiaries in the excess portion to be covered by CARP or in another agricultural land, they lose their right as leaseholders to the land retained by the landowner. The right to exercise this option must be done within a period of one (1) year from the time the landowner manifests his choice of the area to be retained.
Anent your fifth query, the agricultural land covered by CARP shall be distributed directly to the qualified beneficiaries. Pursuant to Sections 22 and 23 of R.A. No. 6657, a qualified beneficiary is entitled to receive an area not to exceed three (3) hectares. Ownership of the land by the beneficiary shall be evidenced by a Certificate of Land Ownership Award (CLOA) which shall thereafter be registered with the Register of Deeds. The beneficiary shall then be allowed to take possession of the land and use it for production.
The foregoing, notwithstanding, we wish to state however that this opinion is merely advisory or clarificatory, and does not constitute as a decision on whatever case that might have been brought or will be brought before the proper forum.
Thank you for communicating with us and we hope to have clarified the matters with you.
Very truly yours,
(SGD.) DANILO T. LARA
Undersecretary for Legal Affairs, and Policy and Planning