January 16, 1997
DAR OPINION NO. 02-97
Mr. Jorge A. Herrera
Asst. Vice-President
Collection and Acquired Assets Division
Legal Affairs Office
QUEDANCOR
103 Manalili Bldg., and 117 Ablaza Bldg.
E. Rodriguez Sr. Avenue, Quezon City
Dear Mr. Herrera:
This refers to your letter addressed to then BLAD Asst. Director Miguel Y. Puzon which was referred to us for opinion. You wish to be clarified whether a landowner whose property has been foreclosed by your Office may still redeem the same even though the prescribed redemption period had already lapsed, and pending the consolidation of ownership of the property in the name of your Office.
At the outset, we wish to state that Executive Order No. 407, mandates all government instrumentalities to surrender to the DAR all landholdings suitable for agriculture including all pertinent documents in their custody. It is understood however, that the government financing institutions and government-owned or controlled corporations cannot sell or, dispose of their lands which are suitable for agriculture directly to private individuals since the DAR has the right of first refusal in the sale or disposition of their lands which are suitable for agriculture.
Under the aforecited order and in consonance with Section 6 of R.A. 7881, while it is mandated that said provision allows government financial institutions and government-owned or controlled corporations to dispose to third parties their properties which were foreclosed on or after the effectivity of R.A. 7881, i.e. March 12, 1995, the same shall still be acquired if they fall under CARP coverage for distribution to qualified farmer beneficiaries as mandated under R.A. 6657 it goes without saying, however, that a former owner can no longer redeem his foreclosed property after the lapse of the prescribed redemption period, for the same has already been transferred or must be transferred to DAR for distribution to qualified farmer beneficiaries.
We hope to have clarified you on the matter.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning