March 6, 1996

DAR OPINION NO. 11-96

Mr. Caesar R. Gillamac, Jr.

San Agustin, Madridejos

Cebu

Dear Mr. Gillamac:

This has reference to your letter seeking opinion on whether DAR Clearance is necessary to effect the transfer of an agricultural land with an area of less than 1,000 square meters.

Please be informed that DAR Clearance signifies that the transaction covered thereby is not in violation of RA 6657 (otherwise known as the Comprehensive Agrarian Reform Law or CARL), and therefore, the registration of the subject landholding eventually follows. If the landholding falls under CARP coverage, the application for DAR Clearance shall be denied and the property shall be acquired and distributed to qualified tenant/beneficiaries pursuant to CARL.

Neither shall a DAR Clearance be issued if the transferee is found to be the owner of more than 5-hectare landownership ceiling, including the property acquired, since ownership of more than 5 hectares of agricultural lands is prohibited under Section 73(a) of CARL. This is true even though the landholding is a retained area of the landowner.

We hope to have clarified the matter with you.

Very truly yours,

(SGD.) HECTOR D. SOLIMAN

Undersecretary
LAFMA