May 8, 1996
DAR OPINION NO. 19-96
Ms. Josephine S. Conde
354 Quezon Avenue, Quezon City
Dear Ms. Conde:
This has reference to your request for a DAR Order authorizing the cancellation by the Register of Deeds of the condition for the subdivision, sale, transfer or encumbrance embodied in TCT No. T-52643, to wit:
"that except by hereditary succession it shall not be subdivided, sold or in any manner transferred or encumbered without first obtaining the written consent of the Gov. of the LA and only to persons who are qualified to purchase said land under CA No. 539, RA 1162, as amended, RA No. 1400, as amended and/or RA No. 3844 or to government banking institutions or agencies or any private banking institution."
The instant request is anchored on the contention that said condition has been rendered moot and academic by the DAR Order dated 19 September 1991 authorizing the conversion for residential/commercial use of the property covered by TCT No. T-290551 (now TCT No. T-52643), along with two other contiguous parcels of land.
It is submitted that the DAR Order dated 19 September 1991 which authorized the conversion of the lot covered by TCT No. T-290551 (now TCT No. 52643) has rendered inapplicable the aforecited condition.
Records reveal that subject lot is within the Buenavista Estate, acquired by the government pursuant to Commonwealth Act No. 539. Section 1 of CA No. 539 provides:
"Section 1. The President of the Philippines is authorized to acquire private lands or any interest therein, through purchase or expropriation, and to subdivide the same into home lots or small farms for resale at reasonable prices and under such conditions as he may fix to their bona fide tenants or occupants or to private individuals who will work the lands themselves and who are qualified to acquire and own lands in the Philippines."
It is clear from the aforequoted provision that the purpose for the acquisition and the award by the government of small farms pursuant to said law is to provide the beneficiaries thereof with lots to cultivate. It could likewise be reasonably inferred that the requirement for approval prior to the subdivision, sale, transfer or encumbrance of the lot covered thereby is premised on the agricultural nature of the land. It follows that where, as in the instant case, the DAR has authorized the conversion of the land to residential/commercial use, said requirement for DAR approval no longer finds application. It is therefore believed that there is no longer any need to come to DAR for approval of the subdivision, sale, transfer or encumbrance of subject lot.
We hope to have clarified the matter with you.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA