January 29, 1997
DAR OPINION NO. 12-97
Mr. Camilo Mostoles
Villaflor San Isidro, Isabela
Dear Mr. Mostoles:
This has reference to your letter inquiring whether you can redeem your property which was foreclosed by the Development Bank of the Philippines (DBP), Isabela Branch.
You state that you are the registered owner of a parcel of land which you mortgaged with the DBP for P35,000.00 in 1977; that due to your failure to pay the bank said property was foreclosed and later on ownership thereof was transferred to said bank in 1987; that you made representations with the bank to buy back said property but you were informed that you need a DAR clearance to effect transfer in your name.
Anent your query, Section 1 of Executive Order No. 407, Series of 1990 specifically provides: "All government instrumentalities including but not limited to government agencies, government owned and controlled corporations or financial institutions such as the Development Bank of the Philippines, . . ., shall immediately execute Deeds of Transfer in favor of the Republic of the Philippines as represented by the Department of Agrarian Reform and surrender to the latter department all landholdings suitable for agriculture including all pertinent ownership document in their custody, such as the owner's duplicate copy of the certificate of title, tax declarations and other documents necessary to effect the transfer of ownership. . . .."
Applying the aforecited rule, properties foreclosed by above mentioned institutions shall not be vested upon them. Rather said institutions shall execute immediately Deed of Transfer in favor of the DAR. The DAR will cause the transfer of ownership to it and once ownership has been transferred, the DAR, in coordination with the concerned agencies, will now determine who the qualified beneficiaries will be. In choosing the qualified beneficiaries, the DAR shall give preference to the former owner/s and their children. Since your property has already been foreclosed by the DBP, it goes without saying that your right to redeem said property has already ceased.
Thank you for communicating with us, and we hope to have enlightened you on the matter.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning