May 27, 1996
DAR OPINION NO. 20-96
Atty. Tirso J. Cabili
33 Calaca St., Napocor Village
Tandang Sora, 1116 Quezon City
Dear Atty. Cabili:
This refers to your queries relative to the desire of your client to acquire 10 hectares of agricultural land to be converted into a memorial pack. You state that you have received offers of cocolands with areas of over 11, 13, and 22 hectares, respectively. Your specific queries are:
1. Besides rice and corn, are coconut lands covered and included in PD No. 27 and RA No. 6657?
2. If so what are the requirements for the owner to sell, cede, dispose, transfer and convey his retained portion of 5 hectares along with the children at 3 hectares each?
3. Is legal compliance: (a) filing of application and (b) processing of local venue and jurisdiction? and
4. Does the approval for authority to dispose/sell such retained portion require further sanction from DAR and/or other agency?
Anent your first query, please be informed that only tenanted private agricultural lands primarily devoted to rice/corn are covered by P.D. No. 27. Republic Act No. 6657 (The Comprehensive Agrarian Reform Law or CARL) covers all public and private lands devoted to or suitable for agriculture, regardless of tenurial arrangement and commodity produced. This means that it is RA 6657 that covers coconut lands and not P.D. 27.
As regards your second query, we wish to clarify that only 5 hectares of a landowner's agricultural land is subject to retention. The 3-hectare portion awarded to the landowner's child is not part of retention but is a preferred award in favor of the child, provided he meets the two qualifications specified in Section 6 of CARL, to wit: that child was at least 15 years of age on 15 June 1988 (date of effectivity of CARL) and that he was actually titling the land or directly managing the farm as of said date. Moreover, it is only the 5-hectare retained portion that can be sold, transferred or disposed of. The area awarded to the child is subject to the condition in Section 27 of CARL that it shall not be sold, transferred or conveyed except through hereditary succession or to the government or the LBP or to other qualified beneficiaries for a period of ten years from its award.
Anent the sale of the retained area, the vendor is required to submit an Affidavit of Retention, while the vendee must submit an affidavit stating that he does not own more than 5 hectares of agrilands, including the area purchased. Said documents are needed for the issuance of a DAR Clearance, which in turn is a requisite for the registration of the transaction by the Register of Deeds. In this connection, we do not see how your client can purchase 10 hectares of agricultural lands, considering that Section 73(a) of CARL prohibits the ownership or possession, for the purpose of circumventing said Act, of agricultural lands in excess of 5 hectares. We submit, however, that lands covered by a DAR Order of Conversion are not subject to said restriction, as it could be reasonably presumed that the ownership or possession thereof would no longer be for the purpose of circumventing CARL.
Anent your third query, since you have verbally clarified that you wish to be informed on the procedure for conversion, attached please find a copy of DAR Administrative Order No. 12, Series of 1994. Among others, it specifies the venue for the filing of applications for conversion (VII-3) and the jurisdiction over said applications (VIII-C). May we add that a land covered by a DAR Notice of Acquisition cannot be the subject of an application for conversion.
Anent your last query, as explained above, a DAR Clearance is required for the registration by the Register of Deeds of the disposition or sale. The DAR Clearance signifies that the transaction is not in circumvention of CARL and may therefore be registered.
We hope to have clarified matters with you.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA