July 2, 1996
DAR OPINION NO. 46-96
Arch. Regino P. Kho
Senior Vice-President
Central Land Inc.
3rd Floor State Centre
333 Juan Luna St.
Binondo, Manila
Dear Arch. Kho:
This has reference to your queries concerning properties located at Brgy. Majada, Calamba, Laguna which are portions of a DAR Landed Estate. You state that a broker is offering these properties to you but the TCTs have annotations regarding Commonwealth Act 539, RA 1162, RA 1400 and RA 3844. In this regard, you pose the following queries:
1) Can a corporation or an individual buy the said properties?
2) Can we cause the cancellation of the annotations at the back of the TCT? On what ground?
3) Can we cause the conversion of these properties for non-agricultural purposes? On what grounds/basis?
Anent your first query, it is submitted that corporations are not qualified to be transferees of lots in landed estates, considering that the same were intended for distribution to bona-fide tenants, occupants or private individuals who will work the lands themselves.
As regards the transfer of said lots to individuals, it is clearly provided in the TCTs that the same may only be done with the written consent of the Secretary of the Department of Agrarian Reform. This means that a permit for said transfer must first be obtained from the DAR. Moreover, the qualifications of the transferee shall be subject to DAR evaluation.
Anent your second query, if by "annotations at the back of the TCT" you refer to the condition that except by hereditary succession the lot involved shall not be subdivided, sold, transferred or encumbered without the written consent of the DAR Secretary, it is believed that you do not possess the requisite legal personality to cause the cancellation of said condition.
As regards your last query, lots in landed estates may be the subject of applications for conversion, except when they are irrigable as provided in Administrative Order No. 20, Series of 1992 of the Office of the President. Attached is a copy of A.O. 20, Series of 1992 and DAR A.O. 12, Series of 1994, for your reference.
We hope to have clarified matters with you.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA