March 20, 1997

DAR OPINION NO. 32-97

Atty. Wilfredo M. Moreno

27 Simeon Lacson St.,

Gloria Heights Subdivision

Antipolo, Rizal

Dear Atty. Moreno:

This refers to your letter requesting for a DAR Clearance regarding the properties you inherited from your parents. Specifically, you wish to be clarified whether the Extrajudicial Settlement of Estate which you executed together with four (4) other co-heirs can be registered in your respective names.

You state that your deceased parents have left parcels of residential and agricultural lands located in Nueva Ecija; that as heirs thereof, you agreed to divide among yourselves all these properties including the donation of one-half hectare to a friend in consideration of the love and affection the latter has shown to your father during his last years in life; and that your purpose in registering the same is for your individual disposition. Hence, this request.

At the outset, please be clarified on the following basic rules regarding the coverage of lands under R.A. No. 6657 (otherwise known as the Comprehensive Agrarian Reform Law or CARL):

1.         Only public and private lands suitable for agriculture are mandated for coverage under CARL to be redistributed to qualified farmer-beneficiaries. This means that the residential land mentioned in your letter may be transferred without the need for a DAR Clearance; and

2.         As of the effectivity of CARL on 15 June 1988, a landowner (i.e., each of the heirs of Eusebia Moreno who died on April 2, 1984 including Leon Moreno who was still alive at that time — the latter died only on October 19, 1993) is allowed a maximum of five (5) hectares landownership ceiling of agricultural land, and the excess shall be acquired and redistributed to qualified Agrarian Reform Beneficiaries (ARBs) as determined by the DAR (Section 6, par. a and Section 73-A of R.A. No. 6657).

From the foregoing, it is clear that the agricultural properties in issue were still partly the subject of CARP coverage, particularly the aggregate share and inheritance of Leon Moreno beyond the legally allowable 5-hectare land ownership ceiling, coverage thereof to be reckoned and effected upon the effectivity of R.A. No. 6657 on June 15, 1988. Thus, the entire agricultural landholding shall be allocated among the heirs and covered under CARP in the following manner:

Conjugal property of Leon                      =          20.7777 hectares

and Eusebia Moreno                                          (9.6036 has. Plus

                                                                                          11.1741 has.)

Paraphernal property of Eusebia            =           3.12070 has.

Conjugal share of Leon                            =        10.38885 has.

Share of each compulsory heir

from the conjugal share of

Eusebia upon her death                            =       1.731475 has.

Share of each compulsory heir

from paraphernal property of

Eusebia                                                             0.52011 has.

Total lands of Leon before his

death                                                           =   12.640435 has.

Total share of each of the

5 heirs before June 15, 1988                   =         2.251585 has.

Area in excess of the 5-hectare

land ownership ceiling of Leon

reckoned as of June 15, 1988                 =          covered by CARP

Accordingly, on the assumption that the herein reported agricultural properties are the only actual aggregate landholdings of the heirs, the Deed of Extrajudicial Settlement of Estate cannot be granted a DAR Clearance for registration in their respective names unless the disposition of the subject agricultural properties is in accordance with the foregoing apportionment and computation.

We hope to have clarified you on the matter.

Very truly yours,

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning