April 14, 1997

DAR OPINION NO. 39-97

PARO Homer F . Tobias

DAR Provincial Office

Puerto Princesa City

Palawan

Dear PARO Tobias:

This has reference to your radio message sent to DAR Central Office requesting for comments and recommendations relative to the action for reconveyance of the unacquired portions filed by Mrs. Alicia R. Alegria, for and in behalf of Compania Consolidada de Caramay, Inc.

You state that the subject property is a 60.3476 hectares of land, situated at Caramay, Roxas, Palawan, embraced under Transfer Certificate of Title (TCT) No. T-4643 and registered in the name of Compania Consolidada de Caramay, Inc.; that said property has been the subject of Voluntary Offer to Sell (VOS) in favor of the government as evidenced by the Certification issued by Antonieto D. Justo of the Register of Deeds of Palawan; that as a result of the said VOS, TCT No. 4643 previously registered in the name of Compania Consolidada de Caramay, Inc. has been cancelled and in lieu thereof TCT No. 10380 was issued in the name of the Republic of the Philippines; that per Certification of Atty. Salvador O. Sarto of the Landowners Compensation Division II of the Land Bank of the Philippines dated 29 January 1996, only 789.0484 out of 957.7023 hectares were approved for acquisition, the rest were excluded for being not suitable for agriculture; that out of the total approved value of P11,763,465.91 as payment for the acquired properties, P11,074,572.75 representing an area of 689.8677 with CLOAs were already released, the balance to be released upon receipt of additional CLOAs and LVO Certification that FBs are ready to move and actual cultivation is taking place for the rawland portion; and that as a result of the rejection of the remaining portion for not being suitable for agricultural production, Compania Consolidada de Caramay, Inc. filed an action for reconveyance for them to take physical possession and control over the real property involved.

Please be informed that Section 4 of R.A. No. 6657 (Comprehensive Agrarian Reform Law) pertinently provides that: "the CARL shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands as provided in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture. The aforequoted provision underscores that only lands suitable for agriculture and nothing else are coverable under the Comprehensive Agrarian Reform Program.

Moreover, DAR Administrative Order No. 03, Series of 1996 (copy attached) expressly provides that if the landholding is partially covered but an R.P. title or CLOA has been issued for the whole property, a segregation survey of the landholding shall be conducted. The Deed of Transfer shall be amended to include only the CARP covered areas. The portion not covered shall be reconveyed to the concerned government instrumentality or landowner-offeror through the execution of a Deed of Reconveyance. Said implementing rules and regulations likewise provide that Emancipation Patents (EPs) or Certificates of Land Ownership Award (CLOAs) already generated for landholdings to be reconveyed shall have to be cancelled first pursuant to DAR Administrative Order No. 2, Series of 1994 prior to the actual reconveyance. The cancellation shall either be through administrative proceedings in cases where the EP/CLOA has not yet been registered with the ROD or through quasi-judicial proceedings in cases where the said EP/CLOA has already been registered.

With the exception of homelots, therefore, all lands which are not found suitable by DAR for agricultural production upon proper investigation and determination (wherein a petition for reconveyance has been duly filed and the legal procedures under existing laws, rules and regulations substantially complied with) shall be reconveyed to Compania Consalidada de Caramay, Inc. pursuant to DAR Administrative Order No. 03, Series of 1996. The exclusion of homelots from reconveyance is legally rooted from the prefatory statement of DAR Administrative Order No. 12, Series of 1991 which provides that: "the homelot, as an integral part of the farm and as an indispensable factor in farm operations, may be acquired and distributed to the agrarian reform beneficiary (ARB) in accordance with the land transfer process of CARP".

Please be guided accordingly.

Very truly yours,

(SGD.) ARTEMIO A. ADASA, JR.

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Mrs. Alicia R. De Alegria

Campania Consolidada De Caramay, Inc.

138 San Juan Street, Pasay City

Director Gloria J. Fabia

BLAD, DARCO