July 18, 1996
DAR OPINION NO. 58-96
MS. MARY T . SAN JUAN
Philippine China Global Corporation
Unit I Megastate Building
980 Araneta Ave. Cor. Agno St.
Tatalon, Quezon City
Dear Ms. San Juan:
This refers to your query as to whether a DAR Clearance is required despite the fact that the property involved has been converted to industrial uses long before the effectivity of the Comprehensive Agrarian Reform Law (CARL) on 15 June 1988.
You state that the property subject of your query, covered by TCT No. T-77164 and situated at Bgy. Victoria, Alicia, Isabela, was sold by Juliana Rivera to the Isabela Electric Cooperative, Inc. (ISELCO) in 1974, that in 1979, the same property was sold by ISELCO to the Philippine China Global Corporation, which devoted the same to a housing project purposely for ISELCO employees; and that the Regional Office of PAG-IBIG at Tuguegarao, Cagayan requires a DAR Clearance to support the housing loan application, hence the instant query.
As it appears that no authority to convert the property has been obtained, we take it that the Clearance being required by PAG-IBIG is a DAR Clearance for Conversion. In this regard, please be informed that there is a need to obtain said DAR Clearance before the property can be legally devoted to purposes other than agricultural, such as for housing.
The conversion of the property to industrial uses long before the effectivity of CARL, if made without the requisite authority to convert, did not have the effect of legally placing the property outside the classification of agricultural land, hence the same still falls within the purview of CARL. It follows that a DAR Clearance for conversion must be first be obtained.
We advise that an application for Conversion be filed, following the procedures outlined in DAR Administrative Order No. 12, Series of 1994.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-USEC
LAFMA
Copy furnished:
OSEC
Document No. 96060467