August 14, 1996

DAR OPINION NO. 66-96

MR. ALBERTO D. MANTUA
Department of Agrarian Reform
Provincial Agrarian Reform Office
Sogod, Southern Leyte

Dear SARPO Mantua:

          This has reference to your letter seeking opinion on whether a landholding covered by a Free Patent can be the subject of a Voluntary Land Transfer-Direct Payment Scheme within the 5-year prohibitory period from the date of issuance.

          It is submitted that lands covered by Free Patents may be subject of Voluntary  Land Transfer-Direct Payment Scheme under the Comprehensive Agrarian Reform Program of the government, even within the 5-year prohibitory period from and after the issuance of said patent. This is so because an exception to the prohibition against transfer within said 5-year period is made in favor of the government or any of its branches, units or institutions. This exception is believed to cover transfers made under the land redistribution program of the government, specifically the Comprehensive Agrarian Reform Program Law. While it may true that under the VLT-DPS scheme, the transfer is made directly to the beneficiaries by virtue of an agreement between the landowner and said FBs, the fact remains that said transfer is made pursuant to CARL, and the agreement is subject to DAR approval under the provisions of DAR Administrative Order No. 13, Series of 1991. In fine, the coverage under CARL of lands covered by Free Patents, specifically thru the VLT/DPS scheme, is believed legally tenable, even within the 5-year period from the issuance of said patents.

          Please be guided accordingly.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA