October 8, 1996

DAR OPINION NO. 85-96

ATTY . DOMINGA F . CALANGLANG

Ground Floor Park Tower

628-630 Tomas Mapua St.

Sta. Cruz, Manila

1003

Dear Atty. Calanglang:

This has reference to your letter seeking opinion on whether a DAR Clearance or any documentary requirement is needed to effect registration of the Deed of Absolute Sale with the Register of Deeds.

You state that your client Miss Florence L. Lichaytoo, a Filipino citizen, is negotiating to buy a property situated at La Trinidad, Benguet; that the area she intends to buy is only 3,164 square meters; and that the said property is covered by a Free Patent issued by the Department of Environment and Natural Resources in favor of Roger Ong married to Gladys Ong on 17 December 1990 and covered by OCT No. P-2855.

At the outset, we wish to clarify that a DAR Clearance is not a validation of the transaction thereof. Rather the DAR Clearance for the registration of the transaction signifies that the sale, transfer or reconveyance covered thereby is not in contravention of R.A. 6657. (Comprehensive Agrarian Reform Law), and therefore, registration of the subject property eventually follows. If the landholding falls under CARP coverage, the application for DAR Clearance shall be denied and the property shall be acquired and distributed to qualified farmer-beneficiaries pursuant to CARL.

Neither shall, the compliance of DAR Clearance be dispensed with on the ground that the area involved is unsubstantial. The reason is the fact that compliance of said requirement is mandatory in order to prevent circumvention of R.A. 6657.

In fine, DAR Clearance is still required in order to effect registration of the Deed of Absolute Sale with the Register of Deeds.

We hope to have clarified the matter with you.

Very truly yours,

(SGD.) LORENZO R. REYES

OIC-Undersecretary
LAFMA