October 11, 1996
DAR OPINION NO. 89-96
PARO Isidro A. Lamdagan
DAR-Provincial Office
Tagbilaran City
Dear PARO Lamdagan:
This refers to your request that the DAR issue a guideline with respect to landholdings rejected by the Land Bank of the Philippines subject for reconveyance to government financial institutions. You state that during the DAR-DBP-LBP dialogue held on 29 July 1996, issues were raised concerning matters relative to the foreclosed properties of GFIs. One specific problem that was presented by the LBP representative is that of a certain landowner, owning an area of a 10-hectare land classified as agricultural per tax declaration, which was foreclosed by DBP and thereafter turned over to DAR pursuant to EO 407. However, during the ocular inspection, subject landholding was rejected by LBP-DA-DAR inspection/valuation team for being non-arable. You are now seeking clarification on the following queries, to wit:
1. Who will issue a certification that the land is not suitable for agriculture, or that its valuation is rejected for the same reason.
2. Can DBP now dispose the entire area to a single vendee citing as reason that since it is rejected, it follows that it is excluded from CARP coverage?
3. Will the rejection now place the land in the category of lands excluded from CARP?
4. Is there a need for an application for exclusion after the same has been rejected?
5. Are the parties still required to apply for a DAR clearance?
Anent your first query, it is the Department of Agriculture that has the authority to issue a certification that the landholding is no longer suitable or agriculture. The authority includes land which was refused valuation by the LBP after it has been found to be no longer suitable for agriculture. (DAR-AO 3, Series of 1996, copy attached ).
As regards your second query, since subject landholding is now considered outside the coverage of CARP due to its non-suitability to agriculture, the same shall be reconveyed to the concerned instrumentality or landowner-offeror. As such, the original transferor is now free to dispose of his property to any person who may have interest over the same. However, DAR AO 3, Series of 1996, provides that in case the landholdings are occupied by ARBs, the DAR shall give them full assistance either by relocating them to another site covered by CARP, or to negotiate with concerned agencies in case the FBs are interested in buying the land.
Anent your third and fourth query, it is explicit under AO 3 that the landholding shall be reconveyed to the original transferor. This means that said landholding is now excluded from CARP coverage. However, in order to facilitate a valid transfer of the property from the original transferor to a vendee, a confirmation letter from the DAR is still required.
As regards your last query, if by the issuance of a DAR clearance you mean the process of reconveying a particular landholding or portion thereof, there is a need to file a petition for reconveyance with either the provincial, regional or national office of DAR and thereafter an Order of Reconveyance will be issued by the Regional Director.
We hope to have clarified matters with you.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA
Copy furnished:
OSEC
Doc. No. 96080323