December 13, 1996
DAR OPINION NO. 131-96
Mr. Patricio Fantilanan
c/o Bobby Dumol
Dansuli, Isulan, Sultan Kudarat
Dear Mr. Fantilanan:
This has reference to your letter dated April 22, 1996 inquiring as to whether or not your group, as farmers/actual occupants of certain parcels of land foreclosed by the Philippine National Bank (PNB), located at Busok, Bagumbayan, Sultan Kudarat, can acquire said property under the Voluntary Land Transfer/Direct Payment Scheme (VLT/DPS) from the PNB. You wish to be clarified on the following matters, to wit:
1. Can the Government Financing Institutions (GFIs) legally transfer their foreclosed properties direct to the purchasers under the VLT/DPS?
2. Can the purchaser legally acquire thru VLT/DPS said properties though title has not yet been transferred to the Republic of the Philippines?
3. If direct transfer of GFIs foreclosed properties to purchasers is allowed, what is the basis of valuation? Will it be the DAR rules and regulations or that of the bank?
Anent the first and second queries, Administrative Order No. 2, Series of 1995 in relation to Section 20 of R.A. 6657 provides that a landowner whose land is subject to acquisition under R.A. No. 6657 may, with the concurrence of his qualified ARBs, voluntarily transfer his land directly to them. The term landowner as used in RA 6657 refers to both natural or juridical person. Clearly therefore, GFIs as juridical persons may transfer their foreclosed properties under VLT/DPS, provided that the purchasers are determined by DAR to be the same individuals who would be eligible to purchase the land in case the government, through Compulsory Acquisition (CA) or Voluntary Offer to Sell (VOS), acquired the land for sale; that the area of land to be transferred to the ARBs should be not less than the area which the government, through CA, would otherwise acquire for redistribution; and that the terms and conditions of the VLT/DPS should not place the ABRs in disadvantageous position.
The above cited issuance further provides that negotiations for VLT/DPS between the landowner and his qualified beneficiaries must be completed and the agreement arrived at must be submitted within one (1) year from the date of receipt by the DAR of the Notice or Application for VLT/DPS.
Anent your third query, in the event that the GFIs decide to directly transfer their foreclosed properties to qualified ARBs, the pertinent DAR Rules and Regulations on land valuation should be applied.
We hope to have clarified the matters with you.
Very truly yours,
(SGD.) LORENZO R. REYES
OIC-Undersecretary
LAFMA
Copy furnished:
OSEC
Doc. No. 96040603
Ms. Gloria J. Fabia
BLAD Director, DARCO
The Philippine National Bank
Cotabato City Branch
Cotabato City