August 14, 1998

DAR MEMORANDUM CIRCULAR NO. 12-98

TO                :     All DAR Regional Directors, Provincial
                           Agrarian Reform Officers, Municipal
                           Agrarian Reform Officers, and Other
                           Personnel Concerned

SUBJECT    :     Retention Rights of Landowners and
                           Award to their Qualified Children

In order to ensure that the retention rights of landowners are fully respected, the following clarifications on the rules and regulations governing the retention limits of landowners are hereby issued:   EADSIa

1.         Section 6 of RA 6657 provides that the landowner may retain a portion not exceeding five (5) hectares and shall have the right to choose the area to be retained, which as far as practicable shall be compact and contiguous. In addition, each child of the landowner may also be awarded three (3) hectares of the landholdings provided the child is at least 15 years old and is actually tilling or managing the farm. Landowners whose lands have been covered by PD 27 shall be allowed to keep the area originally retained by them thereunder.

2.         In the case of "Association of Small Landowners in the Philippines, Inc. et al. Versus The Honorable Secretary of Agrarian Reform" (G.R. No. 78742, 14 July 1989), the Supreme Court ruled:

"Landowners who were unable to exercise their rights to retention under P.D. 27 shall enjoy the retention rights granted by RA No. 6657, under the conditions therein prescribed."

3.         However, in the resolution of the motion for reconsideration filed by the petitioners on the same Case, the Supreme Court ruled:

". . . landowners who, prior to the promulgation of the CARL, complied with the requirements under LOI Nos. 45 and 52 regarding registration of their landholdings, shall be allowed to enjoy the seven hectare retention limit provided in P.D. 27 . . . As for the landowners who continuously refused to comply with the registration requirement, they cannot, in view of the CARL, demand that their retention limit be determined in accordance with P.D. 27."

4.         Pursuant to these Supreme Court rulings and Sec. 6 of RA 6657, the following guidelines were issued:

1.         DAR Administrative Order No. 11, Series of 1990 and

2.         DAR Administrative Order No. 04, Series of 1991

5.         You are therefore instructed to follow the rules and regulations set Forth in the aforesaid administrative orders, copies of which are hereto attached for ready reference. All Regional Directors are hereby directed to follow through implementation hereof and continually monitor compliance herewith.   ScaATD

For strict compliance.

(SGD.) HORACIO R. MORALES, JR.

Secretary