May 9, 2003

DAR OPINION NO. 06-03

MEMORANDUM

TO                :     OIC-PARO Abundio T. Baliong, MNSA
                          DAR Provincial Office
                          2nd Floor, Salvacion Bldg.
                         Gen. Luna St., Davao City

SUBJECT    :     Retention Limit and Disposition of Agricultural Lands

 This refers to your letter-query requesting for opinion on the matter of retention limit and disposition of agricultural lands hereunder quoted:

"May a vendor who had previously disposed of his/her retained  agricultural landholding and subsequently reacquired another agricultural landholding validly dispose of the same? If so, may a clearance/certification be issued by DAR approving such subsequent disposition?"   SDEHCc

You stated that sometime in 2001, Antonio Ong sold a 3.3153 hectare agricultural land under TCT No. T-332362 to Sharon Lao; that said transaction was not duly registered in the Register of Deeds and no DAR Clearance was sought or issued pertaining to the transaction; that Sharon Lao applied for the issuance of DAR clearance/certification for the sale of the 2.2533 hectare portion of the said agricultural land (TCT No. T-332362) to Mary Michelle L. Silva and Katherine L. Silva; that records revealed that in 1995, Sharon Lao had previously sold an agricultural land with an area of 4.9889 hectare under OCT No. P-11925 in favor of Espiridion Reyes; that the sum total of the landholding held by Sharon Lao is 8.3042 hectares which exceeded the maximum limit of landholding allowed by law; that on the basis thereof, your Office denied the aforesaid application for DAR clearance/certification on 13 September 2002; that on 03 December 2002, Sharon Lao's legal counsel filed a letter-request for reconsideration of the denial of the application contending that after they sold the 4.9889 hectares in 1995, they had no other landholding, hence, it should not be added to the 3.3153 hectare they just acquired; and they contended further, that, at present, Sharon Lao cannot be said to own 8.3042 hectares of agricultural land.

Relating to the issues posed in your letter, the following are the pertinent provisions of Sections 6 (1st and 4th paragraphs), 70 and 73 (a) of R.A. No. 6657 (Comprehensive Agrarian Reform Law) and Item II.2 (a) of DAR Administrative Order No. 01, series of 1989 (Rules and Procedures Governing Land Transactions):

A.         Paragraphs 1 and 4, Section 6, R.A. No. 6657

". . . . . In no case shall retention by the landowner exceed five (5) hectares. . . . .

xxx                      xxx                      xxx

Upon the effectivity of this Act, any sale, disposition, lease management contract or transfer of possession of private lands executed by the original landowner in violation of this Act shall be null and void. . . . ." (emphasis supplied)

B.         Section 70, R.A. No. 6657

"SECTION 70.        Disposition of Private Agricultural Lands. — The sale or disposition of agricultural lands retained by a landowner as a consequence of Section 6 hereof shall be valid as long as the total landholdings that shall be owned by the transferee thereof inclusive of the land to be acquired shall not exceed the landholding ceiling provided in this Act.

Any sale or disposition of agricultural lands after the effectivity of this Act found to be contrary to the provisions hereof shall be null and void." (emphasis supplied)

C.        Section 73 (a), R.A. No. 6657 

"Section 73.  Prohibited Acts and Omissions. — The following are prohibited:

(a)        The ownership or possession, for the purpose of circumventing the provisions of this Act, of agricultural lands in excess of the total retention limits or award ceiling by any person, natural or juridical, except those under collective ownership by farmer-beneficiaries." (emphasis supplied)   TESICD

D.        Item II.2.a of DAR A.O. No. 1, series of 1989

 

 

"2.       The following transactions are not valid:

(a)       Sale, disposition, lease, management contract or transfer of possession of private lands executed by the original landowner prior to June 15, 1988, which are not registered on or before September 13, 1988, or those executed after June 15, 1988, covering an area in excess of the five-hectare retention limit in violation of R.A. 6657." (emphasis supplied)

 

The above provisions of law and guideline, taken together, clearly delimit the ownership and/or transfer/sale of agricultural lands to not more than the legally mandated retention limit or landownership ceiling of five (5) hectares. Thus, to issue a clearance or certification for the sale or disposition of agricultural lands in excess of the 5-hectare retention limit or landownership ceiling would be violative of the aforequoted provisions of law and guideline.

This opinion is rendered on the basis of the facts presented. However, if upon investigation it will be disclosed that the facts are different, then this opinion shall be considered null and void.

Please be guided accordingly.

(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning and Legal Affairs Office