May 28, 1999

DAR OPINION NO. 37-99

ATTY . PATERNO L. ESMAQUEL

Suite 502, 5TH Floor, CLMC Bldg.

EDSA, Greenhills

Mandaluyong City

Dear Atty. Esmaquel:

This refers to your letter dated 22 February 1999 addressed to the undersigned, seeking opinion on whether the Petition for Exemption from Compliance with the condition for development of property as set forth in the DAR Conversion Order dated 27 March 1998 has the effect of suspending the land development phase of the area as mandated under DAR Administrative Order No. 07, Series of 1997.

As culled from your letter with its attachments, Viceroy Land, Inc., a corporation duly organized and existing under Philippine laws is the owner of parcels of land, with an aggregate area of 39.1926 hectares, more or less, located at Barangays Banga I and Tabang, Plaridel, Bulacan; that at the time of the acquisition of the said parcels of land, the land use classification is already that of residential and commercial pursuant to DAR Conversion Order No. 030217003-018-102 dated 27 March 1998; that the DAR Conversion Order issued in the name of Sergio Ortiz, et al., is subject to the condition that the land development phase of the area shall be completed within one (1) year after the issuance of the Order of Conversion where the area is five (5) hectares or less. Should the area exceed five (5) hectares, an additional year shall be allowed for every five (5) hectares or a fraction thereof but in no case shall the completion of development extend beyond five (5) years from the issuance of the Order of Conversion; that on 11 November 1998, the Housing Land Use and Regulatory Board (HLURB) issued a certification to the effect that the classification of the subject parcels of land is residential, commercial and/or build up area as per Plan and Zoning Ordinance of Plaridel, Bulacan, adopted and approved by the HLURB under Resolution No. 38-2, Series of 1980, and therefore, exempt from the coverage of Republic Act No. 6657 (Comprehensive Agrarian Reform Law).

It is beyond cavil that the purpose of DAR Administrative Order No. 07, Series of 1997 in imposing said condition as an integral part for the issuance of DAR Conversion Order is to prevent circumvention of coverage under Comprehensive Agrarian Reform Program (CARP). Without such restriction, a landowner/developer who is granted a DAR Conversion Clearance would be at liberty to render such condition at naught by abandoning indefinitely the land development phase of the area covered by DAR Conversion Order. To prevent such occurrence, the law mandatorily requires that the development phase of the area shall be completed within the period fixed by law depending on the area involved.

Considering the mandatory character of the Conversion Order to complete the development phase within the periods fixed, it is submitted that the filing of the aforesaid Petition for Exemption from Compliance with the condition for the development of the property will not necessarily have the effect of suspending the mandatorily required land development phase.

We will not, however, categorically render an opinion that the subject Petition would have the effect of suspending the development phase as it may pre-empt the final disposition of your client's formal petition dated November 14, 1998, on the same subject.

We hope to have clarified the matter with you.

Very truly yours,

(SGD.) DANILO T. LARA

Undersecretary for Legal Affairs, and Policy and Planning

Copy furnished:

Dir. Nestor R. Acosta

DAR-Region III

Pedmar Building, Dolores

San Fernando, Pampanga

Linda Hermogino

OIC-FARO II

Aquino Avenue

Baliwag, Bulacan

The Municipal Agrarian Reform Officer

DAR-Municipal Office

Plaridel, Bulacan