October 27, 1999
DAR OPINION NO. 57-99
Mr. Roberto G. Rosales
1245 T. Calo Street
Butuan City
Dear Mr. Rosales:
This has reference to your letter dated 09 January 1999 inquiring on whether or not you have the legal personality to reacquire the agricultural lands foreclosed by the Development Bank of the Philippines (DBP).
Gleaned from your letter are the following: that you previously owned two parcels of land, each parcel consists an area of 29,571 square meters located at Bo. Baan, Butuan City and covered by TCT No. RT-18442 and TCT No. RT-10559; that for and in consideration of P20,000.00 and P10,000.00, respectively, you sold the same to Wood Iron Manufacturing Inc.; that subsequently, Deeds of Sale were executed by Wood Iron over the same real properties with the same price purporting to be a return of the said parcels of land to you; that said properties although classified as commercial and industrial under the land use classification of the City Government of Butuan is still classified as agricultural in the tax declarations; that it appears that Wood Iron used the titles of subject parcels of land as collateral for loan with the DBP; that unfortunately, the loan was never paid by Wood Iron constraining the DBP to foreclose the said collateral; and that in September 14, 1993 by virtue of Executive Order No. 407 dated June 14, 1990, the DBP transferred the subject properties to the government through the Department of Agrarian Reform (DAR) for purposes of complying with the mandate of said executive order for distribution to qualified agrarian reform beneficiaries.
In the light of the foregoing, you submit that it is best that you reacquire subject properties, enumerating the following arguments: 1) that the price of the subject properties is excessive as the transfer cost to the government would amount to P1.9 million and you were allegedly informed by the MARO in Butuan City that they are not likely keen on awarding such properties to qualified agrarian reform beneficiaries because of the exorbitant price it carries; 2) that you were advised by the DBP to negotiate directly with the DAR regarding the re-acquisition of subject parcels of land on the understanding that should the said agricultural lands be no longer suitable for agriculture, it will not anymore be covered by the Comprehensive Agrarian Reform Program (CARP); and 3) that you are offering to donate twelve (12) hectares of your agricultural land in Agusan del Norte also for distribution to qualified CARP beneficiaries.
At the outset, we acknowledge your good intention in offering to donate twelve (12) hectares of your agricultural lands. However, DAR shall treat the same as an acquisition under the Voluntary Offer to Sell (VOS) scheme.
We take notice of your statement that the distribution (under CARP) of the said land would be disadvantageous to the government for the reason that the price is excessive. However, while you consider that P1.9 million is exorbitant, it seems illogical that you are offering an amount almost double in money and in real estate for the said parcels of land. The alleged personal and unofficial pronouncements of the MARO of Butuan City (granting they were made), does not and will not bind this Department nor the government as the DAR is mandated to encourage and undertake the just distribution of all agricultural lands. So even if the MARO is not interested in awarding the land, he being an implementor of the program, must abide by the provisions of the CARL.
As to your statement that the subject properties are no longer agricultural or suitable for agriculture, and therefore outside the coverage of CARP, the same cannot be upheld because even if the subject properties are indeed exempt from CARP coverage, still the exemption is not automatic as the law further requires that an application for exemption clearance has to be filed pursuant to DAR Administrative Order No. 06, Series of 1994 or Administrative Order No. 13, Series of 1990, as the case may be. The presumption is that subject properties are agricultural as per tax declaration.
Anent your interest in re-acquiring subject parcels of land, please be informed that DAR can no longer entertain the same since the ownership of the subject properties prior to its foreclosure is already with another person (i.e., Wood Iron Manufacturing Corporation). Further, subject properties have been foreclosed by the DBP and eventually transferred to this Department, pursuant to the provisions of E.O. No. 407. Moreover, reconveyance of subject landholdings should it be found that the land or portions thereof are no longer suitable for agriculture and, therefore, could not be given appropriate valuation by the Land Bank of the Philippines (LBP), can only be made to landowner-offerors, that is, the DBP in this case. This is pursuant to DAR A.O. No. 03, Series of 1996, as amended by A.O. No. 9, Series of 1997 (Reconveyance of Properties Turned-Over To DAR Pursuant To E.O. No. 407/448 And Lands Voluntarily Offered Under Section 19 of R.A. No. 6657 Found To Be Outside The Coverage Of CARP).
Thank you for communicating with us and we hope to have clarified you on the matters.
Very truly yours,
(SGD.) DANILO T. LARA
Undersecretary Legal Affairs, and Policy and Planning
Copy furnished:
The Municipal Agrarian Reform Officer
DAR-Municipal Office
Butuan City
The Provincial Agrarian Reform Officer
DAR-Provincial Office
J. Rosales Avenue
Butuan City