August 29, 2001

DAR OPINION NO. 15-01

MR. ANTONIO E. CENON

First Vice-President

Filinvest Land Incorporated

173 P. Gomez St., San Juan

Metro Manila

Dear Mr. Cenon:

This refers to your letter dated 19 June 2001, seeking clarification on whether or not subject landholdings allegedly constituting the San Pedro Homesite Project sold to Filinvest by beneficiaries of the Laguna Settlement and/or Tunasan Estate located at San Pedro, Laguna, are exempt from land conversion requirements.

You alleged that the land wherein San Pedro Homesite now stands was originally titled in favor of the Republic of the Philippines under OCT 363 of the Register of Deeds of Laguna, known as the Laguna Settlement and/or the Tunasan Estate; that on 11 June 1978, Presidential Decree No. 1474 ordered the DAR to convert the whole 850-hectare San Pedro Tunasan Estate/Laguna Resettlement Project into residential, commercial, industrial or other non-agricultural purposes areas; that OCT 363 was subdivided into 1,015 lots of which 989 are disposable; that the National Housing Authority (NHA) awarded these lots to its beneficiaries; that some of the beneficiaries, specifically owners of lots 373, 328, 320, 321, 301, 302, 293, 294 and lots 1 and 3 of Pcs-04-004374, sold their lands to Filinvest; that these lands were consolidated and developed into what is now known as the San Pedro Homesite; that in light of Presidential Decree No. 1474 and the ruling of the Supreme Court in the case of "Natalia Realty, Inc., et al. vs. DAR, et al." (SC G.R. No. 103302, August 12, 1993) and DOJ Opinion No. 181, series of 1990, you believe that you are no longer required to secure a DAR certificate of exemption to develop the land into a housing project; and, that to settle any doubts, however, you are nonetheless requesting for a certification from our end to the effect that pursuant to Presidential Decree No. 1474, the lands constituting San Pedro Homesite Project is exempt from land requirements.

Pertinent provisions related to your query are Item II, 2nd paragraph of DAR Administrative Order No. 06, series of 1994, as amended (Guidelines for the Issuance of Exemption Clearance Based on Sec. 3 (c) of RA 6657 and the Department of Justice (DOJ) Opinion No. 44, series of 1990) and Section 3(d) of the amendatory DAR Administrative Order No. 01, series of 1999 (Revised Rules and Regulations on the Conversion of Agricultural Lands to Non-Agricultural Uses):

Item II, 2nd paragraph, Administrative Order No. 06, series of 1994:

"Department of Justice Opinion No. 44, series of 1990 has ruled that with respect to the conversion of agricultural lands covered by Republic Act No. 6657 to non-agricultural uses, the authority of DAR to approve such conversion may be exercised from the date of its effectivity, on 15 June 1988. Thus, all lands that were already classified as commercial, residential or industrial before 15 June 1988 no longer need any conversion clearance." (emphasis supplied)

Section 3(d), Administrative Order No. 1, series of 1999:

     Section 3.     Applicability of Rules. — These Rules shall apply to the following agricultural lands:

xxx                      xxx                      xxx

"Those reclassified to residential, commercial, industrial, or other non-agricultural uses on or after the effectivity of R.A. No. 6657 on 15 June 1988 pursuant to Section 20 of R.A. No. 7160 and other pertinent laws and regulations, and are to be converted to such uses. However, for those reclassified prior to June 15, 1988, the guidelines on securing exemption clearance shall apply." (emphasis supplied)

Citing Presidential Proclamation No. 1474 dated 11 June 1978, you claimed that the landholdings in issue, which are allegedly part of the San Pedro Tunasan Estate/Laguna Resettlement Project of the Department of Agrarian Reform, were declared suitable for residential, commercial, industrial or other non-agricultural purposes. On the assumption that said lands were classified as residential and non-agricultural before 15 June 1988, the date of effectivity of the Comprehensive Agrarian Reform Law (CARL), no further conversion order or clearance may be necessary. However, there is still the need to apply for exemption clearance pursuant to the aforequoted provisions of the DAR guidelines abovementioned to ascertain that said lands are indeed exempt from CARP coverage and no agrarian laws, rules and regulations are violated. The provisions of P.D. No. 1474 do not warrant automatic exemption of subject landholdings from the requirement of DAR exemption clearance.

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

Very truly yours,

(SGD.) VIRGILIO R. DE LOS REYES

Undersecretary for Policy, Planning and Legal
Affairs Office

Copy furnished:

The Provincial Agrarian Reform Officer

DAR Provincial Office

San Luis Bldg., Capitol Compound

Sta. Cruz, Laguna

The Municipal Agrarian Reform Officer

DAR Municipal Office

San Pedro, Laguna