Sale of Land covered by Emancipation Patents

DAR OPINION NO. 70-97  Atty.  Atty. Wilfredo T . T . Garcia Cabagnot, Subido, Garcia and Garcia Law Firm Suite 318 FEM II Building, Aduana St. Intramuros, Manila Dear Atty. Garcia: This has reference to your follow-up letter dated 05 June 1997 seeking opinion on whether an awarded land covered by Emancipation Patent (EP) be the subject of a contract of sale? As glea gleane ned d from from your your lett letter er,, the the subj subjec ectt prop proper erty ty has has an area area of  Seventeen Thousand One Hundred Ninety (17,190) square meters situated at Bara Barang ngay ay San San Juan Juan,, Tayt Taytay ay,, Riza Rizal; l; that that said said prop proper erty ty is cove covere red d by Emancipation Patent No. A-358752 and registered in the name of Mrs. Dolores De Leon; and that your client, Mrs. Aurora Bacani, is contemplating to buy the subject landholding but she is in quandary whether she can validly acquire said agricultural land covered by Emancipation Patent. Please be informed that awarded lands covered by Emancipation Patents (EPs), undoubtedly, can be the subject of a contract of sale. As elucidated by the Supreme Court in the Case of Engracia of  Engracia Vinzons-Magana Vinzons-Magana vs. Hon. Conrado Estrella, et al., 201 SCRA 536, 536, the issuance of Emancipation Patent confers on the farmer-grantee a vested right of absolute ownership in the landholding — a right which has become fixed and established and is no longer open to doubt and controversy. Thus, Emancipation Patent is a proof of ownership which can  be the subject of a contract of sale in the exercise of one's right of ownership without violating the prohibitions embodied in Section 27 of  R.A. No. 6657 (Compr (Comprehe ehensi nsive ve Agrari Agrarian an Reform Reform Law) Law) relati relative ve to sale sale or dispos dispositi ition on of  awarded lands for a period of ten (10) years from their award because said  provision of law solely applies to awarded lands under  R.A. No. 6657 covered  by Certificates of Land Ownership Award (CLOAs) and not to PD 27 lands covered by EPs. Moreover, DAR Administrative Order No. 08, Series of 1995 (copy attached) further supports the view relative to sale or disposition of awarded lands under  P.D. No. 27. 27. Specifically, transfer of awarded lands under  P.D.  No. 27, 27, as amended by Executive Order No. 228 may be allowed, provided the following shall be observed: a) that the productivity of the land shall be maintained;  b) that the buyer will will not exceed the landowner landowner ceiling provided provided  by law; and c ) that the ownership ceiling of five ( 5 ) hectares shall be imposed. You furthe furtherr allege alleged d that that the DAR. DAR. has has subseq subsequen uently tly approv approved ed the conversion of the land's classification from agricultural to residential. This has to be substantiated. Concomitantly, it bears stressing at this juncture that under  Administ Admi nistrativ rativee Order No. 20 of the the Office Office of the Presiden President, t, it expres expressly sly  provides that the following shall not be subject to and are non-negotiable for 

conversion: 1) all irrigated lands where water is available to support rice and other crop production, and all irrigated lands where water is not available for  rice and other crop production but are within areas programmed for irrigation facility rehabilitation by the Department of Agriculture and National Irrigation Administration; and 2) all irrigable lands already covered by irrigation projects with firm funding commitments at the time of the application for land use conversion. From the foregoing, we hope to have clarified the matter with you. Very truly yours, (SGD.) ARTEMIO A. ADASA, JR. Undersecretary  for Legal   Affairs, and   Policy and   Planning