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VALIDITY OF SALE OF LAND COVERED BY LAND REFORM LAW

Q. Greetings with God’s Love, Peace and Protection. I am so blessed by your knowledge  and wisdom in legal arena. I am rooting always on your youtube because it really helpful,  informative and very understandable. Keep up the good work Atty. 

On the other hand, I am writing to you and your honorable office with regard to our land  transactions.  

 There is a CLOA land which is pledged(prenda or sinangla) by the owner in the amount  of 40,000 in which it expires on July 2022 to a fellow farmer. Then, the owner negotiated the  said farmer to buy the said land in the amount of 200, 000.00 but he refused it because he  cannot afford to that big amount and he said that you will sell it to other people. It was  negotiated in that instance because the owner needs money for the hospital bills, it is  emergency and that 200,000 is good for installment.  

The owner approaches us to buy that property and she told us to give us 25, 000 as partial  payment because it will be used for hospital bills and the rest of amount will be paid on the  latter years. So they agreed. Then my father gave them 150, 000 as the second payment, so  a total of 175,000 is the money being given to the owner with written and signed documents  to attest the payment in the barangay.  

Then they agreed that the remaining-will be fully paid on July 2022 when the prenda or  pledge expires. My question to this, is this correct transactions? Is it valid?  

We will wait on July 2022 and in that period, we will tilled and use the land. Is it also validate?  

Do we have any deficiencies? What are we going to do? Did the fellow farmer can go the  DAR?  

He is not the owner and not a beneficiary relatives. The title of the land is still in the hands of  the owner? What is the rights of the fellow farmer? 

Lastly, what are we going to do with these transactions? 

ANS: Under R.A. No.6657- Comprehensive Agrarian Reform Law(CARL), the CLOA  beneficiary is prohibited to sell, transfer or convey the right to use or any  usufructuary right over the land he acquired by virtue of being a beneficiary. 

If the CLOA is still within the 10-year holding period reckoned from the date of the issuance  of the CLOA and the actual possession of the land reform beneficiary, the law prohibits its  sale or encumbrance(prenda or sangla) except the said transactions are course through the  government financial institution. Any violation of this restriction renders the transactions null  and void and the land may be taken back by the DAR or the LandBank as the case may be.  

 That assuming that the 10-year holding has already lapsed, kindly take notice of the  following:  

Transferability of CLOA after the 10-years holding period: 

a. The 10-year period is reckoned note only from the date of the CLOA award but from the ACTUAL POSSESSION of the land reform beneficiary and the  holder of the CLOA 

b. Full payment of the 30-year amortization instalment from the LandBank c. Upon full payment of the property Tax. 

d. Secure prior clearance from DAR authorizing the sale of the CLT or CLOA 

 Assuming that the earlier prenda/sangla is valid as it was executed beyond 10-year  holding period and assuming further that on July 2022, the mortgagor failed to redeem the  mortgage, the mortgagee cannot just appropriate and take physical possession of the  property and becomes the owner thereof automatically. This is pactum commissorium ang  against the law.  

 If at all, there must be a foreclosure of the mortgage(extrajudicially or judicially depending  on the tenor of the mortgage agreement) and an auction sale must be made over the  property to highest bidder. The mortgagee may also participate in the bidding. After the  foreclosure the mortgagor or his/her heirs have the period redemption within one(1) if done  extrajudicially to redeem the property or have an equity redemption of not more than 90  days, at the discretion of the court , if the foreclosure was done judicially.  

 Based on the above, answers you are in a better position whether you have complied with  the requirements as provided by law. 

 As regards the tenant farmer tilling the land, legit tenants enjoys security of tenure and  have the right to continue tilling the land regardless of the new owner; and 

 Finally, confer with the DAR and the Land Bank and confirm the status of the CLOA,  whether the same is still valid and subsisting. XXXXX

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