24 Abella V San Juan

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LAND, TITLES & DEEDS Agreement is Void for Contravening PD 27

PD 27  PD 27 provides for only two exceptions


to the prohibition on transfer, namely,
Abella v San Juan (1) transfer by hereditary succession
G.R. No. 182629 Feb 24, 2016 and (2) transfer to the Government
 Thus, PD 27 is clear that after full
FACTS: payment and title to the land is
acquired, the land shall not be
 Francisca San Juan was a tenant of the transferred except to the heirs of the
Balatas Property owned by the Abellas beneficiary or the Government.
covered by CLT No. 843(159301)  If the amortizations for the land have
 Benigna, daughter of Francisca, sought not yet been paid, then there can be no
permission from, and was allowed by transfer to anybody since the lot is still
Mrs. Abella, wife of Dr. Abella, to owned by the Government.
construct a small house on the Balatas  Sales or transfers of lands made in
property. violation of PD 27 and EO 228 in favor
o Thus, on different occasions, of persons other than the Government
Benigna and her children by other legal means or to the farmer's
constructed their residential houses successor by hereditary succession are
on the property.  null and void. 
 Later, when Mrs. Abella requested o The prohibition even extends to
Benigna and her children to vacate the the surrender of the land to the
property, they refused, claiming former landowner.
ownership.  In this regard, the DAR is duty-bound to
 This prompted Mrs. Abella to file an take appropriate measures to annul the
action for unlawful detainer which was illegal transfers and recover the land
granted by the MTC unlawfully conveyed to non-qualified
 Heirs of Francisca filed a complaint for persons for disposition to qualified
quieting of title and declaration of beneficiaries.
ownership and possession of real  In this case, the intended exchange of
property with prayer for a TRO, properties by the parties as expressed
preliminary injunction and damages in the Agreement and in the Deed of
against the Abellas   Donation entailed transfer of all the
O The Complaint prayed for a rights and interests of Francisca over
decision declaring respondents as the Balatas propetiy to Dr. Abella.
absolute and lawful owners of the o It is the kind of transfer
Balatas property  contemplated by and
 The Abellas alleged that Dr. Abella and prohibited by law.
Francisca executed the Agreement for  Thus, petitioners' argument that the
the exchange of lots because the Balatas Agreement was merely a relocation
property was reclassified as a high agreement, or one for the exchange or
density commercial, residential and swapping of properties between Dr.
urban area and hence no longer suitable Abella and Francisca, and not a transfer
for agriculture.  Since the Balatas or conveyance under PD 27, has no
property was exchanged with the merit.
Cararayan property on January 28, o A relocation, exchange or swap
1981, Francisca ceased to be its owner of a property is a transfer of
long before she died on November 19, property
1996. Thus, respondent heirs could not
have inherited the Balatas property The Prohibition under PD 27 applies even
 Respondent Heirs countered that the if the farmer-beneficiary has not yet
reclassification by the City Government acquired full title
of Naga did not convert the use of the
land from agricultural to residential or  Title refers not only to that issued upon
commercial. The authority to convert compliance by the tenant-farmer of the
the land use of a property is vested by said conditions but also includes those
law in the DAR. They further argued rights and interests that the tenant-
that the Agreement is null and void as it farmer immediately acquired upon the
contravened the prohibition on transfer promulgation of the law.
under PD 27. Thus, the approval by the o To rule otherwise would make
DAR was of no moment. a tenant-farmer falling in the
category of those who have not
RELEVANT RULING: yet been issued a formal title to
the land they till-easy prey to
those who would like to tempt
them with cash in exchange for
inchoate title over the same.
 Following this, absolute title over lands
covered by Presidential Decree No. 27
would end up in the name of persons
who were not the actual tillers when
the law was promulgated
 The prohibition extends to the rights
and interests of the farmer in the land
even while he is still paying the
amortizations on it
 PD 27 provides that "in case of default,
the amortization due shall be paid by
the farmers' cooperative in which the
defaulting tenant-farmer is a member,
with the cooperative having a right of
recourse against him
 Thus, since the Agreement is void, the
respondents, as heirs of Francisca, have
the right to the Balatas property.

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