Scope: what is being sold
- Section 3 covers the sale by public auction of cottages and lots, including furniture and equipment.
- Section 3 covers sales for all cottages and lots covered by Republic Act No. 1361, as amended.
- Section 3 specially addresses cottages and lots located in Jungle Town and Engineer’s Hill.
- Section 4 governs who may purchase any of the covered cottages and lots, including furniture and equipment.
Public auction rules and appraisal limits
- Section 3 requires that cottages and lots, including furniture and equipment, be sold at public auction to the highest bidder.
- Section 3 requires that the auction be conducted under rules and regulations the President may prescribe.
- Section 3 prohibits selling any cottage and lot (including furniture and equipment) for less than the appraised actual value of that cottage and lot (including furniture and equipment).
- Section 3 requires that the Committee on Appraisal determines the appraised actual value used as the minimum sale price.
- Section 3 imposes a purchase restriction: no person or family may buy more than one cottage and the lot on which it is built, including furniture and equipment.
Restrictions on existing Baguio owners
- Section 3 prohibits participation in the public auction by any person who already owns residential property in Baguio.
- Section 3 treats the restriction as a participation bar for purposes of the auction sale of the covered cottages and lots.
Jungle Town and Engineer’s Hill: lessee option
- Section 3 requires that every cottage and lot in Jungle Town and Engineer’s Hill be sold at a price fixed by the Committee on Appraisal.
- Section 3 requires that the sale price for Jungle Town and Engineer’s Hill be paid in ten yearly installments.
- Section 3 grants a priority right to the present lessee or occupant of the cottage and lot in Jungle Town and Engineer’s Hill.
- Section 3 limits that right to present lessees or occupants who have continuously leased or occupied the property for not less than three years prior to the date of the approval of the amendatory Act.
- Section 3 conditions the right on the lessee or occupant’s exercise within six months from the date they are notified in writing that the cottage and lot are ready for sale and the price to be paid.
- Section 3 provides that if the present lessee or occupant refuses to exercise the right within six months, the property is sold in like manner as cottages and lots not located in Jungle Town and Engineer’s Hill.
If a lot is excluded for another purpose
- Section 3 addresses a consequence when a lot and/or cottage is excluded from the sale because the lot is needed as provided in Section two of the amended Republic Act No. 1361.
- Section 3 requires that the occupant or lessee be assigned another lot in Jungle Town and Engineer’s Hill.
- Section 3 requires that the assigned lot be sold to the occupant or lessee under the same rules provided for Jungle Town and Engineer’s Hill.
Government officials: purchase prohibition and exception
- Section 4 prohibits the purchase of the cottages and lots (including furniture and equipment) by:
- any government official or employee, and
- any member of his family.
- Section 4 declares that any sale to a prohibited government official or employee or a member of his family is void.
- Section 4 creates an exception allowing purchase where a government official or employee:
- is the occupant and lessee of a cottage continuously for at least five years prior to the approval of the amendatory Act, and
- does not own any residential lot in the City of Baguio.
- Section 4 grants that eligible official or employee preference in the sale of the cottage and lot so occupied and leased.
Amendment mechanism and operative changes
- Section 1 amends Sections three and four of Republic Act No. 1361 by replacing them with the operative provisions quoted in Section 1.
- Section 2 provides that the Act takes effect upon its approval.
- Section 1 integrates auction requirements, appraisal minimums, occupancy-based sales for specific areas, and restrictions on who may purchase into the amended scheme.