Sale of NAFCO lands to occupants

All commercial and industrial lands of the public domain known as NAFCO lands that were transferred from the Board of Liquidators to the Bureau of Buildings and Real Property Management under Executive Order No. 290 (1958) are covered.
The Bureau of Buildings and Real Property Management must sell these NAFCO lands without bidding to actual occupants who do not own residential, commercial or industrial land (Section 1).
The sale to an actual occupant is allowed only when occupation in every case shall in no case be less than 10 years (Section 1).
Lots that are still unoccupied, or occupied but not sought to be bought by their actual occupants, or have occupation less than ten years must be disposed of through public auction among qualified persons who do not own residential, commercial or industrial lands (Section 1).
The President may reserve portions of the lots for the use of the national or local government, or for the use of corporations or entities owned or controlled by the government; reserved portions are excluded from sale/auction under the default rules (Section 1).

For covered lots sold to qualified actual occupants, disposition must be without bidding by the Bureau of Buildings and Real Property Management (Section 1).
For covered lots that do not meet the occupant and occupation requirements, disposition must be by public auction among qualified persons (Section 1).
Unless otherwise provided in Batas Pambansa Blg. 233, disposition of lands under the Act is governed by Commonwealth Act No. 141, as amended (Section 1).

In any negotiated sale under Section 1, the consideration must be not less than the assessed value and must be not more than the prevailing price in the vicinity of the lots (Section 2).
The assessed value and prevailing price standard must be determined by a committee of three (Section 2).
The committee must be composed of:
- the city or provincial assessor as chairman; and
- a representative of the Bureau of Buildings and Real Property Management; and
- the district land officer as members (Section 2).

Lands acquired under this Act cannot be sold or otherwise alienated within a period of five years from acquisition (Section 3).
Any sale or alienation within that five-year period requires prior approval of the Director of General Services (Section 3).

The Director of the Bureau of Buildings and Real Property Management must issue the rules and regulations necessary to implement Batas Pambansa Blg. 233 (Section 4).
The implementing rules take effect fifteen days after publication in a newspaper of general circulation (Section 4).

Any violation of Batas Pambansa Blg. 233 subjects the offender to:
- imprisonment of not less than six months and one day to six years and one day; and
- a fine of not less than PHP 400 but not more than PHP 1,000 (Section 6).

Sections two and three of Republic Act No. 477, as amended by Presidential Decrees Nos. 967 and 1304, are repealed or modified accordingly (Section 5).
All acts, executive orders, rules and regulations inconsistent herewith are repealed or modified accordingly (Section 5).