Sale and Preference of Lots
- The Land Tenure Administration is empowered to sell subdivided lots without public bidding to lessees or bona fide occupants qualified to acquire public lands.
- Vacant lots may be sold to qualified persons not disqualified to acquire public lands.
- Lessees and occupants deprived of lots due to street or alley widening shall be given preferential rights to vacant lots.
- If vacant lots are insufficient, the allocation shall be by lottery.
- Unaccommodated lessees or occupants receive preference for lots on reclaimed areas or housing projects by the People’s Homesite Corporation.
- Ownership limitation: a person may not purchase more than one lot; violation results in loss of rights and forfeiture of payments.
- Selling price capped at five pesos per square meter; associated expenses (streets, sewage, survey) not added to price.
- Existing streets and alleys as of approval date must not be altered unless public interest demands.
Payment Terms
- Purchasers may pay without down payment over 15 years in 180 equal monthly installments.
- Annual interest rate of 4% applies to installments.
- Option to pay in cash or multiple installments allowed.
Restrictions on Transfer and Encumbrance
- Lands cannot be encumbered or alienated within 15 years except to the Government, its branches, or legal banking corporations.
- Lands are protected from satisfaction of prior debts during this period.
- Mortgaging is allowed even within the 15-year restriction.
- Conveyances are subject to repurchase by the original purchaser or legal heirs within five years.
Consequences of Illegal Agreements
- Any contracts violating the Act result in reversion of property and improvements to the Government.
- Payments made are forfeited.
Succession and Enforcement of Payment
- Upon purchaser's death before full payment, widow and children succeed rights and obligations.
- Non-payment of six consecutive or cumulative installments triggers legal action by the Land Tenure Administration Chairman.
- The Government’s lien may be enforced by foreclosure and sale.
- Only persons without residential lots in Manila, Quezon, Pasay, or suburbs and qualified to acquire public lands may participate in the auction.
- Auction purchaser obtains indefeasible title.
Implementation and Regulation
- The Land Tenure Administration shall implement the Act in consultation with the Federation of Tondo Foreshore Land Tenants Association.
- The Administration’s Chairman may issue rules and regulations necessary for implementation.
Appropriation and Repeal
- P400,000 appropriation from National Treasury funds for carrying out the Act.
- All laws or parts contrary to this Act are repealed or modified accordingly.
Effectivity
- The Act takes effect immediately upon approval.