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Batas Pambansa Bilang 877
AN
ACT PROVIDING FOR THE STABILIZATION AND REGULATION OF, RENTALS OF
CERTAIN
RESIDENTIAL UNITS FOR OTHER PURPOSES.
chan
robles
virtual law library
BATAS
PAMBANSA BILANG 877AN
ACT PROVIDING FOR THE STABILIZATION AND REGULATION OF, RENTALS OF
CERTAIN
RESIDENTIAL UNITS FOR OTHER PURPOSES.chanrobles virtuallaw libraryred
chanrobles virtual law librarySection
1. Monthly Rentals and
Maximum Increases. — Beginning July 1, 1985 and for a duration of two
and
a half years thereafter ending on December 31, 1987, monthly rentals of
all residential units not exceeding four hundred eighty (P480.00) pesos
shall not be increased by the lessor by more than the rates herein
provided:chanroblesvirtuallawlibrary
chanrobles virtuallaw libraryredPeriodchan
robles virtual law librarychan robles virtual law libraryMaximum
Increase
July
1, 1985 to December
31, 1985chan
roblechan robles virtual law library10
percent
January
1, 1986 to December
31, 1986chan
robles virtual law librarychan 20
percent
January
1, 1987 to December
31, 1987chan
robles virtual law librarychan20
percent
The
increases authorized herein shall be cumulative and compounded.
Sec.
2. Definition of Terms.
—
(a) Rental
— shall mean the amount paid for the use or occupancy of a residential
unit whether payment is made on a monthly or other basis.
(b) A
Residential Unit — refers to an apartment, house and/or land on which
another's
dwelling is located used for residential purposes and shall include not
only buildings, parts or units thereof used solely as dwelling places,
except motels, motel rooms, hotels, hotel rooms, boarding houses,
dormitories,
rooms and bedspaces offered for rent by their owners, but also those
used
for home industries, retail stores or other business purposes if the
owner
thereof and his family actually live therein and use it principally for
dwelling purposes: Provided, That in the case of a retail store, home
industry
or business, the initial capitalization thereof shall not exceed five
thousand
pesos (P5,000.00): and Provided, further, That in the operation of the
store, home industry or business, the owner thereof shall not require
the
services of any person other than the members of his household. chanrobles virtual law library
(c) Immediate
Members of Family of the Lessee or Lessor — for purposes of
repossessing
the leased premises, shall be limited to his or her spouse, direct
descendants
or ascendants, by consanguinity or affinity.
(d) Lessee
— shall mean the person renting a residential unit. chanrobles virtual law library
(e) Owner/Lessor
— shall mean the person who leases or rents out a residential unit
leased
to him by an owner.
(f) Sublessor
— shall mean the person who leases or rents a residential unit leased
to
him by an owner.
(g) Sublessee
— shall mean the person who leases or rents a residential unit from a
sublessor. chanrobles virtual law library
(h) Assignment
of Lease — shall mean that act contemplated in Article 1649 of the
Civil
Code of the Philippines.
Sec.
3. Rental and Deposit.
— Rental shall be paid in advance within the first five days of every
current
month or the beginning of the lease agreement unless the contract of
lease
provides for a later date of payment. The lessor cannot demand any
advance
rental but he may ask for a deposit not to exceed one month
rental. chanrobles virtual law library
Sec.
4. Assignment of Lease
or Subleasing. — Assignment of lease or subleasing of the whole or any
portion of the residential unit, including the acceptance of boarders
or
bedspacers, without the written consent of the owner/lessor is
prohibited.
In case consent is given by the owner — lessor, the sublessor or
assignor
cannot charge rentals higher than the rental charged on the property by
the owner/lessor.
Sec.
5. Grounds for Judicial
Ejectment. — Ejectment shall be allowed on the following grounds:chanroblesvirtuallawlibrary
(a) Assignment
of lease or subleasing of residential units in whole or in part,
including
the acceptance of boarders or bedspacers, without the written consent
of
the owner/lessor.
(b) Arrears
in payment of rent for a total of three (3) months: Provided, That in
case
of refusal by the lessor to accept payment of the rental agreed upon,
the
lessee may either deposit, by way of consignation, the amount in court,
or with the city or municipal treasurer, as the case may be, or in a
bank
in the name of and with notice of the lessor, within one month after
the
refusal of the lessor to accept payment.
The
lessee shall thereafter deposit the rental within ten days of every
current
month. Failure to deposit rentals for three months shall constitute a
ground
for ejectment. If an ejectment case is already pending, the court upon
proper motion may order the lessee or any person or persons claiming
under
him to immediately vacate the leased premises without prejudice to the
continuation of the ejectment proceedings. At any time, the lessor may,
upon authority of the court, withdraw the rentals deposited. chanrobles virtual law library
The
lessor, upon authority of the court in case of consignation and upon
joint
affidavit by him and the lessee to be submitted to the city or
municipal
treasurer and to the bank where deposit was made, shall be allowed to
withdraw
the deposits.
(c) Legitimate
need of owner/lessor to repossess his property for his own use or for
the
use of any immediate member of his family as a residential unit, such
owner
or immediate member not being the owner of any other available
residential
unit within the same city or municipality: Provided, however, That the
lease for a definite period has expired: Provided, further, That the
lessor
has given the lessee formal notice three (3) months in advance of the
lessor's
intention to repossess the property: and Provided, finally, That the
owner/lessor
is prohibited from leasing the residential unit or allowing its use by
a third party for at least one year.
(d) Absolute
ownership by the lessee of another dwelling unit in the same city or
municipality
which he may lawfully use as his residence: Provided That the lessee
shall
have been formally notified by the lessor of the intended ejectment
three
months in advance.
(e) Need
of the lessor to make necessary repairs of the leased premises which is
the subject of an existing order of condemnation by appropriate
authorities
concerned in order to make the said premises safe and habitable:
Provided,
That after said repair, the lessee ejected shall have the first
preference
to lease the same premises: Provided, however, That the new rental
shall
be reasonably commensurate with the expenses incurred for the repair of
the said residential unit: and Provided, finally, That if the
residential
unit is condemned or completely demolished, the lease of the new
building
will no longer be subject to the provision of this Act.chanrobles virtual law library
(f) Expiration
of the period of the lease contract.
No
lessor or his successor-in-interest shall be entitled to eject the
lessee
upon the ground that the leased premises has been sold or mortgaged to
a third person regardless of whether the lease or mortgage is
registered
or not.
Sec.
6. Application of the Civil
Code and Rules of Court of the Philippines. — Except when the lease is
for a definite period, the provisions of paragraph (1) of Article 1673
of the Civil Code of the Philippines, insofar as they refer to
residential
units covered by this Act, shall be suspended during the effectivity of
this Act, but other provisions of the Civil Code and the Rules of Court
on lease contracts, insofar as they are not in conflict with the
provisions
of this Act shall apply.chanrobles virtual law library
Sec.
7. Coverage of this Act.
— All residential units the total monthly rental of which does not
exceed
four hundred eighty pesos (P480.00) as of the effectivity date of this
Act shall be covered notwithstanding that the monthly rental shall have
already exceeded the four hundred eighty-peso limit as a result of the
application of Section one hereof or by virtue of a contract or
agreement
of lease perfected before July 1, 1985: Provided, however, That this
Act
shall not be applicable to new residential units constructed or offered
for rent for the first time during its effectivity.
Sec.
8. Penalty Clause. — A
fine of not less than two thousand pesos nor more than five thousand
pesos
shall be imposed on any person, natural or juridical, violating Section
1 or Section 4 of this Act.
Sec.
9. Separability Clause.
— If for any reason, any section or provision of this Act is declared
unconstitutional
or invalid, the other sections or provisions hereof which are not
affected
thereby shall continue in full force and effect. chanrobles virtual law library
Sec.
10. Repealing Clause. —
Batas Pambansa Bilang 25 and all laws, decrees, orders or parts thereof
inconsistent with the provisions of this Act are hereby repealed or
modified
accordingly. chanrobles virtual law library
Sec.
11. Effectivity. — This
Act shall take effect immediately upon its approval and shall remain in
force up to December 31, 1987.
Approved:
June 12, 1985
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