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Republic Act

AN ACT PROVIDING FOR THE STABILIZATION AND REGULATION OF, RENTALS OF CERTAIN RESIDENTIAL UNITS FOR OTHER PURPOSES

Number
Batas Pambansa Blg. 877
Date of approval
Sections
11
Section 1Monthly Rentals and Maximum Increases.

SECTION 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:

PERIOD

MAXIMUM INCREASE

July 1, 1985 to December 31, 1985

10 percent

January 1, 1986 to December 31, 1986

20 percent

January 1, 1987 to December 31, 1987

20 percent

The increases authorized herein shall be cumulative and compounded.

Section 2Definition of Terms.

SECTION 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.

(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.

(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.

(h) Assignment of Lease - shall mean that act contemplated in

Article 1649 of the Civil Code of the Philippines.

Section 3Rental and Deposit.

SECTION 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.

Section 4Assignment of Lease or Subleasing.

SECTION 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.

Section 5Grounds for Judicial Ejectment.

SECTION 5. Grounds for Judicial Ejectment. - Ejectment shall

be allowed on the following grounds:

(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.

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.

(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.

Section 6Application of the Civil Code and Rules of Court of the Philippines.

SECTION 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.

Section 7Coverage of this Act.

SECTION 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.

Section 8Penalty Clause.

SECTION 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.

Section 9Separability Clause.

SECTION 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.

Section 10Repealing Clause.

SECTION 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.

Section 11Effectivity.

SECTION 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

11 sections

Cite this law

AN ACT PROVIDING FOR THE STABILIZATION AND REGULATION OF, RENTALS OF CERTAIN RESIDENTIAL UNITS FOR OTHER PURPOSES (Official Gazette). Retrieved via LawPlayer, https://lawplayer.com/ph/act/bp-877

Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).

No copyright in works of the Government (RA 8293 s.176)

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