AMENDING PRESIDENTIAL DECREE NO. 1190 BY CANCELLING THE TITLES OF LOT PURCHASERS AT THE MALAYA-EAST AVENUE SUBDIVISION, QUEZON CITY, AND TO RECONVEY THE SAME TO THE NATIONAL HOU…

WHEREAS, it is a declared policy of the State to help
provide homes or homelots for its less fortunate citizens;

WHEREAS, in pursuance of this policy, as well as the
constitutional principle of social justice, the State, under its inherent police
powers, has established appropriate government agencies with the objective of
providing and maintaining adequate and decent housing for the greatest possible
number of people, more especially those who may be unable otherwise to provide
themselves therewith;

WHEREAS, one of the government agencies established by the
State was the People’s Homesite and Housing Corporation (PHHC), now abolished
and succeeded by the National Housing Authority (NHA);

WHEREAS, the PHHC had acquired large parcels of land in
various parts of the country, mostly in Metro Manila, developed and subdivided
then into small homelots and thereafter sold such lots under easy installment
terms to qualified and deserving individual applicants;

WHEREAS, in order to prevent commercial profiteering and
speculation over the lots thus sold and achieve its objective of increasing the
housing stock and minimize the housing shortage in the country, more
particularly in the locality where the lots are located, by the immediate
utilization of the lots for housing purposes, the PHHC had invariably made it a
condition in the sale of each and every lot that within a certain period,
usually one year from the execution of the deed of sale, or the issuance of the
title to the lot, the buyer should construct a house thereon, otherwise the deed
of sale would be cancelled and ownership of the lot would be reverted to the
PHHC as seller thereof, the said condition being annotated on the title as a
lien thereon;

WHEREAS, the PHHC had sold to various individuals’ several
home lots in its Malaya-East Avenue Subdivision in Quezon City under, among
others, the aforestated conditions that the buyer should construct a house on
the lot within one year from the execution of the corresponding title to the
lot, otherwise, the sale would be cancelled and the owner of the lot would
revert to the PHHC as seller thereof;

WHEREAS, several years had already elapsed since the
execution of the sale or issuance of the corresponding titles to the lots, but
certain buyers, in flagrant violation of the aforestated condition, had not yet
constructed houses on their respective lots;

WHEREAS, in its desire to solve the acute housing problem in
Metro Manila, the NHA, as the successor interest of the PHHC and as the new
principal government agency that oversees and implements the State’s housing
program, has resolved to utilize to the maximum the lots that its
predecessor-in-interest had thus sold, and for this purpose, decided to enforce
strictly the condition that the buyers of these lots should construct houses
thereon within the period given;

WHEREAS, pursuant to its resolution, and considering the
expiration of the period given under the aforestated condition, the NHA had
served written notices by registered mail to all the buyers concerned and by
adequate publication in newspapers of general circulation, requiring them to
comply with the aforesaid condition or offer satisfactory explanations for their
failure to comply with the same, otherwise, the corresponding deeds of sale
would be accordingly cancelled and the ownership of the lots reverted to the
NHA, as successor-in-interest of the PHHC;

WHEREAS, Presidential Decree No. 1190 was subsequently
promulgated cancelling the transfer certificates of titles of awardees or
purchasers of certain lots and reverting the ownership thereof to the NHA for
the failure of the said awardees or purchasers to comply with their obligation
of constructing a house on their respective lots within the period given;

WHEREAS, after a thorough study and review of the individual
cases of the affected awardees or purchasers, it appears that some of them had
failed to comply with the aforementioned condition of constructing their houses
on their lots within the period given due to valid and lawful causes, such as
the lack of proper notice to them although they were ready, willing and able to
comply with their obligation of constructing their houses on their lots, or the
pendency of a litigation directly involving the lot or its occupancy by
squatters who refused to vacate it, or some other legally plausible reasons;

WHEREAS, the deprivation of the property of those persons
whose failure to comply with their obligations was not due to their own willful
act or omission will be unfair and unjust and will not serve the ends of the
Government and the New Society;

WHEREAS, it has been confirmed that in spite of due notice
to them or to their successors-in-interest, the other awardees or purchasers
affected by the said Decree had nonetheless obstinately failed or refused to
comply with their aforesaid obligations of constructing their houses on their
respective lots without just or valid reasons therefor, that they had thereby
rendered a naught the purposes of the government in this regard and defecting
the very essence of the award or sale of the lots to them; and

WHEREAS, it has become necessary to cancel the transfer
certificates of titles issued to the buyers who had, after due notice, failed or
refused to comply with the condition of the sale without just or valid reasons
as aforestated, and to revert and reconvey the lots covered by the said titles
to the NHA so that the said lots may be properly utilized in consonance with the
social objectives of the State after payment to the buyer or registered owner
compensation not to exceed the market value declared by him or his
representative, or such market value as determined by the assessor;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
amend Presidential Decree No.1190 dated September 1, 1977, to read as
follows:

SECTION 1. The transfer certificates of title issued by the
Register of Deeds of Quezon City in favor of the awardees or purchasers or their
successors-in-interest which are enumerated and specified hereunder or such
other transfer certificates of title derived therefrom are hereby cancelled and
revoked and the ownership of the lots covered by the said transfer certificates
of titles reverted and reconveyed to the National Housing Authority which shall
pay, out of its own funds, the buyers or registered owners of the said lots
compensation equal to the market value declared by the buyer or registered owner
or his lawful representative, or such market value as determined by the assessor
of Quezon City, whichever is lower, the said transfer certificates of title
indicated by their numbers, the rates of their issuance and the lots and blocks
they cover being as follows, to wit:

TCT NO.	DATE ISSUED		LOT NO.	BLOCK NO.
100260	12/14/65		12	10
133563	9/12/68		12	103
105962	6/21/66		88	11
113531	1/16/67		19	116
147890	11/25/69		13	6

SEC. 2. The transfer certificates of title of any lot sold
by the NHA, or its predecessor-in-interest, under the condition that the buyer
shall construct a dwelling house thereon within one year from the execution of
the corresponding deed of sale or issuance of the corresponding title thereto,
shall similarly be cancelled and revoked without the necessity of court
declaration and the ownership thereof reverted to the NHA, if the said condition
is violated, provided that the buyer or registered owner of the said lot is
given adequate opportunity to comply with the condition or otherwise present
proof of just or lawful causes why he was unable to comply therewith, which
opportunity shall not be less than ninety days from notice either in writing or
by publication in a newspaper of general circulation of such violation;
Provided, further, That the buyer or registered owner of the lot is
paid compensation therefor in accordance with the next preceding section
hereof.

SEC. 3. The NHA may take immediate possession of any lot the
ownership of which is thus reverted to it but it may not demand the issuance of
the corresponding transfer certificate of title unless it can show proof to the
register of deeds concerned that full payment of the lot has been made in
accordance herewith, whether the payment be made directly or by depositing it
with the Philippine National Bank or any of its branches in the city or
municipality where the lot is located, in which case the register of deeds shall
immediately issue the corresponding certificate of title in the name of the
NHA.

SEC. 4. The NHA authorized to use or dispose of any lot
reacquired by it by virtue of the provisions hereof and under Presidential
Decree No. 1190 in any manner it may deem fit, provided that such use or
disposition is in accordance with the purposes as embodied in its charter,
Presidential Decree No. 757.

SEC. 5. This Decree shall take effect immediately.

Done in the City of Manila, this 11th day of June, in the year of Our Lord,
nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant