(NAR) VOL. 9 NO. 3 / JULY - SEPTEMBER 1998
4.1.1 Act No. 1654 — Lease contracts covered by Act No. 1654 of 1907 shall be governed by the provisions of said act and contract, thus:their lease contract to vacate their occupied area upon its expiration and pay rental arrearages, if any.
> Appraisal/reappraisal shall be done every ten (10) years
> Rent rate shall be 3% of the appraised value of the land
The law does not put a limit to the appraised/reappraised value of the land. As such, appraisal/reappraisal may be increased by more than 100% of the previous appraisal/reappraisal; but the rent shall be limited to 3% of the appraised/reappraised value of the land.
4.1.2 Commonwealth Act No. 141, as amended — Lease contracts covered under CA No. 141 as amended, shall be governed by the provisions of said act and contract, thus:
> Appraisal/reappraisal shall be done every ten (10) years and shall not be more than 100% of the previous appraisal/reappraisal.
> Rent rate shall not be less than 3% of the appraised/reappraised value of the original land and not less than 4% of the appraised/reappraised value of the reclaimed land.
The law puts a limit to the appraised/reappraised value of the land at 100% of its previous value but it does not prevent an increase in the rent rate beyond 3% of the appraised/reappraised value of the original land and beyond 4% of the appraised/reappraised value of the reclaimed land. As such, rent rates may be increased by more than 3% of the appraised/reappraised value of the original land and by more than 4% of the appraised/reappraised value of the reclaimed land.
4.1.3 Republic Act No. 2694 — Lease contracts covered by RA 2694 shall be governed by the provisions of said act and contract, thus:
> Appraisal/reappraisal shall be done every ten (10) years and shall not be more than 100% of the previous appraisal.
> The annual rental rate shall not be less than 4% of the appraised value of the reclaimed land and 2% of the value of its improvements and not less than 3% and 1% of the appraised value for original land and its improvements, respectively.
The law puts a limit to the appraised/reappraised value of the land at 100% of its previous value, but does not prevent an increase in rent rate beyond 4% of the appraised value of the reclaimed land and 2% of the value of its improvements and not less than 3% and 1% of the appraised value for original land and its improvements, respectively.
4.1.4 A periodic appraisal shall be conducted by PPA. However, if the lease contract is covered by CA 141 or RA 2694 and the results of the appraisal goes beyond 10% of the previous appraisal/reappraisal value of the land, such appraisal for purposes of determining the rental amount shall be limited to not more than 100% of the previous reappraised value.
4.1.5 Lessees shall be notified by the PMO at least fifteen (15) days before expiration of
4.2.1 The rental rate for areas with expired leases shall be determined pursuant to the REM guidelines, provided that effective July 7, 1995, the rental rate shall not be less than P 72.50/sq. m./month as approved by the PPA Board.4.3 Government Share on Rentals — The PMO shall collect percentage share of rentals derived from sub-leasing if the contract so stipulates.
4.2.2 The LSD, in coordination with OGCC, shall file court cases against occupants with expired contracts and/or which failed to pay their rentals. The PMO/PDO shall submit to the LSD the pertinent documents for filing of cases.