497 Phil. 363
CORONA, J.:
Art. 1676. The purchaser of a piece of land which is under a lease that is not recorded in the Registry of Property may terminate the lease, save when there is a stipulation to the contrary in the contract of sale, or when the purchaser knows of the existence of the lease.The trial court dismissed the complaint. Respondent promptly appealed. The case was docketed as CA-G.R. CV No. 46200 and raffled to the Sixth Division.[12]
SECTION 6. Land Tenancy in Urban Land Reform Areas. Within the Urban Zones legitimate tenants who have resided on the land for ten years or more who have built their homes on the land and residents who have legally occupied the lands by contract, continuously for the last ten years shall not be dispossessed of the land and shall be allowed the right of first refusal to purchase the same within a reasonable time and at reasonable prices, under terms and conditions to be determined by the Urban Zone Expropriation and Land Management Committee created by Section 8 of this Decree.According to the Court of Appeals, the allegations made by the respondent in its complaint were sufficient to establish a cause of action in the context of PD 1517. The CA likewise denied petitioner's motion for reconsideration.[13]
WHEREAS, the basic law of the land explicitly provides for the regulation of the acquisition, ownership, use, enjoyment and disposition of private property and for the equitable diffusion of property ownership and profits which includes land and land resources.Section 2, on the other hand, provides:[17]
SECTION 2. Declaration of Policy. It is hereby declared to be the policy of the State a) to liberate our human communities from blight, congestion, and hazard, and to promote their development and modernization; b) to bring about the optimum use of land as a national resource for public welfare rather than as a commodity of trade subject to price speculation and indiscriminate use; c) to provide equitable access and opportunity to the use and enjoyment of the fruits of the land; d) to acquire such lands as are necessary to prevent speculative buying of land for public welfare; and e) to maintain and support a vigorous private enterprise system responsive to community requirements in the use and development of urban lands. (underscoring supplied)Respondent relies on subsection (e) to support its argument.
WHEREAS, it is a declared objective of the New Society to effect social, economic and political reforms attuned to the establishment of a secure national community and to an improved quality of life for all citizens and for all others who may sojourn our shores;From the foregoing, it should be evident that the intended beneficiaries of the Urban Land Reform Act are the members of the urban poor. The repeated mention of this socio-economic class, as well as the word "human," points to a specific intent on the part of the law to grant relief to economically disadvantaged people, particularly families unable to acquire the lots they occupy due to the decision of the landowners to sell them to speculators. Further perusal of this decree shows that, under Section 7, in the event that such residents are unable to buy the lands they occupy, the government shall acquire the lots for them via expropriation:
WHEREAS, the quality of human life in our times is inescapably determined by the relationship among population, resources, the environment, and intelligent policies;
WHEREAS, human settlements is an integrative concept embracing the interdependence of man's environment, human shelters and structures, and the design and organization of human communities consistent with a national framework plan, all for people's security and well-being.
WHEREAS, land is the ultimate platform of all man's activities, and the crucial factor in determining the shape of human settlements;xxx xxx xxx
WHEREAS, the traditional concept of landownership has aggravated the problem arising from urbanization such as the proliferation of blighted areas and the worsening of the plight of urban poor and has spawned valid and legitimate grievances in urban centers giving rise to social tension and violent conflicts;
WHEREAS, a social reform objective of the New Society is to renew blighted areas, improve the conditions of the urban poor and resolve and redress legitimate grievances arising therefrom, while at the same time providing incentives to progressive landowners and developers who wish to develop their lands in accordance with government plans and programs responsive to community welfare; (underscoring supplied)
SECTION 7. Acquisition of Residential Lands for Existing Tenants and Residents. In cases where the tenants and residents, referred to in Section 6 of this Decree, are unable to purchase said lands, the Government shall acquire the land and/or improvements thereon by expropriation or other land acquisition technique provided for under Section 11 of this Decree. xxxRespondent, by contrast, was neither an individual nor a member of the urban poor, judging from the fact that it was more than willing to match the P1,800,000 price paid by Solim and Tan in acquiring the contested parcel of land. Its insistence that it was a "resident" within the contemplation of PD 1517, being nothing more than a ludicrous attempt to
P.D. No. 1517, in referring to the preemptive or redemptive right of a lessee speaks only of urban land under lease on which a tenant has built his home and in which he has resided for ten years or more. . .Not only did we reiterate this doctrine in the case of House International Building Tenants Association, Inc., v. Intermediate Appellate Court,[19] we also ruled out the possibility that the law could apply to juridical persons such as the respondent:
The petitioners likewise invoke our ruling in Mataas na Lupa Tenants Association, Inc., et al. vs. Dimayuga, et al. (G.R. No. L-32049, June 25, 1984, 130 SCRA 30) where we upheld the petitioners (sic) right of first refusal over land they had leased and occupied for more than ten (10) years and on which they had constructed their houses, a right given them under P.D. No. 1517 (and Proclamation No. 1967 of May 14, 1980). For two reasons this case gives the petitioners' case no support. In Mataas na Lupa the members of the ASSOCIATION were also plaintiffs in their individual capacity. This is not so in the present case. . .Under no possible interpretation of PD 1517 could respondent's taxi garage be considered a "house" or a "home." Such an interpretation runs contrary to the spirit of the said decree. Respondent therefore cannot claim a pre-emptive right to purchase the property.