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ACT NO. 3135 - AN ACT TO REGULATE THE SALE property subsequent to the mortgage or deed of
OF PROPERTY UNDER SPECIAL POWERS trust under which the property is sold, may
INSERTED IN OR ANNEXED TO REAL-ESTATE redeem the same at any time within the term of
MORTGAGES one year from and after the date of the sale; and
such redemption shall be governed by the
Section 1. When a sale is made under a special provisions of sections four hundred and sixty-four
power inserted in or attached to any real-estate to four hundred and sixty-six, inclusive, of the
mortgage hereafter made as security for the Code of Civil Procedure, in so far as these are not
payment of money or the fulfillment of any other inconsistent with the provisions of this Act.
obligation, the provisions of the following election
shall govern as to the manner in which the sale Sec. 7. In any sale made under the provisions of
and redemption shall be effected, whether or not this Act, the purchaser may petition the Court of
provision for the same is made in the power. First Instance of the province or place where the
property or any part thereof is situated, to give
Sec. 2. Said sale cannot be made legally outside of him possession thereof during the redemption
the province in which the property sold is period, furnishing bond in an amount equivalent
situated; and in case the place within said to the use of the property for a period of twelve
province in which the sale is to be made is subject months, to indemnify the debtor in case it be
to stipulation, such sale shall be made in said place shown that the sale was made without violating
or in the municipal building of the municipality in the mortgage or without complying with the
which the property or part thereof is situated. requirements of this Act. Such petition shall be
made under oath and filed in form of an ex parte
Sec. 3. Notice shall be given by posting notices of motion in the registration or cadastral
the sale for not less than twenty days in at least proceedings if the property is registered, or in
three public places of the municipality or city special proceedings in the case of property
where the property is situated, and if such registered under the Mortgage Law or under
property is worth more than four hundred pesos, section one hundred and ninety-four of the
such notice shall also be published once a week Administrative Code, or of any other real property
for at least three consecutive weeks in a encumbered with a mortgage duly registered in
newspaper of general circulation in the the office of any register of deeds in accordance
municipality or city. with any existing law, and in each case the clerk of
the court shall, upon the filing of such petition,
Sec. 4. The sale shall be made at public auction, collect the fees specified in paragraph eleven of
between the hours or nine in the morning and section one hundred and fourteen of Act
four in the afternoon; and shall be under the Numbered Four hundred and ninety-six, as
direction of the sheriff of the province, the justice amended by Act Numbered Twenty-eight hundred
or auxiliary justice of the peace of the municipality and sixty-six, and the court shall, upon approval of
in which such sale has to be made, or a notary the bond, order that a writ of possession issue,
public of said municipality, who shall be entitled addressed to the sheriff of the province in which
to collect a fee of five pesos each day of actual the property is situated, who shall execute said
work performed, in addition to his expenses. order immediately.

Sec. 5. At any sale, the creditor, trustee, or other Sec. 8. The debtor may, in the proceedings in
persons authorized to act for the creditor, may which possession was requested, but not later
participate in the bidding and purchase under the than thirty days after the purchaser was given
same conditions as any other bidder, unless the possession, petition that the sale be set aside and
contrary has been expressly provided in the the writ of possession cancelled, specifying the
mortgage or trust deed under which the sale is damages suffered by him, because the mortgage
made. was not violated or the sale was not made in
accordance with the provisions hereof, and the
Sec. 6. In all cases in which an extrajudicial sale is court shall take cognizance of this petition in
made under the special power hereinbefore accordance with the summary procedure
referred to, the debtor, his successors in interest provided for in section one hundred and twelve of
or any judicial creditor or judgment creditor of Act Numbered Four hundred and ninety-six; and if
said debtor, or any person having a lien on the it finds the complaint of the debtor justified, it

VIII – Special Laws

shall dispose in his favor of all or part of the bond of the assessed value of the property leased: And
furnished by the person who obtained possession. provided, finally, That in fixing the price of each
Either of the parties may appeal from the order of lot, which shall not exceed twenty pesos per
the judge in accordance with section fourteen of square meter, the cost of subdivision and survey
Act Numbered Four hundred and ninety-six; but shall not be included.
the order of possession shall continue in effect Section 2. Upon approval of this Act, no ejectment
during the pendency of the appeal. proceedings against any tenant or bona fide
occupant of the above lots shall be instituted and
Sec. 9. When the property is redeemed after the any ejectment proceedings pending in court
purchaser has been given possession, the against any such tenant or bona fide occupant
redeemer shall be entitled to deduct from the shall be dismissed upon motion of the defendant:
price of redemption any rentals that said Provided, That any demolition order directed
purchaser may have collected in case the property against any tenant or bona fide occupant thereof
or any part thereof was rented; if the purchaser shall be lifted.
occupied the property as his own dwelling, it Section 3. Upon approval of this Act, if the tenant
being town property, or used it gainfully, it being or bona fide occupant is in arrears in the payment
rural property, the redeemer may deduct from the of any rentals, the amount legally due shall be
price the interest of one per centum per month liquidated and shall be payable in twenty-four
provided for in section four hundred and sixty-five equal monthly installments from the date of
of the Code of Civil Procedure. liquidation.
Section 4. No property acquired by virtue of this
Sec. 10. This Act shall take effect on its approval. Act shall be transferred, sold, mortgaged, or
otherwise disposed of within a period of five years
from the date full ownership thereof has been
REPUBLIC ACT No. 4118 vested in the purchaser without the consent of the
AN ACT CONVERTING CERTAIN PARCELS OF Land Tenure Administration.
LAND IN THE CITY OF MANILA, WHICH IS Section 5. In the event of the death of the
RESERVED AS COMMUNAL PROPERTY, INTO purchaser prior to the complete payment of the
DISPOSABLE OR ALIENABLE LAND OF THE price of the lot purchased by him, his widow and
STATE AND PROVIDING FOR ITS SUBDIVISION children shall succeed in all his rights and
AND SALE. obligations with respect to his lot.
Section 1. Lot 1-B-2B of Block 557 of the cadastral Section 6. The Chairman of the Land Tenure
survey of the City of Manila, situated in the District Administration, shall implement and issue such
of Malate, City of Manila, which is reserved as rules and regulations as may be necessary to carry
communal property, is hereby converted into out the provisions of this Act.
disposable or alienable land of the State, to be Section 7. The sum of one hundred fifty thousand
placed under the disposal of the Land Tenure pesos is appropriated out of any funds in the
Administration. The Land Tenure Administration National Treasury not otherwise appropriated, to
shall subdivide the property into small lots, none carry out the purposes of this Act.
of which shall exceed one hundred and twenty Section 8. All laws or parts of laws inconsistent
square meters in area and sell the same on with this Act are repealed or modified accordingly.
installment basis to the tenants or bona fide Section 9. This Act shall take effect upon its
occupants thereof and to individuals, in the order approval.
mentioned: Provided, That no down payment shall Approved: June 20, 1964
be required of tenants or bona fide occupants who
cannot afford to pay such down payment:
Provided, further, That no person can purchase
more than one lot: Provided, furthermore, That if
the tenant or bona fide occupant of any given lot is
not able to purchase the same, he shall be given a
lease from month to month until such time that he
is able to purchase the lot: Provided, still further,
That in the event of lease, the rentals which may
be charged shall exceed eight per cent per annum

VIII – Special Laws