Be it enacted by the Batasang Pambansa in session assembled:

SECTION 1. All commercial and industrial lands of the public domain (commonly known as NAFCO lands), which have been transferred from the Board of Liquidators to the Bureau of Buildings and Real Property Management, under the provisions of Executive Order No. 290, series of 1958, shall be sold without bidding by the Bureau of Buildings and Real Property Management to the actual occupants thereof who do not own residential, commercial or industrial land: Provided, however, That the occupation in every case shall in no case be less than 10 years, and lots which may still be unoccupied or, if occupied, are not sought to be bought by their actual occupants, or the occupation is less than ten years, shall be disposed of through public auction among qualified persons who do not own residential, commercial or industrial lands, except such portions thereof as the President of the Philippines may reserve for the use of the national or local government, or for the use of corporations or entities owned or controlled by the government: Provided, further, That unless otherwise provided herein, the disposition of lands under this Act shall be governed by Commonwealth Act No. 141, as amended.

SEC. 2. In the negotiated sale of the aforesaid lots, the consideration must not be less than the assessed value nor more than the prevailing price in the vicinity of said lots, to be determined by a committee of three to be composed of the city or provincial assessor, as chairman, and a representative of the Bureau of Buildings and Real Property Management and the district land officer, as members.

SEC. 3. Lands acquired under the provisions of this Act shall not be sold or otherwise alienated within a period of five years from such acquisition without the prior approval of the Director of General Services.

SEC. 4. The Director of the Bureau of Buildings and Real Property Management shall issue such rules and regulations as are necessary to implement the provisions of this Act, which shall take effect fifteen days after publication in a newspaper of general circulation.

SEC. 5. Sections two and three of Republic Act Numbered Four hundred seventy-seven, as amended by Presidential Decrees Numbered Nine hundred sixty-seven and Thirteen hundred and four, and all acts, executive orders, rules and regulations inconsistent herewith, are hereby repealed or modified accordingly.

SEC. 6. Any violation of this Act shall subject the offender to an imprisonment of not less than six months and one day to six years and one day and a fine of not less than four hundred pesos but not more than one thousand pesos.

SEC. 7. This Act shall take effect upon its approval.

Approved, September 12, 1982.