RIGHTS OF LESSEE:

1. Art. 1650. When in the contract of lease of things there

is no express prohibition, the lessee may sublet the
thing leased, in whole or in part, without prejudice to
his responsibility for the performance of the contract
toward the lessor.
2. Right of the lessee to demand from the lessor:

(1) To deliver the thing which is the object of the

contract in such a condition as to render it fit for the use
intended;
(2) To make on the same during the lease all the
necessary repairs in order to keep it suitable for the use
to which it has been devoted, unless there is a
stipulation to the contrary;
(3) To maintain the lessee in the peaceful and adequate
enjoyment of the lease for the entire duration of the
contract. (Art. 1654)
3. Art. 1655. If the thing leased is totally destroyed by a
fortuitous event, the lease is extinguished. If the
destruction is partial, the lessee may choose between
a proportional reduction of the rent and a rescission
of the lease.
4. Art. 1658. The lessee may suspend the payment of the
rent in case the lessor fails to make the necessary
repairs or to maintain the lessee in peaceful and
adequate enjoyment of the property leased.
5. Art. 1663. Xxx If the lessor fails to make urgent repairs,
the lessee, in order to avoid an imminent danger, may
order the repairs at the lessor's cost.
6. The right of the lessee not to be responsible for
deterioration or loss of the thing leased without his
 fault or when destruction is due to earthquake, flood,
storm or other natural calamity (Art. 1667)
7. Unless stipulated otherwise, a lessee may assign his
right to lease to another person (Cacao v. Court of
Appeals, GR No. L-46205, Dec. 29, 1977).
8. As the contract of lease can be extended, according to
its terms, only by written consent of the parties, no
right for extension can arise without such written
consent (Teodoro v. Mirasol, GR No. L-8934, May 18,
1956)
9. Where a lessee is given the right to construct
improvement, he cannot be said to be a builder in bad
faith (Lao Chit v. Security Bank and Trust Co., GR No.
L-110028, April 17, 1959)
10. Payment by the lessee of real property tax is
corroborating to evidence his right to lease (Cruz v.
Court of Appeals, GR No. L-4327, August 30 1982).
11. The law disallows the ejectment of the lessee
merely on the ground that the leased premises had
been sold or mortgaged (Caudal v. Court of Appeals,
GR No. 83414 July 31, 1989; Crisostomo v. Court of
Appeals, GR No. L-4327, Aug. 30, 1982).
12. As long as the legal possessor of the land
constitutes a person as a tenant-farmer by virtue of an
express or implied lease, such an act is binding on the
owner of the property even if he himself may not have
given his consent to such an arrangement (Anderson
Co. v. IAC, GR No. L-65928, June 21 1988).
13. A clause found in an agreement relative to the
renewal of the lease agreement at the option of the
lessee gives the latter an enforceable right to renew the
contract and to continue to occupy the leased property
after notifying the lessor to that effect (Dioquino v. IAC,
GR Nos. L-68580-81, Nov. 7, 1989).
14. The right of a lessee to occupy the land leased as
against the demand of the lessor should be decided
under Rule 70 of the Rules of Court (Rosales v. CFI
Lanao del Norte, GR No. L-62577, Sept. 21 1987).
15. While as a general rule the owner owns the
natural, industrial and civil fruits, in the case of a
contract of lease, the lessee gets the fruits from the
property directly, although the owner receives civil
fruits in the form of rents paid by the lessee (Sps. Garcia
v. Victorias Milling, GR No. L-21733, June 27 1978).
16. Preferential right to purchase the disputed lots
(Tongco v. Court of Appeals, GR No. L-23176, July 20,
1967).
17. When a lease contract contains a right of first
refusal, the lessor has the legal duty to the lessee not to
sell the leased property to anyone at a price until after
the lessor has made an offer to sell the property to the
lessee and lessee has failed to accept it (PUP v. Golden
Horizon Realty, GR No. 183612, March 15, 2010).
18. Improvements on leased premises made by the
lesse.
Art. 1678. If the lessee makes, in good faith, useful
improvements which are suitable to the use for which the
lease is intended, without altering the form or substance of
the property leased, the lessor upon the termination of the
lease shall pay the lessee one-half of the value of the
improvements at that time. Should the lessor refuse to
reimburse said amount, the lessee may remove the
improvements, even though the principal thing may suffer
damage thereby. He shall not, however, cause any more
impairment upon the property leased than is necessary.

With regard to ornamental expenses, the lessee shall not be

entitled to any reimbursement, but he may remove the
 ornamental objects, provided no damage is caused to the
principal thing, and the lessor does not choose to retain them
by paying their value at the time the lease is extinguished. (n)
19. Lessees may remove improvements provided they
do not injure the property (Lopez v. Philippine &
Eastern Trading, GR No. L-8010, Jan. 31, 1956).
20. Art. 1678 of the Civil Code has been applied such
that the lessor-plaintiff would pay ½ of the value of the
building erected on his land or if he refuses to make
such payment, that the lessee-defendant be allowed to
remove the improvements that he had erected at his
own expense (Sto. Domingo v. Chua Man, GR No. L-
9998, Feb. 28, 19589).
21. In case the ownership of a leased real property is
under litigation between two claimants and the lessee
thereof has reasonable grounds to doubt as to whom he
should make payments of the rents, the filing of the
complaint of interpleader is proper (Oriental Sawmill v.
Tambunting, GR. No. l-2097, Oct. 16, 1950).

RESCISSION OF CONTRACT OF LEASE

Art. 1659. If the lessor or the lessee should not comply with
the obligations set forth in Articles 1654 and 1657, the
aggrieved party may ask for the rescission of the contract
and indemnification for damages, or only the latter, allowing
the contract to remain in force.
Art. 1654. The lessor is obliged:

(1) To deliver the thing which is the object of the contract in such a
condition as to render it fit for the use intended;

(2) To make on the same during the lease all the necessary repairs
in order to keep it suitable for the use to which it has been devoted,
unless there is a stipulation to the contrary;
 (3) To maintain the lessee in the peaceful and adequate enjoyment
of the lease for the entire duration of the contract.

xxx xxx xxx

Art. 1657. The lessee is obliged:

(1) To pay the price of the lease according to the terms stipulated;

(2) To use the thing leased as a diligent father of a family,

devoting it to the use stipulated; and in the absence of stipulation,
to that which may be inferred from the nature of the thing leased,
according to the custom of the place;

(3) To pay expenses for the deed of lease.

Hence, failure to comply with their respective obligations may warrant

the rescission of the contract of lease with corresponding damages.

REASONABLE PERIOD TO VACATE

Under the present Rule, unless otherwise stipulated, such action by the
lessor shall be commenced only after (1) demand to pay or comple with the
conditions of the lease and vacate is made upon the lessee, or (2) Serving a
written notice of such demand upon the person found on the premises, or (3) by
posting such notice on the premises if no person is found thereon, and the lessee
fails to comply therewith after 15 days in case of land or 5 days in case of
building1. Section 2, Rule 70 of the Rules on Special Civil Action provides:

“Sec. 2. Lessor to proceed against lessee only after demand.

Unless otherwise stipulated, such action by the lessor shall be commenced only
after demand to pay or comply with the conditions of the lease and to vacate is
made upon the lessee, or by serving written notice of such demand upon the
person found on the premises, or by posting such notice on the premises if no
person be found thereon, and the lessee fails to comply therewith after fifteen
(15) days in the case of land or five (5) days in the case of buildings”

1 Remedial Law In Six Volumes: Herrera, Oscar M., 1999

Republic Act No. 9653 - AN ACT ESTABLISHING REFORMS IN THE
REGULATION OF RENT OF CERTAIN RESIDENTIAL UNITS,
PROVIDING THE MECHANISMS THEREFOR AND FOR OTHER
PURPOSES

Section 7. Rent and Requirement of Bank Deposit. - Rent shall be paid in

advance within the first five (5) days of every current month or the beginning
of the lease agreement unless the contract of lease provides for a later date of
payment. The lessor cannot demand more than one (1) month advance rent.
Neither can he/she demand more than two (2) months deposit which shall be
kept in a bank under the lessor's account name during the entire duration of
the lease agreement. Any and all interest that shall accrue therein shall be
returned to the lessee at the expiration of the lease contract.

In the event however, that the lessee fails to settle rent, electric, telephone,
water or such other utility bills or destroys any house components and
accessories, the deposits and interests therein shall be forfeited in favor of
the latter in the amount commensurate to the pecuniary damage done by the
former.

Section 9. Grounds for Judicial Ejectment. - Ejectment shall be allowed on the

following grounds:

1. Assignment of lease or subleasing of residential units in whole or in

part, including the acceptance of boarders or bedspaces, without the
written consent of the owner/lessor;

2. Arrears in payment of rent for a total of three (3) months: Provided,

That in the case of refusal by the lessor to accept payment of the rent
agreed upon, the lessee may either deposit, by way of consignation, the
amount in court, or with the city or municipal treasurer, as the case may
be, or barangay chairman, or in a bank in the name of and with notice
to the lessor, within one (1) month after the refusal of the lessor to
accept payment.

3. The lessee shall thereafter deposit the rent within ten (10) days of every
current month. Failure to deposit the rent for three (3) months shall
constitute a ground for ejectment.

4. The lessor, upon authority of the court in case of consignation or upon

joint affidavit by him and the lessee to be submitted to the city or
municipal treasurer or barangay chairman and to the bank where
deposit was made, shall be allowed to withdraw the deposits;

5. Legitimate need of the owner/lessor to repossess his or her property

for his or her own use of for the use of an immediate member of his
or her family as a residential unit: Provided, however, That the lease
 for a definite period has expired: Provided, further, That the lessor
has given the lessee the formal notice three (3) months in advance of
the lessor's intention to repossess the property and: Provided, finally,
That the owner/lessor is prohibited from leasing the residential unit
or allowing its use by a third party for a period of at least one (1) year
from the time of repossession;

6. Need of the lessor to make necessary repairs of the leased premises

which is the subject of an existing order of condemnation by
appropriate authorities concerned in order to make the said premises
safe and habitable: Provided, That after said repair, the lessee ejected
shall have the first preference to lease the same premises: Provided,
further, That the new rent shall be reasonably commensurate with the
expenses incurred for the repair of the said residential unit and:
Provided, finally, That if the residential unit is condemned or
completely demolished, the lease of the new building will no longer be
subject to the aforementioned first preference rule in this subsection;
and

7. Expiration of the period of the lease contract.

Section 10. Prohibition Against Ejectment by Reason of Sale or Mortgage. - No

lessor or his successor-in-interest shall be entitled to eject the lessee upon the
ground that the leased premises have been sold or mortgaged to a third
person regardless of whether the lease or mortgage is registered or not.

Garcia v. Court of Appeals2

Where the reason for ejectment is because the lessor needs it for his own
use, the lease period must not only have expired. There should be a three-
month notice to vacate as well.

2 G.R. No. 88632, [March 22, 1993]