GENERAL GUIDELINES:

1. All GSIS acquired assets are offered through Lease with Option to Buy (LWOB). Acceptance of
Lease Offers shall start on 05 July 2021.

2. Interested lessee must be a Filipino citizen who is legally authorized to enter into an agreement
and must have a regular source of income that will support his/her rental obligations.

3. The lessee shall use the leased premises only for residential purposes. All forms of illegal
activities are prohibited within the leased premises including, but not limited to, illegal gambling,
use of prohibited drugs, using the premises as a drug den or sexden or venue for hazing, etc. Any
breach thereof shall be a ground to terminate the lease. The lessee shall keep and maintain the
leased premises in clean and sanitary condition.

4. The term of rent shall be one year, renewable every year at the sole option of GSIS, provided
that such renewal shall be in writing and is subject to an annual increase/escalation at a rate to
be determined by GSIS based on existing market condition. The lessee shall notify GSIS in
writing of his intent to renew at least three (3) months prior to expiration of lease
agreement. GSIS shall promptly notify the lessee of its decision either to renew or not renew the
lease agreement within one (1) month from receipt of lessee’s letter of intent.

5. Qualified lessees must submit and accomplish the following requirements:

1) LWOB Application Form, properly accomplished and signed by the applicant/s;
2) Photocopy of any two (2) of the following Identification Card (original to be presented):
i. Employee’s ID/Company ID
ii. Driver’s License
iii. Professional Regulation Commission (PRC) ID
iv. Senior Citizen’s ID
v. SSS ID
vi. COMELEC/Voters ID;
vii. Passport
viii. Any government-issued ID
3) Proof of Income;

6. The lessee may choose any of the following mode of payments:

a. Cash;
b. Manager’s or Cashier’s checks; or
c. Post-dated checks.

7. The minimum monthly rental fee shall be based on the comparative market figures and
capitalization rate.

8. Pursuant to Republic Act (RA) No. 10963 or Tax Reform for Acceleration and Inclusion (TRAIN)
Act, Lease of residential units with a monthly rental fee above PhP15,000.00 shall be subject
to twelve percent (12%) Value Added Tax (VAT).

9. Place of Payment

1. Cash payments, the rental fee may be paid at GSIS Central Office or any nearest GSIS
Branch Office where the property is located.

2. Post-dated checks shall be accepted at GSIS Central or Branch Office only.

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10. The rental fee shall be paid within the first five (5) days of the rent period covered. The schedule
of lease payment shall be based on the following:

 For lease agreements executed every 1st to 15th day of the month, lease payments
shall be from the 1st to 5th day of the following month; and

 For lease agreements executed every 16th to end of the month, lease payments shall
be from the 16th to 20th day of the following month.

Example:
 If the monthly rental period covered is 1/1/2021 – 01/31/2021, the due date shall
be from 02/01/2021 to 02/05/2021

 If the monthly rental period covered is 1/16/2021-2/15/2021, the due date shall
be from 2/16/2021 to 2/20/2021

Should the 5th day fall on a weekend or non-working day in the GSIS Branch Office where the
LWOB account is maintained, the monthly rental fee shall be paid on the next banking or working
day without penalty.

11. A Notice of Approval of Lease with Option to Buy (NALWOB) shall be issued to qualified lessees.
The lessee shall submit within fourteen (14) calendar days from the date of signing the
NALWOB the following documents:

a. Notarized Lease Agreement

b. All existing utility bills (Electricity, Water, Telephone/Internet/Cable, etc.)

12. Simultaneous to the execution of the lease agreement, the lessee is required to pay two (2)
months advance rental and two (2) months security deposit.

In case of renewal of lease agreement, the advance rent and security deposit shall be adjusted
to correspond to the adjusted rental fee as provided for in the Rent Escalation Rate. Payment
of the difference shall be made not later than the date of execution of the renewal of lease
agreement.

The two (2) months advance rental fee shall be applied as payment for the last two (2) months
of the term of the lease agreement if there is no renewal of the Lease Agreement.

The security deposit shall cover for any unpaid utility bills, damages to the leased premises
caused by the lessee after the term of lease and may not be applied as rental payments. If
the Security Deposit is insufficient to cover the foregoing expenses, RPAMD shall inform the
lessee in writing of such deficiency and shall be required to pay. In case the lessee fails to
settle the deficiency within six (6) months from the date of receipt of notice, the matter shall
be endorsed by READMO to the Legal Services Group (LSG) for appropriate legal action to
protect the interests of GSIS.

The remaining amount of the security deposit after deducting all the outstanding utility bills
shall be returned within three (3) months from receipt of a written request from lessee and
upon submission of proof of payment of all outstanding utility bills [e.g., electricity, water,
Common Usage Service Area (CUSA) and all other expenses] and other obligations due to
GSIS.

13. The lessee shall pay the Real Property Tax (RPT) of the leased premises as beneficial user.
The lessee is required to provide GSIS a photocopy of official receipt (OR) of payment of RPT for
the year. The lessee shall not withhold taxes, fees or other expenses from the monthly rent due
the GSIS.

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14. The lessee shall submit within the lease period, the following documents:

a. Certified True Copy of Latest Real Property Tax Declaration of Building/Improvement

b. Real Property Tax Clearance as of the current year as beneficial user

15. All expenses relative to the execution of this Lease Agreement, such as documentary stamps,
notarial fees, and such other expenses that may be incurred in connection therewith shall be
shouldered by the lessee.

16. Any unpaid/late/underpaid rental fees shall be charged with simple interest of three percent (3%)
penalty rate or PhP500.00 per month, whichever is higher. In case the lessee incurs two (2)
months unpaid rentals, the payment shall apply first to the first month of unpaid rental based on
the order of priority. Any excess amount paid shall apply to the remaining outstanding balance
with the same order of priority.

17. The lessee shall pay all utility bills (water, electricity, telephone, cable TV and internet
subscriptions) and association dues, if applicable, within the given due date. The lessee shall
submit to RPAMD a copy of proof of payment of monthly bills or dues (personally, through mail
or e-mail) within five (5) working days from date of payment.

18. There is default in case any of the following circumstances occur:

a. Lessee fails to pay three (3) or more monthly rental fee and/or utility bills;
b. Non-payment of annual Real Property Taxes (RPT) as beneficial user; and
c. Failure of the lessee to comply with any of the material provisions of the lease agreement.

19. The following shall be the consequences to the lessee in the event of default:

a. Cancellation or termination of the lease agreement;

b. Forfeiture of advance deposit and security deposit; and
c. Endorsement to LSG for appropriate action, if necessary.

20. In case of default, advance rental and security deposit shall be forfeited in favor of GSIS.

21. The lessee shall not directly or indirectly sublease any portion of the leased premises. The
lessee shall not assign its rights, interests and obligations to any other person or entity.

22. The lessee, at its own account and expense, shall answer and undertake repairs on the leased
premises due to ordinary wear and tear, without need to inform the lessor.

23. The lessee shall not make any material or unauthorized permanent improvements,
alterations or additions to the leased premises without obtaining a written consent from the
lessor. Authorized improvements, alterations or additions introduced to the leased premises shall
automatically become part of the leased property of the lessor, and cannot be removed by the
lessee from the leased premises after expiration of the lease agreement.

24. In case of damage to the leased premises or its appurtenance by fire, conflagration, flood,
earthquake, war or other fortuitous events, the lessee shall give due notice to the lessor within
three (3) days from its occurrence. The lessor in such case may terminate the lease agreement.
All unused portion of the advance rentals shall be returned to the lessee within three (3) months
from effectivity of the pre-termination. The security deposit shall be returned after deducting
payment of utility bills (e.g., electricity, water and all other expenses) and other obligations due
the lessor.

25. If the damage to the leased premise is caused by the lessee or any of the lessee’s employees,
family, domestic helpers, agents, and/or visitors, lease agreement shall be terminated and the
security deposit shall be used to cover such damages. Should the cost of repair, restoration, or
reconstruction exceed the total amount of the security, the lessee is obliged to pay for such
deficiency to cover all the cost of damages.
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26. At the expiration, pre-termination or cancellation of the lease agreement, the lessee shall
turn-over to GSIS the keys of the leased premises within ten (10) calendar days from its expiration,
pre-termination or cancellation. Thereafter, use or occupancy of the leased property shall not be
allowed.

If the lessee refuses to vacate the leased premises after the written demand of the lessor
to vacate, the matter shall be immediately referred to the LSG for appropriate legal action.

27. The GSIS shall have the prerogative to pre-terminate the lease agreement on the following
conditions:

a. If the pre-termination is due to the fault or negligence of the lessee, all advance rentals
shall be forfeited. Any amount in excess of the security deposit, after utility bills, applicable
association dues and other damages to the leased premises caused by the lessee have been
deducted, shall be returned to the lessee within three (3) months from receipt of written
request from lessee with attached proof of payment of monthly bills and other obligations to
GSIS.

b. If the pre-termination is at the instance of the GSIS without fault or negligence on the part of
the lessee, all unused portion of the advance rentals shall be returned to the lessee within
three (3) months from effectivity of the pre-termination. The security deposit shall be returned
after deducting payment of utility bills, if any. The GSIS shall hold the security deposit for a
period of three (3) months from effectivity of the pre-termination, and return the same to the
Lessee, less the amount paid for utility bills, if any.

28. OPTION TO BUY

a. The lessee has the Option to Buy (OTB) the leased premises at any time during the
effectivity of the lease agreement but not exceeding thirty (30) days before expiration
of the lease. During this period, and provided that the lessee has no outstanding unpaid
rental, he may send GSIS a written proposal to buy the leased premises in cash. In such a
case, the public bidding provision in the policy on disposition of Investment Properties - Retail
Units (IP-RUs) through public bidding shall not be applied.

Upon approval of the OTB, the lessee shall pay the purchase price in manner provided in
policy on disposition of IP-RUs, which is CMV of the property at the time of its approval or
any offered amount received for same property, whichever is higher, within thirty (30) days
from the receipt of the letter of approval. Failure to fully pay the purchase price within the
specified period shall cancel the OTB. In this case, the remaining lease term of the lease
agreement, if any, will still be in effect.

b. The lessee shall still be liable for all its obligations under the lease agreement, including
payment of rentals, during the 30-day period to exercise the OTB and the actual date of full-
payment. Lease Agreement shall be terminated upon full-payment.

c. This OTB is no longer available to the lessee once the lease has expired or is terminated
in accordance with the provisions thereof.

d. However, if the lessee is willing to purchase the property after the expiration of lease
agreement, the lessee may participate in its public bidding in accordance with the applicable
policy on disposition of retail units.

29. For leasing inquiries, you may call the Real Property Accounts Management Department
(RPAMD) at trunk line numbers (02) 8479-3600, and (02) 7976-4900 local numbers 3374, 3396
and 3425 or send an email at gsisrpamdcst@gsis.gov.ph.

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