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    The Maceda Law

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    vicenteferrer
    The document provides the full text of the Maceda Law (Republic Act No. 6552), which aims to protect buyers of real estate purchased through installment payments. Some key protections include allowing buyers a grace period to pay unpaid installments if they default, and requiring sellers to refund 50-90% of total payments made if the contract is cancelled after 2 years of installments. The law also gives buyers rights to sell their contract to another party or pay the full balance at any time without penalty. Any contract provisions that contradict the protections in the Maceda Law are considered null and void.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    The Maceda Law

    Uploaded by

    vicenteferrer
    149 views2 pages
    The document provides the full text of the Maceda Law (Republic Act No. 6552), which aims to protect buyers of real estate purchased through installment payments. Some key protections include allowing buyers a grace period to pay unpaid installments if they default, and requiring sellers to refund 50-90% of total payments made if the contract is cancelled after 2 years of installments. The law also gives buyers rights to sell their contract to another party or pay the full balance at any time without penalty. Any contract provisions that contradict the protections in the Maceda Law are considered null and void.

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    The document provides the full text of the Maceda Law (Republic Act No. 6552), which aims to protect buyers of real estate purchased through installment payments. Some key protections include allowing buyers a grace period to pay unpaid installments if they default, and requiring sellers to refund 50-90% of total payments made if the contract is cancelled after 2 years of installments. The law also gives buyers rights to sell their contract to another party or pay the full balance at any time without penalty. Any contract provisions that contradict the protections in the Maceda Law are considered null and void.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    149 views2 pages

    The Maceda Law

    Uploaded by

    vicenteferrer
    The document provides the full text of the Maceda Law (Republic Act No. 6552), which aims to protect buyers of real estate purchased through installment payments. Some key protections include allowing buyers a grace period to pay unpaid installments if they default, and requiring sellers to refund 50-90% of total payments made if the contract is cancelled after 2 years of installments. The law also gives buyers rights to sell their contract to another party or pay the full balance at any time without penalty. Any contract provisions that contradict the protections in the Maceda Law are considered null and void.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    The Maceda Law (RA 6552)

    The first logical step would be to know what law applies and what that particular law contains,
    which in this case would be the full text of Republic Act No. 6552, which is more popularly
    known as the Maceda Law.


    REPUBLIC ACT NO. 6552
    REALTY INSTALLMENT BUYER PROTECTION ACT
    AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON
    INSTALLMENT PAYMENTS
    Section 1. This Act shall be known as the Realty Installment Buyer Act.
    Sec. 2. It is hereby declared a public policy to protect buyers of real estate on installment
    payments against onerous and oppressive conditions.
    Sec. 3. In all transactions or contracts involving the sale or financing of real estate on
    installment payments, including residential condominium apartments but excluding industrial
    lots, commercial buildings and sales to tenants under Republic Act Numbered Thirty-eight
    hundred forty-four, as amended by Republic Act Numbered Sixty-three hundred eighty-nine,
    where the buyer has paid at least two years of installments, the buyer is entitled to the following
    rights in case he defaults in the payment of succeeding installments:
    (a) To pay, without additional interest, the unpaid installments due within the total grace period
    earned by him which is hereby fixed at the rate of one month grace period for every one year of
    installment payments made: Provided, That this right shall be exercised by the buyer only once
    in every five years of the life of the contract and its extensions, if any.
    (b) If the contract is cancelled, the seller shall refund to the buyer the cash surrender value of
    the payments on the property equivalent to fifty per cent of the total payments made, and, after
    five years of installments, an additional five per cent every year but not to exceed ninety per cent
    of the total payments made: Provided, That the actual cancellation of the contract shall take
    place after thirty days from receipt by the buyer of the notice of cancellation or the demand for
    rescission of the contract by a notarial act and upon full payment of the cash surrender value to
    the buyer.
    Down payments, deposits or options on the contract shall be included in the computation of the
    total number of installment payments made.
    Sec. 4. In case where less than two years of installments were paid, the seller shall give the
    buyer a grace period of not less than sixty days from the date the installment became due.
    If the buyer fails to pay the installments due at the expiration of the grace period, the seller may
    cancel the contract after thirty days from receipt by the buyer of the notice of cancellation or the
    demand for rescission of the contract by a notarial act.
    Sec. 5. Under Section 3 and 4, the buyer shall have the right to sell his rights or assign the same
    to another person or to reinstate the contract by updating the account during the grace period
    and before actual cancellation of the contract. The deed of sale or assignment shall be done by
    notarial act.
    Sec. 6. The buyer shall have the right to pay in advance any installment or the full unpaid
    balance of the purchase price any time without interest and to have such full payment of the
    purchase price annotated in the certificate of title covering the property.
    Sec. 7. Any stipulation in any contract hereafter entered into contrary to the provisions of
    Sections 3, 4, 5 and 6, shall be null and void.
    Sec. 8. If any provision of this Act is held invalid or unconstitutional, no other provision shall be
    affected thereby.
    Sec. 9. This Act shall take effect upon its approval.
    Approved: August 26, 1972
    Up next: Maceda Law salient features
    Of course, this post will not be complete without covering the salient features of the Maceda
    Law. This will be covered in the next part of this series. Please watch for it.

    Source: http://www.foreclosurephilippines.com/2011/04/maceda-law-full-text-ra-
    6552.html#ixzz2Og1s85xI

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