RIGHTS OF INSTALMENT BUYER OF RESIDENTIAL PROPERTY | LOT, HOUSE & LOT, OR CONDO UNIT

Sale of Real Property; Sale of House and Lot; Sale of Condominium Unit; Realty; Real Property; Maceda Law; RA 6552; Realty Installment Buyer Protection Act; Real Property Law in the Philippines; Real Estate Law in the Philippines; Real Estate Developer; Real Estate Investor; Rental Property; House and Lot; Residential Property; Condominium Unit; Refund; Grace Period; Notice of Cancellation; Demand for Rescission; Assignment of Rights; Housing Loan; Real Estate; Default; Pag-IBIG Fund; HDMF; financing institution; Real Estate Mortgage; Buying Real Property; Buying Rental Property; RA 11469; Bayanihan to Heal as One Act; RA 11494; Bayanihan to Recover as One Act; Enhanced Community Quarantine; Philippine Laws; Housing Loans. HOUSING LOAN; NON-PAYMENT OF LOAN; NON PAYMENT OF HOUSING LOAN; DI NABAYARAN NA INSTALMENT NG BAHAY AT LUPA O CONDOMINIUM UNIT; DI NABAYARAN NA UTANG SA BINILING BAHAY, LUPA O CONDO UNIT; Are you one of those buyers of residential properties, such as residential lot, house and lot and condominium unit, from real estate developers? Are you now having a hard time in catching up with your instalment/installment payments, especially with the current economic situation brought about by the COVID-19 Pandemic? Or you simply have come to think that buying that residential property was not a good idea at all and that you want to cancel the purchase but you are wondering if you can get your money back? Are you entitled to a refund if you cancel the purchase of the residential property? In this video, Your_Lawyer endeavours to bring light to these questions. This video discusses the rights of an instalment/installment buyer of residential properties (residential lot, subdivision house and lot or condominium unit) under Republic Act No. 6552 or the Realty Installment Buyer Protection Act. This law is more commonly known and referred to as the Maceda Law, named after its mai author, Former Senator Ernesto Maceda.
The following are the salient provisions of RA 6552:
“Section 2. It is hereby declared a public policy to protect buyers of real estate on installment payments against onerous and oppressive conditions.
Section 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 canceled, 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.
Section 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.
Section 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.
Section 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.
Section 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.“

[@joelmillares2176]

Thank you verymuchATTY iv'e learned a lotabout he requirements of th D.A.R.WHICH ARE ALL RED TAPES THAT WHY PLENTY OF INVESTORS EITHER GO TO THA ILAND VIETNAM AND CAMBODIA.

[@cebuhomesforsalerent7483]

nice thank you, Atty

[@nidaguantero2500]

Thanks as info

[@imierellorta1353]

sir may problem is di ko lang po nacomply yung mga requirements and now sabi pag ti ako makapagcomply sa date na binigay nila is iforfeit daw yung house na kinuha ko sir..what to do sir?

[@clvrealty]

Whatbif nakapagbayad na ng downpayment at hindi pa rin tini-turn over ang unit where in fact na nakasaad sa agreement na ite-turn over ang unit after DP... at the same time nakakapagbayad na rin ng amortization for 8 months pero wala pa rin ang unit... hanggang sa nag stop payment na si Buyer for a year..suddenly cancel na raw ang unit without receiving notice from the developer..

[@rodolfoparagas4208]

Hello Sir/Atty. gud day! ask lang po sana ano maganda gawin sa nabili namin lot sa isang subdivision, wala pa kasi ako nalaman na ganitong case kung ano maganda gawin. S a original na contract namin ang total lot area is 400sqm, nakuha nmin ito last 2021 at malapit ko na matapos bayaran maliit nlng balance dahil nag aadvance payment ako. Now nagpatawag ng meeting ang developer, kaso out of country po ako., pina attend ko is brother ko. Ang sabi daw ng developer eh nagkamali sa pagsurvey ng mga lot at kaylangan magbawas, at kung magkano ang amount ng mababawas na sukat ng lot ibawas din sa payment as per price sa contract. pwede po ba yun ganon nalang na bigla sasabihin ng ganon eh malapit na kmi matapos, eh malaki po babawasin sa lot ko 64 sqm... pano po kung di ako papayag, may karapatan ba ako na idemand yung total ng lot as per sa contract at babayaran ko naman yung kabuan ng total lot as per a stated lot area ng contract. Thank much po kung masasagot po nyo ang katanungan ko.

[@bles8597]

How to sell Phil property if u are US Citizen