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Maceda Law (RA 6552) - Governs The Sale On Financing of A Real Estate, Including Condominium Units

The Maceda Law governs real estate transactions purchased via installments over a period of at least 2 years. It aims to protect buyers from onerous contract terms. The law does not apply to industrial/commercial property or sales under agrarian reform laws. If a buyer has paid for 2+ years, they have options to avoid default like paying late with interest or selling rights. If cancelled, they receive 50-90% of payments as cash surrender. With less than 2 years paid, buyers have 60 days to pay before automatic cancellation.

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Aljay Labuga
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84 views1 page

Maceda Law (RA 6552) - Governs The Sale On Financing of A Real Estate, Including Condominium Units

The Maceda Law governs real estate transactions purchased via installments over a period of at least 2 years. It aims to protect buyers from onerous contract terms. The law does not apply to industrial/commercial property or sales under agrarian reform laws. If a buyer has paid for 2+ years, they have options to avoid default like paying late with interest or selling rights. If cancelled, they receive 50-90% of payments as cash surrender. With less than 2 years paid, buyers have 60 days to pay before automatic cancellation.

Uploaded by

Aljay Labuga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Maceda Law (RA 6552)- governs the sale on financing of a real estate, including condominium units,

which are purchased on installment basis; covers both absolute sale and contract to sell, provided
that the terms of these contracts have at least 2 years installments.

Purpose: to protect the buyers from onerous and aggressive conditions of real estate installments.

The law doesn’t apply to:


1. Sale involving industrial lots
2. Sale involving commercial buildings and commercial lots
3. Sale to tenants of agrarian reform laws
4. If the sale was made in straight payments

The rights of the buyer in case of default


A. If the buyer has paid at least 2 years worth of installment
1. The buyer is allowed to pay the additional interest and given a grace period of 1 month for every
year of installment payment made and can only be done once every 5 years.
2. The buyer may sell or assign his right to a 3rd party or reinstate the contract within the grace
period prior to the actual cancellation.
3. Pay any unpaid installment in advance without additional interest.
4. Annotate the payment title.

- in cases the contract is canceled


1. The buyer gets a refund and shall be entitled to cash surrender of 50% of the total payments made,
if the contract exceeds 5 years, he shall be entitled to 5% of every year of payments made provided
that the total amount shall not exceed 90% of the total payments made.

Cancellation shall only takes place within 30 days of receipt of notice of cancellation or demand for
recession by notarial act and 30 days after receipt of the cash surrender value

B. When the buyer has paid less than 2 years worth of installment
1. He is only given 60 days grace period counted from the date of the last installment. Failure to pay
within the grace period tantamount to the cancellation of the contract.
2. Buyer may sell or assgin his right to a 3rd party
3. Reinstate the contract
4. Pay any unpaid installment in advance without additional interest.

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