By Stevenson Van Derodar

This post covers "The Maceda Law, Ra 6552."

Do you want to know your rights as a real estate investor, or simply as a real estate buyer who is making installment payments? 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. 

The Maceda Law, RA 6552 covers financing of sales of real property (which is why mortgages also come in.) It doesn’t apply, however, to the following sales:
1. Industrial lots
2. Commercial buildings and lots
3. Lands under the CARP Law

​MACEDA LAW (RA6552) Maceda Law in the Philippines applies to the purchaser of real property by installment payments when the purchase becomes cancelled by a delinquency in payment. It provides the buyer with a right to a refund as a requisite for cancellation of contract due to delinquency when the buyer has paid at least two years. The refund is 50% of total payments; additional 5% per year after 5th year.
To qualify for the Maceda Law, the buyer must have already paid at least 2 years of installment payments.
1. The buyer has the right to continue the unpaid installments due without additional interest provided that the buyer must pay within the grace period. The grace period provided is one month for every one year of installments paid.
2. The buyer has the right to opt for a refund of the installment payments being made (This includes the down payments, deposits or options on the contract). The buyer is entitled to 50% refund from his total payments made. An additional of 5% refund per year for every 5 years.
If the buyer has paid less than two years installment: The buyer has the right to continue his payments within a grace period of 60 days.

By Stevenson Van Derodar

Lesson 1: Own a property while you are young.

Honestly. Real Estate is for the young. It doesn’t mean though that when you are old you can’t own one but simply it implies that the earlier the property is of use, the better.

Lessen 2: Choose the location’s best advantage

There is something about location. Location defines value and predicts revenue. When you decide on a property, choose for the best location. The higher the zonal value, the better.

Lesson 3: Property management must work

For what is a property that is grand yet not well kept? Not only pertaining to your unit but the property management in general. Property management is an important key that makes or breaks property saleability.

Lesson 4: Make money from your property. Rent it out.

Depending on your target market, one thing for sure to take note of, make your unit appealing to the tenants. To make it very much appealing, it has to be accessible to major economic points. Malls, Churches etc. A walking-distance feature is a perfect offering to everyone.

Lesson 5: Security is a major concern, assure the place.

If locals would not be confident with your place how can you expect foreigners to be?
Many a foreigner, do not live outside Makati. Much more Foreigners hate traveling outside Makati and Quezon City.

Lesson 6: Appreciation. What’s in it for you?

Make a graph on all of your expenses on the property as well as to the property valuation it has attained. When your property’s scale is up compared to the neighboring properties, it indicates, your property is much better.

Lesson 7: Resale Value. Can you dispose your property right-away?

One truth that you need to know, your property must have resale value. The greatest failure for property owners is not being able to sell the property when it is for disposal.
Your property’s best value is when you can easily get buyers when you need it the most.
Obviosly, for it to be that resalable, the project must be well worth it.

According to Manila Bulletin report, Luzon, the largest island in the Philippines, was recognized the world’s second Trending Destination by TripAdvisor in its 2020 Travellers’ Choice Awards.
“Travelers are flocking to the island of Luzon, the largest island in the Philippines, to experience one of the more unique locations in the world. Yes, this is where the dynamic capital city of Manila is located, but more than that, it’s home to some of the most exquisite natural landscapes and biodiversity on the planet — from vast mountains and dense rainforests to endless beaches and coral reefs,” TripAdvisor wrote.
TripAdvisor, an online global travel platform, also listed popular destinations to visit in the country’s northern island, including the National Museum, Mt. Pulag National Park, and Fort Santiago.

Meanwhile, Cebu Island in the Visayas ranked 24th in the list.
“From the cosmopolitan metropolis of Cebu City and the white-sand beaches of Mactan to the electric-blue waters of Kawasan Falls and the whale sharks of Oslob, it’s easy to see why Cebu Island is one of the Philippines’ top destinations,” the travel platform said.
Among the top Cebu destinations cited were Casa Gorordo Museum, Tumalog Falls, and Sugbo Mercado.
Kochi in India topped the list, while Porto in Portugal, Porto Seguro in Brazil, and Gramado in Brazil ranked third, fourth, and fifth respectively.
TripAdvisor said the basis for the rankings were traveler reviews in 2019.
“The Trending and Emerging Destination winners are based on the feedback and growing interest from travelers on TripAdvisor and are therefore fantastic sources of inspiration and planning for discovering somewhere new,” said Neela Pal, VP of Brand for Tripadvisor, in a press statement.
​Meanwhile, Cebu Island in the Visayas ranked 24th in the list.
“From the cosmopolitan metropolis of Cebu City and the white-sand beaches of Mactan to the electric-blue waters of Kawasan Falls and the whale sharks of Oslob, it’s easy to see why Cebu Island is one of the Philippines’ top destinations,” the travel platform said.
Among the top Cebu destinations cited were Casa Gorordo Museum, Tumalog Falls, and Sugbo Mercado.
Kochi in India topped the list, while Porto in Portugal, Porto Seguro in Brazil, and Gramado in Brazil ranked third, fourth, and fifth respectively.
TripAdvisor said the basis for the rankings were traveler reviews in 2019.
“The Trending and Emerging Destination winners are based on the feedback and growing interest from travelers on TripAdvisor and are therefore fantastic sources of inspiration and planning for discovering somewhere new,” said Neela Pal, VP of Brand for Tripadvisor, in a press statement.


Luzon, Cebu as top trending destinations.

Please read full article on the Costs of buying properties in the Philippines by Global Property Group.

​Legal Procedures in transfer of title (land and apartments)

1. Owner and Buyer agree on sale of a piece of land. Through a lawyer, a Deed of Absolute Sale (DOAS) is created and notarized.

2. A Land Tax Declaration is secured from the Bureau of Internal Revenue (BIR) and submitted to the city or municipal Assessor´s office.

​3. Buyer pays real estate tax to the City Treasurer´s Office.

4. The Assessor´s office assesses the market value of the property.

5. Transfer taxes are paid by the buyer to the Assessor´s Office.

6. Capital Gains Tax and Documentary Stamp tax are paid to BIR.

7. The Registry of Deeds (RD) cancels old title and issues a new one in the name of the buyer.

8. The buyer, now the new owner, obtains a photocopy of the new title and requests tax declaration from the Assessor´s office.

Ownership is evidenced by the Transfer Certificate of Title (TCT) in the case of single houses and raw land, and The Land Registration Act requires the owners of property to register titles with the Registry of Deeds. The titles must be registered in the same province as the property. However, the records are inaccurate in such that overlapping might exist. There is a proliferation of fake and double titles. The completion of survey of all the lands in the country, mandated by the 1903 Public Land Law, is nowhere in sight.
The whole process of registering property may take around 39 days to complete eight procedures.

The Philippines experienced a house price boom from 2010 to 2018, with Makati CBD prices rising by almost 132%. But with a slowing domestic economy, coupled with the US-China trade war, the housing market slowed sharply last year. See full report from this article: 
The Philippines’ housing market is now two-tiered

In an article in Philippine Daily Inquirer, PH realty sector remains hopeful amid threat.

Real estate firms and property market specialists are hoping that the industry will still remain resilient against the threats posed by the rising incidence of COVID-19 cases in the country.

COVID-19 refers to the disease caused by a new strain of coronavirus (SARS-CoV-2) that reportedly emerged from the wildlife market in Wuhan City, the capital of Hubei province in central China. Since reports of the outbreak came out in December 2019, the disease has since spread to 114 countries and territories, killing 4,300 people and affecting over 121,000 others as of this writing.
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