PAYING INSTALLMENT AND THE LAW PROTECTING YOUR RIGHTS

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.

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