kindly read, the Maceda Law
Republic Act No. 6552, otherwise known as the "Realty Installment Buyer Protection Act", or more popularly the "Maceda Law", was approved on August 26, 1972 to protect real property owners from inequitable conditions imposed on sale transactions involving real estate purchase financed through installment basis. .
Under the Maceda Law, buyers of real properties who have paid at least two (2) year
installments but defaults in the payment of the remaining installments, and the contract is
thereafter cancelled, are given the benefit of, among others, the refund of a percentage of the
cash surrender value of the payments on the property, thus:
"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 M defaults in the payment of succeeding
installments:
XXX
(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." (Emphasis
supplied.)
