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Cres Subj 5.3 RA 6552 PG 91-92

The document summarizes key provisions of two laws: 1) Republic Act 6552 (Maceda Law) which provides rights for installment buyers including a 30-day grace period every 5 years, 30-day notice before contract cancellation, and refund rates of 50-90% depending on years paid. 2) Presidential Decree 1216 which requires developers to allocate 3.5-9% of the subdivision area for parks depending on density, and to donate completed roads, alleys, and playgrounds to the local government.

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Richard Villaverde
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120 views2 pages

Cres Subj 5.3 RA 6552 PG 91-92

The document summarizes key provisions of two laws: 1) Republic Act 6552 (Maceda Law) which provides rights for installment buyers including a 30-day grace period every 5 years, 30-day notice before contract cancellation, and refund rates of 50-90% depending on years paid. 2) Presidential Decree 1216 which requires developers to allocate 3.5-9% of the subdivision area for parks depending on density, and to donate completed roads, alleys, and playgrounds to the local government.

Uploaded by

Richard Villaverde
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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5.

3 REPUBLIC ACT (RA) 6552: MACEDA LAW


Rights of Installment Buyers
!
- Applicable to contract to sell only – residential lot, house and lot and con-
dominium
- 30-day grace period for every year of payment
- Note: Grace period can be availed once in every 5 years only
- 30-day notarial notice before cancellation of contract
- Transfer of rights
- Acceleration of payment without penalty interest
- Right of refund after 24 months (2 years) of instalments
- Rate of refund 50% from 2nd year – 5th year plus 5% per year in excess of 5
years, however, aggregate rate should not exceed 90%
- Cancellation of contract can be done only upon consummation of grace pe-
riod and notarial notice (if buyer has paid less than 2 years),
- However, if buyer has paid at least 2 years, requisites before cancellation of
contract are”
o notarial notice and
o payment of refund
!
!
REFUND (Maceda Law)
!
• Assumption:
Downpayment - P100,000.00
Total amortization inclusive of penalty - 400,000.00
Penalty - 50,000.00
Years Paid - 7 years
!
!
• Questions and Answers:
a) Grace period earned - 7 months
b) Rate of refund - 6%
c) Amount of refund
(P100K + P400K) = P450,000.00
x 60%
Refund P270,000.00
!
!
!
!
!
!
!91
PAREB–QCNREB : 5.3 RA 6552
Prepared for QCNREB. Rights reserved.
PRESIDENTIAL DECREE 1216
Salient Features
!
1. Subdivision developers are required to develop at least 30% of the gross area
of the project, inclusive of road, alleys and other service areas, for park and
recreation.
!
2. Minimum percentage of gross area for park is as follows:
!
Type of Subdivision Density (Lots/Ha) % of Parks
!
Open Market 20 & Below 3.5%
21 – 25 4.0%
26 – 35 5.0%
36 – 50 6.0%
51 – 65 7.0%
Above 65 9.0%
!
!
Type of Subdivision Density (Lots/Ha) % of Parks
!
Economic and 150 & Below 3.5%
Socialized 151 – 160 4.0%
161 – 175 5.0%
176 – 200 6.0%
201 – 225 7.0%
Above 225 9.0%
!
3. Provides that upon their completion as certified by the HLURB (now the local
government), the roads, alleys, sidewalks and playgrounds shall be donated
by the developer to the local government, and it shall be mandatory for the
local government to accept; provided, however, that the parks and play-
grounds may be donated to the Homeowner’s Association with the consent of
the local government.
!
4. Requirements for turn-over of roads to local government:
a) Completion of development
b) Certificate of completion
c) Execution of Deed of Donation
!
(Note: The developer shall be responsible for the maintenance of the roads
for as long as it maintains ownership thereof.)

!92
PAREB–QCNREB : 5.3 RA 6552
Prepared for QCNREB. Rights reserved.

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