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Ra 6552 Maceda Law

This document discusses key provisions of Republic Act 6552, also known as the Maceda Law, which provides protection to buyers of real estate purchased through installment payments. It covers transactions involving the sale or financing of real estate paid in installments. The law establishes two categories of protected buyers: those with at least two years of installment payments who are entitled to grace periods and cash surrender values; and those with less than two years of payments who have a minimum 60 day grace period. The document provides details on calculating grace periods and cash surrender values owed to buyers. It also outlines rights regarding assigning contracts, reinstating payments, and making advance payments without interest.

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Josue Sandigan Biolon Secorin
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121 views3 pages

Ra 6552 Maceda Law

This document discusses key provisions of Republic Act 6552, also known as the Maceda Law, which provides protection to buyers of real estate purchased through installment payments. It covers transactions involving the sale or financing of real estate paid in installments. The law establishes two categories of protected buyers: those with at least two years of installment payments who are entitled to grace periods and cash surrender values; and those with less than two years of payments who have a minimum 60 day grace period. The document provides details on calculating grace periods and cash surrender values owed to buyers. It also outlines rights regarding assigning contracts, reinstating payments, and making advance payments without interest.

Uploaded by

Josue Sandigan Biolon Secorin
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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Course: ELEC.

2 Real Estate Brokerage


Objective: To introduce to students in the Real Estate Brokerage practice by equipping
them with the concepts and harnessing to them the standards and other considerations in
this career, at the same time to prepare them to be equip on the board examinations.
Module: 4
Week: 14

PART V OTHER RELATED REAL ESTATE LAWS

REPUBLIC ACT # 6552 (Maceda Law) AN ACT TO PROVIDE PROTECTION TO BUYER


OF REAL ESTATE ON INSTALLMENT PAYMENTS

WHAT IS THE COVERAGE OF THE PROTECTION?


– transactions or contracts, involving the sale or financing of real estate on installment
payments, including residential condominium apartments

EXCEPTIONS TO THE COVERAGE:


1. Industrial lots,
2. Commercial buildings and
3. Sales to tenants under RA# 3844 4.
Installment sales covered by Sale with Mortgage and not by Contract to Sell.

Two categories of buyers accorded protection under this law:


1. a buyer with at least 2 years of installments under Section 3 RA 6552, and 2.
a buyer with less than 2 years of installments under Section 4 RA 6552

 Buyer with at least two (2) years of installment – Section 3 RA 6552


1. To pay without additional interest the unpaid installments due within the total grace period
earned.
• Buyer with at least two (2) years of installment – Section 3 RA 6552 a. Grace period is
equal to one (1) month for every year of installment payments; Hence, at least two (2)
months grace period. b. This right can be exercised by the buyer only once in every five
years of the life of the contract
• Buyer with at least two (2) years of installment – Section 3 RA 6552 2. In case of contract
of cancellation, - to be refunded of the cash surrender value of his payments equal to
50% of his total payments.
• Buyer with at least two (2) years of installment – Section 3 RA 6552 2. In case of contract
of cancellation, b. If he has paid five years or more, he is entitled to an increase of 5%
every year and so on c. But the cash surrender value shall not exceed 90% of his total
payments.
• Buyer with at least two (2) years of installment – Section 3 RA 6552 2. In case of contract
of cancellation, d. after thirty days from receipt by the buyer of the notice of cancellation
or demand for rescission of the contract by a notarial act
1

Problem: (2002)
– A has been paying on installment a subdivision lot since Jan. 2002 at the rate of
3,000/month after a DP of P10,000 to a Subd. Dev. Company
– In Jan. 2010, due to some financial problems, she defaulted to pay his installments. The
company decided to cancel the contract after giving her notarial notice Q.1.
How many months is the grace period of A?
Q.2. How much is the cash surrender value due to cancellation of his contract? Show your
computation
A.1. The unpaid installment payments which are due and demandable shall have a grace
period of 1 month for every 1 year of installment payments made.
2010-2002 8 years x 30 days 240 days or 8 months grace period

A.2. Total monthly amort. Paid, inclusive of penalty (96 amort. At P3000)P288,000
Add: DPayment 10,000 TOTAL: P298,000 Factor for the
refund 65% Cash Surrender Value P193,700
Buyer with less than 2 years of installments Section 4 RA 6552 1. the right to pay within a
grace period of not less than sixty (60) days from the date the installment became due.
Buyer with less than 2 years of installments Section 4 RA 6552 Failure to pay the installment
due at the expiration of the grace period, i.e. 60 days, the seller may cancel the Contract
after 30 days from receipt by the buyer of the notice of cancellation or demand for rescission
of the contract by a notarial act.
Items be included in the computation of the total number of installment payments made 1.
Down payments, 2. deposits or 3. options on the contract

Right to Assign/Reinstate Contract (Sec. 5)


e lot or unit to another person or
reinstate the contract by updating the account provided this is done during the grace period
and before actual cancellation of the contract

Right to Advance Payment without Interest and Annotation of Full Payment in the Title
Subject of the Sale (sec.6)

time and have such full payment annotated in the title.

References:

Mallonga R. (2013). Comprehensive Real Estate Seminar Reviewer. E-Global Order


Corporation. Butuan City, Philippines.

Pobre, G. (2012). Comprehensive Agrarian Reform Program. Comprehensive Real Estate


Seminar. PAREB-DBRFI. Davao City, Philippines
BIONGAN-PESCADERA, M, (2014). Property Documentation and
Registration. Comprehensive Real Estate Seminar. PAREB-DBRFI. Davao City, Philippines

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