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Against: Buyers

Republic Act No. 6552, known as the Realty Installment Buyer Protection Act, aims to protect buyers of real estate on installment payments from unfair conditions. Buyers who have paid at least two years of installments are granted specific rights in case of default, including a grace period for unpaid installments and a structured refund upon contract cancellation. The Act excludes certain types of properties and establishes guidelines for calculating refunds based on the duration of installment payments made.

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Ashryle Salazar
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9 views1 page

Against: Buyers

Republic Act No. 6552, known as the Realty Installment Buyer Protection Act, aims to protect buyers of real estate on installment payments from unfair conditions. Buyers who have paid at least two years of installments are granted specific rights in case of default, including a grace period for unpaid installments and a structured refund upon contract cancellation. The Act excludes certain types of properties and establishes guidelines for calculating refunds based on the duration of installment payments made.

Uploaded by

Ashryle Salazar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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REPUBLIC ACT No.

6552

AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON


INSTALLMENT PAYMENTS.

Section 1. This Act shall be known as the "Realty Installment Buyer


Protection Act."

Sec. 2. It is hereby declared a public policy to protect buyers of real


estate on installment payments against onerous and oppressive
conditions.

Sec. 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 he
defaults in the payment ofsucceeding installments:

(a) To pay, without additional interest, the unpaid installments due


within the total grace period earned by him which is hereby
fixed at the rate of one month grace period for every one year of
installment payments made: Provided, That this right shall be
exercised by the buyer only once in every five years of the life of
the contract and its extensions, if any.

(b) Ifthe contract iscanceled, the seller shall refund to the buyer the
cash surrender value of the payments on the property
equivalent to fifty percent of the total payments made, and after
five years of installments, an additional five percent every year
but not to exceed ninety percent of the total payments made:
Provided, That the actual cancellation ofthe 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.

255

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