Right to refund and the MACEDA LAW

by realestatelistings.ph on 04/07/2012 - 04:43 am

Categories: Laws & Governance, Real Estate Tips & Advice

I will keep this short and simple so that everybody can understand. A Full Text of the Maceda Law is also provided for your reference. 


At the end of this subject matter, you will be able to:

  1. Know your rights as Real Estate Investors
  2. Save yourself hundreds of dollars from consulting a Lawyer


Maceda Law in the Phillippines 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. 

FULL TEXT OF MACEDA LAW:
REPUBLIC ACT NO. 6552REALTY INSTALLMENT BUYER PROTECTION ACTAN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS    

Section 1. This Act shall be known as the “Realty Installment Buyer 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 of succeeding 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) If the contract is cancelled, 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.

Sec. 4. In case where less than two years of installments were paid, the seller shall give the buyer a grace period of not less than sixty days from the date the installment became due.

If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract 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.

Sec. 5. Under Section 3 and 4, the buyer shall have the right to sell his rights or assign the same to another person or to reinstate the contract by updating the account during the grace period and before actual cancellation of the contract. The deed of sale or assignment shall be done by notarial act.

Sec. 6. The buyer shall have the right to pay in advance any installment or the full unpaid balance of the purchase price any time without interest and to have such full payment of the purchase price annotated in the certificate of title covering the property.

Sec. 7. Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3, 4, 5 and 6, shall be null and void.

Sec. 8. If any provision of this Act is held invalid or unconstitutional, no other provision shall be affected thereby.

Sec. 9. This Act shall take effect upon its approval.

Comments

Romulo Cruz

Romulo Cruz - 09/25/2014 - 12:14 am

good day po. gusto lang itanong kung pwede kung bawiin ang binayad ko sa isang developer, nakabayad po kami ng 15 moths for 22,700 per month sabi nila malilipatan namin after 15 to 18 months subalit di pa namin nalilipatan pinag bayad na kami ng amortization worh 32 700 per month dahil approve na daw kami sa isang bank, at nag issue kami ng 13th checks after six months of paying the amortization tinawagan kami ng bank na denied daw ang housing loan namin kaya nagpunta kami sa opis ng developer upang itanong kung bakit na denied ang loan. ayun sa kanila me kulang daw kaming papeles subalit ng puntahan namin sa nasabing banko, ang sabi nila wala daw CERTIFICATE OF LAND TITLE ang bahay ala daw TITULO na nasubmit ang dveloper kaya na denied so mali ang sinabi sa amin ng developer namin at ang gusto pa nilang mangyari palitabn daw namin ang natitirang postdated checks na binigay namin sa pangalan ng developer hindi kami pumayag bagkus nagpasya na kami na bawiin na ang ang nahulog na mahigit half million. mag tatatlong taon na ngaun di pa namin nalipatan. sal;amat po.

Ed Desquitado

Ed Desquitado - 04/30/2014 - 08:02 pm

Nagbayad ako for 11yrs s aking housing loan under globe asiatique thru pagibig finncing , sinoli ko sya sa pagibig and pinaprocess ako ng dacion en pago ngayon me certifiction nko na tinurn over ko n xia , nag ask ako sa pg ibig kung panu ako ,a avail ng cash surrender value sa nahulog ko sabi sakin ng taga pag ibig di daw sila covered ng maceda law how true was it and me possibilities ba ako makarefund? Need comment and suggestions..... thnk u

Lyn Palafox - 12/03/2013 - 09:51 am

dear sir ng malaman ko po ang MACEDA law tmwag kagad ako sa acct.officer ng house and lot na hinuhulugan ko,from the time po ksi n voluntary surrender ko ang bahay sa knila,wla po silang nbanggit n may ma rerefund p ako that was july,then this dec.they just call me na til dec.15 nlng po ako without letter po ng cancellation un.basta thru phone lng po ang psabi.SO NOW NG ASK PO AKO IF MAY MAREREFUND AKO MABILIS N SAGOT SA KIN WALA AT NG TEXT DIN NA DHIL NAUBOS N SA INTEREST AND PENALTIES DW PO sa pg kakintindi ko hndi nila pwede i deduct un sa makukuha ko po rfund tama po b...san po b pwede mkakuha ng mgtatanggol sa kin pra sa rights ko..at ayaw p nila habaan ang pg stay nmin dito sa house..pls email po sir un sagot nyo sa tanung ko...maraming salamat po

Lyn Palafox - 12/03/2013 - 09:46 am

dear sir ng malaman ko po ang MACEDA law tmwag kagad ako sa acct.officer ng house and lot na hinuhulugan ko,from the time po ksi n voluntary surrender ko ang bahay sa knila,wla po silang nbanggit n may ma rerefund p ako that was july,then this dec.they just call me na til dec.15 nlng po ako without letter po ng cancellation un.basta thru phone lng po ang psabi.SO NOW NG ASK PO AKO IF MAY MAREREFUND AKO MABILIS N SAGOT SA KIN WALA AT NG TEXT DIN NA DHIL NAUBOS N SA INTEREST AND PENALTIES DW PO sa pg kakintindi ko hndi nila pwede i deduct un sa makukuha ko po rfund tama po b...san po b pwede mkakuha ng mgtatanggol sa kin pra sa rights ko..at ayaw p nila habaan ang pg stay nmin dito sa house..pls email po sir un sagot nyo sa tanung ko...maraming salamat po

Arvin De Lara - 09/08/2013 - 02:22 am

Hi po. Ask po sana ng advise. Nakabili po kasi kmi condo unit. Nabayaran na po nmin sa developer ung 20% downpayment for 2 yrs. Ngayon po nka-bank financing na & nka 1 yr na rin po kmi payment sa bank. More than 1.5M na po nabayad namin all in all.Sa ngayon po 3 months na kmi d nkabayad sa bank & we are deciding to give up the property kc d na kaya dahil may financial problem. Sabi po ni bank klangan daw nmin mgconfirm sa bank ng giveup notice para iforward nila sa developer for buyback. Maga-apply po ba sa case namin ang Maceda Law, may marerefund po ba kmi? What do we have to do & ano po pwede sabihin sa bank abt the Maceda Law? Pls advise asap, 1 wk na lang po bgay ni bank ng grace period samin e. Thanks po.

Mhay Cazeñas Cabico

Mhay Cazeñas Cabico - 08/02/2013 - 11:29 am

Gud PM ask ko lang po kc gagawa na po ako ng letter to surrender ng property ko sa Camella para sa Maceda Law dapat 5 yrs nko kaso 1 yr n akong d nkaka hulog tapos may mga payments na hindi na post ng bank In house po kc ako dati tapos bigla na lang nilang nilipat sa Planters Bank tapos sang sabi ng bank 1 yr na akong walang bayad pero nag bayad ako last March 2013 pero ang sabi nila pinasok daw nial sa penalty ng d nila sinasabi samin at about sa mga payment na d nila na post, imagine yung d pa nila na post na bayad eh Feb & June 2011 eh ang penalty nila 900 per day so ang laki ng penalty ko from 2011 to 2013 ang utang ko eh 17,405 x 12 =208,860 pero ang pina babayaran nila sakin ay 575K dahil daw sa penalty pwede ko pa po ba mahabol ung binayad ko na 38k last march 2013 na pinasok lang nila sa penalty na d naman nila pina alam samin? tsaka dun po ba sa cnasabing 50% eh sa monthly amortization po ba un or sa capital lang na nababayad or ung sa principal loan? like sakin ang montly ko eh 17,405 pero ang napupuntal lang sa prncipal ay less than 5K iba -iba kc ang napupunta sa principal pero d tumataas ng 5K then the rest is interest na kaya kung sasabihin nilang 50% lang ng nabayarang principal baka d pa umabot ng 200k ung makuha ko pero ang total ng nahulog ko eh nasa 800k na po. Sana po ay may maka sagot ng aking mga query pahabol ilang days pa po pwede may stay sa bahay pag sinurrender na yung bahay?

Zari Kitty - 07/11/2013 - 02:43 am

tulong lang po.. malinaw naman na sinabi ng maceda law about the full 50% refund. pero bakit iyung refund ko sa camella homes.. less than 50% ang ibibigay nila? sabi nila may mga other deduction pa? total payment ko was 308K pero ang ibabalik lang nila 86K na lang? tama ba iyon?

Andrew Galdones - 01/25/2013 - 10:48 am

this is my case i have paid the reservation, downpayment, and misc fees with no default but the developer cannot apply the property to pag ibig because the title is in the name of another person who is not residing anymore in the phil so he cannot sign or execute any contract for the developer. the property is still pending for application to pag ibig for 3 years now. can i refund the full amount i paid?

Joca Nam - 11/01/2012 - 11:28 pm

The law says that, "the buyer has paid at least two years of installments..and he/she has the right for refund. But the payment period for the down-payment for the property i supposed to purchased is 0nly 15 months. i already paid it but i failed to supply the further requirements for pag-ibig loan, then the developer cancelled my purchase.. please give me your brilliant opinion on this case on how MACEDA LAW can be applied. thank you.

Rochel Gutierrez - 08/31/2012 - 05:33 am

interest payment made is included in the 50% refund? pls help let me know