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    Maceda Law

    Uploaded by

    Angel Bucar

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    © All Rights Reserved
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    Maceda Law

    Uploaded by

    Angel Bucar
    8 views2 pages

    Original Title

    MACEDA LAW

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    Copyright:

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    8 views2 pages

    Maceda Law

    Uploaded by

    Angel Bucar

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    © All Rights Reserved
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    of 2

    S. No. 775 / 68 OG No.

    50, 9635 (December 11, 1972)

    [ REPUBLIC ACT NO. 6552, September 14, 1972 ]


    AN ACT TO PROVIDE PROTECTION TO BUYERS OF
    REAL ESTATE ON INSTALLMENT PAYMENTS

    Be it enacted by the Senate and House of Representatives of the Philippines in


    Congress assembled:

    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 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 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 Sections 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 or 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 provisions 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.

    Approved, September 14, 1972.

    Source: Supreme Court E-Library


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