LESSON 2 PART 2 Flashcards
formally known as the Realty Installment Buyer Protection Act
The Maceda Law
Who authored the Maceda Law
Senator Ernesto Maceda
The maceda law was enacted on
August 26, 1972
provides impressive protection to buyers of residential real estate properties who purchase under installment payment schemes. This aims to
ensure fair and equitable treatment of buyers in terms of cancellation, refund, and grace periods, while ensuring sellers’ interests are greatly considered.
The Maceda Law
Key Provision of the Maceda Law
- Rights of Buyers Who Have Paid At Least Two (2) Years
- Rights of Buyers Who Have Paid Less Than Two (2) Years
Rights of Buyers Who Have Paid At Least Two (2) Year
Buyers are entitled to a (blank), during which they can settle overdue payments without penalty.
minimum grace period of one (1) month per year of
installment payments made
Rights of Buyers Who Have Paid At Least Two (2) Year
Upon cancellation of the contract, the seller shall refund
50% of the total payments made
Rights of Buyers Who Have Paid At Least Two (2) Year
For payments made after five (5) years, an additional (BLANK) year may be granted until a maximum refundable amount of (BLANK) is reached
5% refund per yea
90%
Rights of Buyers Who Have Paid At Least Two (2) Year
Cancellation Procedure
The seller must provide a (BLANK), notarized and sent to the buyer.
30-day written notice
Rights of Buyers Who Have Paid At Least Two (2) Year
The contract will only be canceled (BLANK)
30 days after receipt of this notice.
Rights of Buyers Who Have Paid Less Than Two (2) Years
Grace Period
Buyers are still entitled to a (BLANK) to settle overdue
payments.
minimum 60-day grace period
Rights of Buyers Who Have Paid Less Than Two (2) Years
Refund Policy
Buyers are not (BLANK) if less than two years of installment payments have been made.
not entitled to refunds
Rights of Buyers Who Have Paid Less Than Two (2) Years
Formal Cancellation
Sellers must issue a (BLANK), notarized and delivered to the buyer.
30-day written notice of cancellation
is an important instrument for the Filipino buyers, assuring them withjustice in the transaction of real estate properties. The law protects the investments of buyers on an installment basis while at the same time ensures fairness by establishing clear provisions on grace periods, refunds, and cancellations. It accentuates the need for consumer protection in the housing industry, particularly among low-and middle-income households that use the installment structure to secure a home. With its continued implementation, this Law remains the bedrock of housing rights and
consumer protection in the Philippines.
The Maceda Law
also known as the Subdivision and
Condominium Buyers’ Protective Decree
Presidential Decree No. 957 (PD 957)
Presidential Decree No. 957 (PD 957), also known as the Subdivision and Condominium Buyers’ Protective Decree, was issued by (BLANK) on (BLANK)
President Ferdinand Marcos
July 12, 1976
It regulates the sale of subdivision lots and condominium units and imposes penalties for violations.
THE CONDOMINIUM ACT
SCOPE OF PD 957
The decree applies to:
Sale of Subdivision Lots
Sale of Condominium Units
These are residential lots that are part of a real estate
subdivision project
Sale of Subdivision Lots
These are real estate properties that are part of a
condominium development.
Sale of Condominium Units
