Right of refund under Maceda Law

Pricey PAO,

I’ve been paying a subdivision lot on installment foundation for 3 years. Sadly, the hot pandemic has affected our financial savings and money waft. Because of this, we intend to hunt money back from the developer of the volume that shall we get well pursuant to the so-called Maceda Regulation. Regretfully, the developer and our actual property agent had been uncooperative and didn’t lend a hand us on our request. Might we all know if we will actually call for for the refund and would possibly we all know the place we will ask for help/criticism for such?


Pricey Kent,

The solution on your query is perfect addressed via the provisions of Republic Act (RA) 6552, another way referred to as the “Realty Installment Purchaser Act” or the “Maceda Regulation.” Succinctly, Segment 3 (b) of the mentioned legislation reads:

“Segment 3. In all transactions or contracts involving the sale or financing of actual property on installment bills, together with residential rental residences however except commercial loads, industrial constructions and gross sales to tenants underneath Republic Act Numbered Thirty-eight hundred forty-four, as amended via Republic Act Numbered Sixty-three hundred eighty-nine, the place the consumer has paid a minimum of two years of installments, the consumer is entitled to the next rights in case he defaults within the cost of succeeding installments:

(a) x x x

(b) If the contract is canceled, the vendor shall refund to the consumer the money give up worth of the bills at the belongings identical to fifty (50) p.c of the whole bills made and, after 5 years of installments, an extra 5 (5) p.c once a year however to not exceed 90 (90) p.c of the whole bills made: Equipped, that the true cancellation of the contract shall happen after thirty (30) days from receipt via the consumer of the awareness of cancellation or the call for for rescission of the contract via a notarial act and upon complete cost of the money give up worth to the consumer.

Down bills, deposits or choices at the contract will probably be incorporated within the computation of the whole selection of installment bills made.” (Emphasis and underscoring provided)

Making use of the foregoing, it’s transparent {that a} purchaser of an actual property on installment foundation who had paid a minimum of two years of installment bills is entitled to money back identical to fifty (50) p.c of the money give up worth of the whole bills made. Additionally, for functions of this computation, it will have to be famous that the down bills made, deposits or choices at the contract will have to even be incorporated within the overall selection of installment bills made for functions of the refund.

Within the match that the consumer on installment foundation fails to obtain the important the aid of the developer, broker, dealer, agent or salesman within the enforcement of his/her proper to refund underneath the Realty Installment Purchaser Act, the latter would possibly report a verified criticism or a duly achieved criticism earlier than the Regional Arbitration Department (“RAB”) of the Human Settlements Adjudication Fee (“HSAC”), which has jurisdiction over the area the place the challenge concerned is positioned as equipped within the Human Agreement Adjudication Fee En Banc Solution Quantity 8 collection of 2021, or recurrently known as the Laws of Process of the HSAC. In your steerage, Rule 1, Segment 2 of the mentioned rule dictates:

“Segment 2. Protection. – Those regulations shall govern the lawsuits earlier than the HSAC and shall practice to the next disputes or controversies:

(a) Instances involving subdivisions, condominiums, memorial parks and identical actual property tendencies:

(1) x x x;

(2) Claims for refund and different claims filed via a subdivision lot or rental unit purchaser in opposition to the challenge proprietor, developer, broker, dealer or salesman x x x.”

We are hoping that we had been in a position to reply to your queries. This recommendation is based totally only at the details you will have narrated and our appreciation of the similar. Our opinion would possibly range when different details are modified or elaborated.

Editor’s word: Pricey PAO is a day by day column of the Public Legal professional’s Place of job. Questions for Leader Acosta is also despatched to [email protected]

Author: Guest Author