Are you planning to buy your own house or condominium? If paying the full purchase price is just too much for you, then you are better off paying in installments. If this is the case, then you should know that there is a law that protects homebuyers who decide to purchase their homes on an installment basis.
Republic Act No. 6552, or more commonly known as the Maceda Law or the Realty Installment Buyer Protection Act, deals primarily with one’s rights as a real estate investor or a real estate buyer paying in installments. It also describes the rights of a buyer defaulting in payments for such purchases. This law was authored by former senator Ernesto Maceda, hence its name, and took effect on August 26, 1972.
Let’s say you plan to buy that dream condominium unit in Makati, and being the posh, new building it is, the developers have offered it at a price with a lot of commas and zeroes in it. Unfortunately, your salary does not have as many commas or zeroes to match the property’s price, so you have availed yourself of the initial installment plan they offered, thinking that you could get a loan for it after two or three years of building equity.
But then after waiting, you ultimately did not get approved for a housing loan, and ended up defaulting. Now, you are in a pinch, and you do not know what to do or what your rights are. Well, keep reading and find out what the Maceda Law can offer you in your current situation.