I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
These two laws are relevant and are very often the issue of many court cases. Both laws govern the sale of property by installments. The Recto Law, which forms part of the Civil Code, covers installment sales of personal property while the Maceda Law governs installment sales of real property.
The Recto Law
The Recto Law comprises Articles 1484 to 1486 of the Civil Code. It was added to the Civil Code to prevent abuses in the foreclosure of chattel mortgages, such as when mortgagee-creditors foreclosed mortgaged property, bought them at a low price (on purpose,) then prosecuted the mortgagor-debtors to recover the deficiencies.
In the event a buyer of personal property defaults by failing to pay two or more of the agreed installments, the seller can do any of the following:
1.) Demand that the buyer pay (a.k.a. specific performance)
2.) Cancel or rescind the sale
3.) Foreclose the mortgage on the property bought (if there ever was a chattel mortgage)
Regarding no. 3, this happens when a person takes a loan to buy something and he mortgages the thing he bought to ensure the creditor that he will pay the loan. Remember: If you choose one remedy, you can't choose the others. These remedies, believe it or not, are also available to the buyer. You also can't use all or any of them at the same time. The Recto Law also won't apply to a straight sale (i.e. a sale where there is a downpayment and the balance is payable in the future in a single payment only.) The seller can also assign his credit to another person, making that person the new creditor.
If the buyer refuses to surrender the items to the seller, he becomes a perverse buyer-mortgagor. When that happens, the seller can recover expenses and attorney's fees.
The Recto Law also covers leases with the option to purchase.
The Maceda Law
The Maceda Law, RA 6552, is the real estate equivalent of the Recto Law. Like the Recto Law, it also covers financing of sales of real property (which is why mortgages also come in.) It doesn't apply,however, to the following sales:
1.) Industrial lots
2.) Commercial buildings and lots
3.) Lands under the CARP Law
Depending on when the buyer defaults, there are two (2) possible scenarios: if the buyer paid at least two (2) years' installments and if the buyer paid less than 2 years' installments.
If the buyer paid less than 2 years' installments and defaults, he is given a grace period of sixty (60) days starting from the date of his last installment to resume paying. This period can be increased by the seller. If after the grace period the buyer still can't pay, the seller must make a notarial demand to cancel the sale. The cancellation becomes effective thirty (30) days after the buyer was notified. So it's possible that the buyer could be notified two months after the 60-day period and then the 30-day period will begin.
If the buyer paid at least two years' installments, the buyer can pay the unpaid balance without interest. The grace period is computed at one (1) month per year of installment payments. It also begins from the time the buyer paid his last installment. The grace period can be used only once every five (5) years of the sales contract's life -including its extensions. So it's possible to have a grace period of a year if the buyer had been paying his installments faithfully for 12 years. Once the buyer chooses to use the grace period, he can't get it again until another five years are over.
If the seller wants to cancel the sale, he has to refund the buyer of 50% of the actual payments. If the buyer paid more than five years' installments another 5% for every year is to be added to the refund, but only up to 90% of the total payments made. The payments mentioned here include the downpayment, options and deposits. The refund is made in this way: if the buyer paid more 2 to 5 years' installments, he can get back 50% of the cash surrender value. If he paid for more than 5 years, he can get the 50% plus 5% per year up to 90%.
The buyer is also allowed to make advanced payments, or even the full price, without interest. He can also assign his rights to another person, making that person the new buyer, but he can only do that with a notarial deed of sale assignment.
The Maceda Law cannot be used by a real estate developer (see here.) It also cannot be used by the highest bidder in foreclosure proceedings.
141 comments:
Thanks for your insightful post. On a point of clarification. You state that the law excludes commercial buildings AND lots but RA 6552 only indicates that commercial buildings are not covered. It does not explicitly state that commercial lots are not covered.
Am I therefore correct in inferring that commercial lots ARE in fact covered by RA 6552?
Just a little confused. Thanks for your help.
Steve
Hi Steve, thanks for your comment. Real property, under the Civil Code, refers to the land as well as the permanent structures built on it. Therefore, the sale of a building normally includes the lot it is built on. The exception is if the sales contract specifically stated that only the building is for sale. That's why there are some pretty funny scenarios that actually can come up, such as the building being owned by one person and the lot by another. RA 6552 is a law that governs the process of the sale of real property, it's not the law on real property itself. The general law for real property is the Civil Code. The exceptions are found in different laws (CARP, etc.)
Hi Enrico - Thanks for your response. I take your point that a commercial building must obviously be built on a commercial lot but, as in my case, a residential building can also be built on a commercial lot.
Since RA6552 specifically states 'commercial building' and not lot my question still remains. Is it the commercial building that is not included or the commercial lot?
I'm not sure if I've explained that properly.
Steve
PS: It's actually section 6 I'm concerned about. My developer is refusing to accept full payment of the principal and is instead insisting that I also pay projected interest for the next five years. This seems to be not only ridiculous but also contrary to section 6.
Hi Steve,
So your building is a residential one on a commercial lot? Yes, that's also possible. But that kind of scenario can lead to complications. One such problem is the dispute between tax law and property law on the treatment of a building built on a type of lot. Under tax law, a building built on a commercial lot is considered commercial for tax purposes regardless of whether it's a commercial building or not. Property law treats it differently. I'll ask my teacher in property law about how your building should be treated.
If ever you do decide to buy another lot in the future, however, my advice is that you have the lot reclassified before you develop it so you can avoid any complications.
Regarding Sec. 6, you are perfectly within your rights because under the basic doctrine on contracts, contracts are the law of both parties unless they contain provisions that are contrary to law.
Hope this helps for now.
Enrico
Hi Steve,
My teacher says that your lot should be treated as residential for non-tax purposes. For tax purposes, however, it's still commercial. He also said you might want to put up a small store in the building so that you can avoid paying the 6% Capital Asset Tax and the 1% Documentary Stamp Tax. The problem kasi is the BIR will be looking at the market value of the land and will base their assessment on either the market value or the gross selling price, whichever is higher.
Enrico
Hi Enrico - Thanks for the response and for taking the time to talk to your teacher.
Regards
Steve
You're welcome, Steve.
Hi Enrico,
Very insightful this blog to me. Reading from your post under buyer paid less than 2 years' installment and default. To me, it is more of a seller's right than the buyer's right. What are the rights of the buyers if he paid less than 2 years?
Fred
Hi Fred,
It's already there; and yes the provisions appear to sound like seller's rights. They're actually more of a requirement for the seller. You see, if the buyer defaults in his payments the law won't allow the seller to cancel the contract outright.
The grace period serves the buyer. It allows him to make good on his payments for a total of 90 days (if he paid less than 2 year's worth of installments -remember the 60 and 30 day periods.)
So the right can be read out like this: if you can't pay, you have the right to be given time to pay. The seller can't kick you out until he has exhausted all remedies available to him. Some rights, kasi, are inferred from statements in law. A common example is that in tax law, what is not covered is not taxed -so don't be fooled by the taxman when he comes to make an assessment.
There's a rule in law we refer to as the Exhaustion of Remedies rule. It states that before somebody can go to court, he has to exhaust all remedies available to him (settlement, grace period, etc.) otherwise his case will be dismissed outright.
Enrico
Hi Enrico, thank you for your response. Would it be possible for you to cite other examples or scenario where the rights of the buyer had been violated and that seller's right in so far and the maceda law is concern does not apply. I raise this because certain sellers/developers also use maceda law as their rights, for example, they are going to cancel the 'contract to sell' for those payments of less than 2 years.
There is an existing case I know that because of the impending housing loan application with the bank (where the seller/developer itself made an application on behalf of the buyer) but because the bank insist of a stricter requirements, the application could not be approved. And such application is taking time. Then the seller/developer is demanding payment from the buyer when in the first place no loan application has yet been approved. They sent letters with the 30 day notice and said they are going to cancel the contract and forfeit the downpayment considering the buyer made only payment of less than 2 years in accordance with the Maceda law.
Thanking you in advance for this.
Fred
Hi Fred,
Sorry for the late reply. Just finished our delayed midterms.
Regarding the example you mentioned about the developer asking for payment when the bank hasn't approved a loan yet, that's an example of an onerous and oppressive condition in the Lagandaon case. They can't demand payment until the loan has been released because contracts with illegal provisions (such as what you mentioned) are not binding.
There's another case, if you'd like; Active Realty & Development Corp. vs Daroya, GR 141205, May 9, 2002. This case goes into deeper explanation about the "onerous and oppressive conditions" mentioned in the Lagandaon Case. I've just posted it right. Although the case doesn't mention any specific practices, it uses the catch-all term in Civil Law known as "Contracts of Adhesion." Contracts of adhesion are strictly interpreted against the person who draws them up. They have a duty to inform the signer completely. Then, they have to fulfill their part of the contract. If not, they can be held liable. Hope this helps.
Enrico
I am a relatively new seller. I want to offer installment payments for what I sell.
Should I return the full amount they paid should they cancel their purchase(s)?
The stuff I sell are of high value and mobile (can be moved from place to place).
hi atty enrico,
please enlighten me about this law...does the 'maceda law' covered the fully paid equity?if i want to cancel the contract due to its been 3 years i fully paid the equity and the purchase house and lot is not yet built.what action should i make to get may money back?atty. many of my fellow workers are not aware of this law..
sincerely
alejo
HELLO ATTY ENRICO,
I would like to inquire about my lot which i purchased 3 years ago. for 2 years I was able to pay on time for my monthly amortization due to some financial problems in the 3rd year I was not able to pay my due. I am already 3 months delequent in paying my monthly due so I asked my sister in the Philippines to go to the main office for re computation because I want to lower down the monthly amortization but they insist in paying my 3 months due before the re-computation until my sister has been pass on to different personnel so it ended up nothing happened to my request. It's been a year and a half since then that now I asked my sister to go to main office to inquire about my lot and one of the personnel there inform her that the lot is no longer to mine. I already paid half of the value of the lot. what is my right? please help. thank you
Hi everybody. Sorry for the late reply. I've been busy.
Solixua88, in your case the Recto Law is what you will be using. In case the buyer decides to cancel a sale, the ordinary rules on contracts state that both parties should return to each other what they have been given. However, the items must be in more or less the same condition as they were when the sale was made. If the item you sold was returned to you in pieces, definitely, the contract can't be cancelled. My advice to you is that you put the money on time deposit so that if the buyer decides to cancel the sale, you will still have money left.
Alejo, and Lyra, I'll have to ask my teacher in Commercial Law what you should do.
By the way, Lyra, I forgot. Since you have been paying for the lot for at least 2 years, you can ask for a cancellation under the Maceda Law's above 2 year's payment rule. That way, you can get back 50% of what you paid plus 5% per year for every monthly installments paid (but you can only get back up to 90% of the money that you paid.)
Hi Enrico,
I just want to know more about my issue, coz we bought a house and alot under BF citiland but the property was loaned from Allied bank, but i'm paying the mortgages in BF citiland developer. Is Maceda law still covers this coz i've been paying the property for almost 5 years now but something came up and i might not be able to contiue with the said mortgage. Is there a possibility that i can also request for refund? Thanks and in advance.
regards,
Hi Noli,
Yes, you can ask for a request. What the Maceda Law says is at least 2 years. You're in for almost 5 years, so you are perfectly within the requirement.
Enrico
Hi Enrico,
thanks for your reply, sorry for asking again coz my friend in realty business said that if the property is under a mortgage, this is not included on the maceda law is this correct. Please help me to know the truth about this issue, before giving them my decision. thank you so much.
Regards,
Noli
Hi Noli,
Mortgages are also covered by the Maceda Law. Normally there are 2 parties in a sales contract: the buyer/debtor and the seller/creditor. When you enter into a mortgage to secure the loan to finance the property you're buying, a new party enters: the financing company, which can be a bank, Pag-ibig, or any other agency. When you take a loan, the law considers the bank/Pag-ibig, etc. as taking the place of the original creditor/seller. If a financing contract forms part of the sales contract (like Pag-ibig financing, for instance) it's as if the seller becomes a collector of the bank, Pag-ibig, etc.
Enrico
Another thing Noli. I just remembered. When the seller becomes the collector, the financing company, Pag-ibig, bank, etc. becomes the real seller/creditor.
thanks Enrico for giving me alot of information on this matter.
Hi! Enrico,
Thank you so much for such a wonderful interpretation of the law. I need advice regarding the lot that I bought in the Philippines under Sta. Lucia Developer. I've been paying for this property for almost a year now, but until now we still haven't receive the original copy of the "contract to sell," and since we are currently having a financial difficulty I requested for a refund because I think that they didn't fulfill their responsibilities by not providing me with copy of the contract and other documents, and when I asked my contact the real estate agent she told me that it wasn't notarized yet, so I don't know if the contract valid. She also mentioned that we will not get a refund because of the Maceda law, we need at least two years of payments. So I requested to transfer the lot to a smaller size instead. Luckily they approved my request for transfer but I was so dissappointed because they deducted more than half million of my payments (and more than half of my payments) towards Marketing Cost and will carry over the remaining balance towards the new property. So now I don't know if I will just try to continue with my payments until I reach the two years period and get the 50% refund other than continue making business with them. My questions are:
1. Since we still don't have copy of the contract that we signed is the contract or purchase of the lot still valid?
2. When is the start of the two years of payments, because I sent the payment to the Fil-Estate Realty last June but it was forwarded to Sta. Lucia after two months I think.
3. Is there any other protection for us here in abroad buying property in the Phils. since we didn't even physically check the lot/property.
I desperately need your advice. Please help. Thanks
Hi Enrico,
I need your advice for house n lot i bought last June 2009 they said i have to pay the down payment within a year so i dried my best to pay them, i finish the total down payment last June 2010 w all papers requirement they need for pag ibig loan , then they start build my house which we agreed on d model house they show to me.And they also said it will be finish 75 days.we have contract sign both parties as per agree upon. Days, weeks, months past by in the middle of Sept.2010 the contractor pull out his worker due to non payment of the developer.So i complain to the developer they again promise i can move in by Jan.2011 so they fast track the house.Feb.2011 another problem came up they said my loan still on process,but still they haven finish my house, again they promise by April 15 i can move in.So i called up Pagibig office to find out my loan they said it was already approved, but the house still not yet been appraised by the pagibig.So i went to the house and i found out some of the materials check list they gave me not yet installed and they said they revised the plan without consulting me.And also i measure the lot it was short of 1 square meter.I was really upset this happen,so i went to the office again and they said while waiting for appraised of pagibig i can move in but i have to pay a rent to them, i answer y? they said that there policy . So decide to pullout, could i refund all payment i made them.They did not follow what we agree upon.I need your advice sir thank you.Roger Cruz
Hello Mary,
If you weren't given a copy of the contract, that means something's already wrong. The 2-year period begins from the time the first installment was paid. If you paid on a certain date, even if the developer received the money 2 months later, it's still considered paid on the date of payment itself unless there's a specific time mentioned in the contract. Regarding protection, you will have to give someone you trust over here a power of attorney to handle your affairs. You will have to specify what powers your attorney-in-fact will carry and what properties are covered by the power of attorney. Hope this helps. Sorry for the late reply.
Hello Roger,
Your case isn't just simply a matter of getting back your refunds. The developer is already in culpa aquiliana because he didn't finish on time, redid the house without consulting you and handed you a lot that is smaller than the agreed size. On top of that, he is saying that he is waiting for the loan when the loan was already approved and wants you to pay rent for your own property! This is already a tort. I suggest you see a lawyer. Something here is very wrong already.
I'm Edwin Tomada. Currently, I am a house and lot unit buyer. I'm currently on my 15th month payment for my downpayment (DP) and already fully paid the 1st-14th month. But recently, I'm having a financial problem and possibly will not be able to sustain the monthly dues. Now, I explain my current situation to my seller, and request instead if possible I will pull out/cancel the contract due to my financial problem. The seller told me that the payments I already made will just turned to be forfeited because I'm not qualified yet for a refund. I need to be in 2yrs payment to be able for me to be qualified for a refund. She said this is according to Maceda Law.
I read the Maceda law and it seems nothing related to it or maybe I just missed to understand the said law.
Please help explain for me understand this law.
Thank you in advance for your time.
Hello Edwin,
Under the Maceda Law you need to have 2 years' payments to entitle you to a refund, which is 50 to 90%, depending on how many years you paid for the lot. The law doesn't say you can get a refund if you paid less than 2 years.
Hope this helps.
Dear Atty.Pozon,]
What can I do so that the developer will issue the notice to cancel the contract so that I can get my 50 percent of my money? It has been five months and their Alibi, their Attorney is out of the country and no one knows when he/she is coming.
Bernie
Hello Bernie,
You must first have paid at least 2 year's worth of installments. Regarding the lawyer, you can actually use his absence to your advantage by paying your monthly installments.
does the maceda law cover parking space? please enlighten me on this. thanks
Hello Cherry,
Parking spaces are considered part of the lot in question, so it depends on what the building there is.
Dear Atty Pozon,
Can I ask who are the person behind Recto law and Maceda law?
hi,
Just like to ask... the developer already issued a notice of delinquency, my payments are as follows: spot dp 20% ; + 7 mos installment for additional 10% for dp at 0% int; + 10 months amort; + 1 advance payment of 400k. my payments already totaled 50%+ of the value of the property but i made these payments in less than 2yrs (18 mos) and this year i was not able to continue my payments due to financial problems. am i qualified for a refund?
thanks
Jeff
Hi atty enrico,
My monthly amortization starts feb 14, 2004,I was able to pay 40 monthly ammortization which is equivalent for 3 years and 4 months.The unpaid installment commence on june 15, 2007 until this date.I receive the notice of cancellation or rescission yesterday so i have 30 days,my question is under maceda law can i refund the 50% of my total payment made without the seller deducting the interest and penalty to the total unpaid amount? tnx
Hello Jeff,
Sorry for the late reply. 4th year law school has turned my schedule topsy-turvy. The good news is you can be refunded, but only up to 50% if the developer wants to cancel the sale. You can only avail of the additional amounts if you paid at least years' worth of installments
Hello Erwin,
Since you have paid for more than 2 years, you can get your refund.
Hi Sir,
Hope you could help me with this,I.m Anthony Rempillo from Muntinlupa, I and my Neighbor bought a house and lot from Prosperity builders inc last June 2010 and paid already around 72k (13 months) The agreement was after one year we can move in,But came June 2011 they said that still under construction and I Haven't yet approve for Pag-Ibig but I submitted all the Docs they need for how many times coz they need an updated info (payslip,COE, etc)Now we decided to request a refund and its almost 2 months when we requested it and they always say that still in the process of approval.Under PRESIDENTIAL DECREE 957 - Right to refund applies when the developer fails to complete the development within the required period. Refund is 100% of total payments less penalty interest. My question is"Is there any LAW regarding the time frame on How long it will take to have the refund? and if in case it will be declined what would be our next step? in terms of Legal action. Please enlighten me with this.Many Thanks
Hello Anthony, sorry for the late reply. 4th year na ako kasi. Regarding your question, if a law doesn't say when the time frame starts (like PD 957 for instance,) we turn to the Civil Code, which provides a default rule: the time to ask for a refund begins the moment you make a demand (written, of course) to the other person. Hope this helps.
Good day po sir. The Maceda law provides in Sec. 3: "Down payments, deposits or options shall be included in the computation of installment payments made." But I cannot understand why the Supreme Court in the case of DELA CRUZ vs. COURT OF APPEALS, G.R. No. 151298 (Nov. 17, 2004) did not take into consideration the P1.5 million down payment of respondents but only the P50,000-installment in computing the total number of installments made. It simply said that since there was only one installment made, Sec. 3 does not apply but instead, Sec. 4. So, how should the P1.5 million down payment be treated then? If this amount of P1.5 million is not included in the computation of total installments made, what then is the significance or use of this the above-quoted provision? If you have time, can you please research on the debates and discussions made by the lawmakers during their deliberation of RA 6552 in order that we may be enlightened on this unfair decision of the Supreme Court. Thank you very much.
Hi Enrico, what are the salient features of the Maceda Law? Thanks!
Hi again, kindly advise me on this. My issue is somewhat related to "Noli's Case". My wife bought a house & lot when she was still single under CitiHomes Developer and the property was loaned at Pag-ibig. She is paying for almost 7 years now. Since we are experiencing financial difficulties at the moment, she is planning to "voluntarily surrender" the property. With regards to the Maceda Law, she is entitled for a 50% refund and 5% for every year. However, when we consulted Pag-ibig, they told us that since the Certificate of Title was already under her name, "she is not entitled to any refunds". Please help me on this matter. Many thanks!!!
Hi Enrico. I bought a property 10 years ago on installment. On the 7th year, I failed to pay my installments and the property was foreclosed by the developer. When I learned about the Maceda Law, I requested the developer to refund me what is due to me as stated in the said law. However, when I received their computation, they said that I can only refund the amount of P92,000+. What I remembered is that I already paid almost P800k before the property was foreclosed. Can you give me an advice how to go over this?
Hi Vash, sorry for the late reply. Your case is actually complicated because the title was already issued. I think The reason why Pag-ibig won't give a refund is because they think the property is already your wife's because of the title. But the Maceda Law doesn't say anything about whether or not the issuance of a title bars a refund. I think you actually can ask for a refund. To be safe, I would suggest surrendering the title to Pag-ibig.
Hello Manuel. Sorry for the late reply. We had a very long final exam period. You're supposed to get a refund of 50% plus 5% per year of payment but only up to a total of 90%. Yes, the developer's computation does look suspicious. I suggest you ask for a recomputation, but have a lawyer make the request in writing.
Hin enrico,
I have only read about these laws today. I have 2 cases:
-House and Lot-
1.The DP for the house and lot I was supposed to purchase was under 1 year-to-pay installment which will become due on December 2011
2.I have paid about 6 months amortization already (about P37,000)
3. On 7 Oct 2011 I WROTE the developer that I would be withdrawing my intent to purchase the property and asked for refund.
Questions:
-Which law will apply to me- the maceda law or recto law? (or neither?)
- how much can I recover from the DP I have paid if any
- what shall i do to get my refund
-Condo-
1.I have paid about P45,000 as Full Reservation Application Fee (FRAF-that’s the term they used in the form I signed) for the condo I was planning to buy. The total DP is about P150,000 due on 13 Oct 2011
2.The Condominium Reservation Form I filled out and signed has the following conditions:
a)if my application would be approved, the FRAF would form part of the DP (it was approved)
b)I have to pay the balance of the P150,000 not later than 13 Oct 2011
c) submit some docs etc.
3) Due to some conditions in their offer which I later discovered, I decided not to pay DP balance on 13 Oct. I would like to withdraw now.
Questions:
-Which law will apply to me- the maceda law or recto law? (or neither?)
- How much can I recover from the P45,000 I have paid if any
- how can i get my refund?
thanks jose
Hi Enrico
Thank God I found your blog.
Hope you can help me with my concern.
I bought a unit from EMPIRE EAST..
I already paid 34 months of the required downpayment plus the reservation fee.
But now I need to cancel the contract because I need the money for a very important reason.
I called the EMPIRE EAST to ask if I can get a refund if ever I cancel the contract, to my dismay, they said that based from the contract I cant get any refund. I told them about the MACEDA LAW, they said that I can use the LAW but it will go to a LEGAL process..
DO you think na may possibility na I cannot get a refund?
Im afraid na If I apply for a cancellation I cannot get anything..
Please enlighten me..
Good Day Enrico,
In regards to my case, I have purchased a unit from Megaworld and payments for almost 3 years, then financial crisis happened in my part that I can't longer pay the monthly payments. Till now Megaworld hasn't issued me a notarized cancellation of sale, I just told them via email that I can't longer to continue on my payments and look for other options on how to save my investment of P907,500.00 before I found out about the Maceda Law I was told by MW accounts specialist that they can do a transfer of credit with a one year to other MW projects for a minimal fee and all I had to do is send a request letter. I sent the request letter over 2 months ago and just yesterday I finally got an email reply from MW that my request was approved over certain conditions. Please see actual email reply of MW below:
Dear Mr. & Mrs Picazo,
Your request for a 1 year credit transfer has been approved with the following conditions:
1) 50% forfeiture of payments and 50% of actual payments to be transferred to new unit
Total Payments: 907,500.00 (subject to verification of Accounts Receivable Dept)
50% Transfer: 453,750.00
2) Signing and notary of Release Waiver and Quit Claim (Please see attached template. For faster transaction, kindly print 3 copies and send original copies to us. Or we can send original copies to your address if you want.) Please pass this document on or before December 20, 2011 so we can effect said request.
Regards,
Gabrielle C. Castillo
Accounts Management Specialist
16F The World Center Bldg.
330 Sen Gil Puyat Ave.
Makati City 1200
Philippines
After reading this and knowing more about Maceda Law I replied back with email:
Gabrielle,
As a Megaworld client I want to schedule a personal meeting with an upper management. I will not agree on a 50% forfeit of payment. Please give a contact number.
------------------------------------------------
Gabrielle,
I will be at your office at 9 am Tuesday, just an fyi I am aware of the Maceda Law and how will it be applied in cases like this and if this is what I am going to get after requesting a credit transfer then I will just request for a 50% refund under the Maceda Law, I can't believe that after dealing with your account specialist KM Liberato and told me and had me believed that a minimal fee will be applied if I request for a credit transfer within a time period, and to be frank with you P453,700.00 is not a minimal fee I also waited for over 2 months just to get a response back after sending my request. Now I am very unhappy and dissatisfied with your company and your services.
------------------------------------------------
this is there reply back to me:
Okay Sir,
If you would like a refund, kindly make a signed request letter containing your request.
I'll see you on Tuesday.
Regards,
Gabrielle C. Castillo
Accounts Management Specialist
16F The World Center Bldg.
330 Sen Gil Puyat Ave.
Makati City 1200
Philippines
------------------------------------------------I will be meeting MW on Tuesday, is there any advice you can give me, also will it be better if have a written request for refund done up by my attorney? Your input will be appreciated.
Hello, Jose. Sorry for the late reply. I'm kinda busy because I'm already in 4th year. Regarding the house and lot, the Maceda Law is controlling because the Recto Law covers personal property. Since you didn't meet the 2-year requirement for paying installments under the Maceda Law, you can't, unfortunately, ask for a refund. What you can ask for is an extension. Regarding the Condo, the Maceda Law also applies, but how for long have you been paying your installments? Under the Maceda Law, you can get your refund only if you paid at least 2 years' worth of installments.
Hello JEC, sorry for the very late reply. Rather busy because I'm in 4th year now. Since you paid 34 months' worth of installments, you already qualify for a refund. The legal process doesn't necessarily mean going to court, but a lot of people get frightened when they hear it mentioned. Every large business is supposed to have a grievance mechanism in case there are problems with clients. Also, going to court isn't the next resort. Under the law, mediation is a cheaper alternative and the courts actually encourage this. The court won't entertain a full-blown trial unless the mediation has broken down.
Hello exomod, really sorry for the late reply since I'm already in 4th year law. I think you did the right thing when you refused to agree to the waiver of the refund.
Hello Enrico! Medyo na confuse lang po ako sa Maceda Law. Is that law only concerns deliquent buyers? In my case po kasi, I religiously paid my condo for 41 months now plus the downpayment, but due to unexpected circumstances, I wont be able to continue the monthly payment. I havent missed any payment yet but I'm planning to just cancel the future payments and opt for a refund instead. Pano po yun? Is the Maceda Law still applicable kahit di naman ako deliquent buyer or meron po bang ibang law regarding refunds to those who decide na di na nila kayang bayaran yung condo units nila like me.
Hi Enrico and all folowers of this helpful blog,
I'm sorry if I bother you and if this form of communication to you is rather intrusive but I am in dire need of a legal advice.
Here is my story. (This is actually almost the same with one of the guys that you have provided answer in the blog – the guy Roger Cruz). My story is that, I have purchased a property from a big real estate company. This happened on 2007. I have paid the 20% DP for the whole 12 months. By 2008 my DP was fully paid and the bank loan for the 80% has been approved and in fact given to the developer early 2008. They have promised that property will be turnover sometime 2008/2009. To cut the story short – it has been 2011 err 2012 and the property has not been turned over yet. I have been bugging them and I have come to the point where I'm so disappointed and pissed off that I tried not to think about them as it is giving me a lot of negative energies. Oh – last year – after I have been emailing them of complaints and demand letter for them to compensate me on the sooooo long delay of the turnover – they said finally said they will compensate me. I have given them a list of what I think I should be compensated me from including the MRI -btw I have been paying for the mortgage since 2008! – the apartment rentals which I shouldn’t be incurring have I moved to the place since the time they have promised that they will deliver, the fire insurance I'm paying for the property that has not been lived in yet. Well, they did not approve everything but they did give me something to compensate. They made me sign a quit claim (sometime Aug 2010) to which I signed with their promised that nov /dec 2010 the unit will be ready. Obviously it was not. May 2011– they finally said that the unit can inspected. And since I am in the US – I have sent a rep to inspect the unit in my behalf. My reps have found some things that needs to be corrected. They took pictures to show me – to shich I told the developer I wont sign the acceptance because of those. A few months have past I have not heard from them until about sept / oct – I did a follow up on them. After so many emails – I have to copy the person whom I met personally during the whole demand /compensation period and she the one who made the ff/up to the turnover group to reply to me. They told me that most of the defects were corrected – they sent pictures but there were only 2 more for fixing. And then come Dec 2011 – I haven’t not heard from them again after so many emails asking for update so I again forwarded my emails to my contact and asked her to personally ff up for me. And here is the fun part – they came back to me today (the turnover group) with this email, I will make kapal my face to attached it (obvious ba na I'm so mad pasensya na po). Basically they are telling me that I have no choice now but to sign the unit acceptance to which I am not comfortable with.
I have been contemplating long time ago to file a legal complain but I know they are a big company and although I know I have very right I'm not sure if I have a good case. I did reply to the email attached though telling them that since they are bringing legal in matters in this I shall consult my lawyer too for proper action. .is there any law that protects me from these kinds of brouhaha? thanks so mch! - CherryB
Hi sir Enrico I am Sandy a pre selling town homes buyer meaning the house is not yet built but the developer already recruited as to pay our desire house and lot area.I'd paid the down payment divided in 3 years but on the eight month i decided to cancell my payments because the agent told us the house will be built after 6 months or less than one year but it is still not being built by the buyer...is the two laws applicable to this matter?or i would like to seek your advise if i could refund all my money deposited if not all less percent of the amount!!!please help me with these issues.Thank You very much and God bless
hello Sir i bought a condo in Mandaluyong it's a pre selling condo and ive been paying for almost 3 years and half for downpayment and i want to cancel the contract. Will the Maceda Law apply to it? I am only paying for the downpayment with no interest.Thank you so much
Hello ablogtoremember,
Yes, it will apply.
Hi Atty,
gusto ko sanang mag consult sayo regarding dun sa binili kong condo if i can apply the MACEDA LAW.
I bought a pre-selling residential condo unit in Mandaluyong last 2008. I've been paying with no default for the past 37 months (3 years and 1 month) and now i decided to cancel it, so i talked to the developer's staff sabi nila sa email ko ganito.
"please be informed that under the Contract to Buy & Sell which you signed with us, withdrawal for any reason whatsoever shall entitle the Company to cancel said Contract. Furthermore, Contract to Buy & Sell provides that upon its cancellation, the Company shall be entitled to forfeit all your payments as liquidated damages."
So sinasabi nila dyan na ma foforfeit yung binayad ko for the past three years. Pero according to Maceda Law may rights ang DEFAULTING BUYER
sabi dito sa REPUBLIC ACT NO. 6552 REALTY INSTALLMENT BUYER PROTECTION ACT
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.
so does it mean na yung pinirmahan kong kontrata sa kanila ay null and void because there is Maceda Law? And meron din kasing mga other clients sila na naka claim na ng 50% refund of what they have paid using Maceda Law. But i just want to ask for you help and insight sana regarding this if i can apply my case using Maceda Law para ma entitled ako sa refund of at least 50%. Kasi medyo heartless ang developer na Empire East of Megaworld, kung hindi mo alam na may batas pa lang ganito, hindi nila ibibigay ang karapatan ng buyers nila. Thanks! hope you can give me advise on this. Thank you
Hi Enrico,
I'm having high hopes that you'd be able to enlighten us regarding our situation. we invested on a house & lot from DDC Land in Sta Rosa City. We explicitly told our account manager back then that we want to begin paying our amortizations only after we complete our equity/downpayments. unfortunately, they still processed my husband's pagibig papers and so he got immediately approved for a housing loan. the problem was, we were renting, paying for the equity & the amortization now.
is DDC allowed to do that despite our verbal agreement to wait for the equity to be fully paid before starting with our pagibig payments?
now, the developer has sent as a rescission of contract to sell (i just received it today). the sad thing is -- we've never enjoyed living in the property! we feel that we've been paying for thin air especially now that the property has been bought back. we've only been paying for over a year of amortization. and worse, pagibig is threatening to blacklist my husband.
what are our rights and what options do we still have left? please help us...
Hello Enrico,
I have a 10 year mortgage and paid 21 months of installments. I also made a down payment of Php 1,206,000. Is my down payment considered additional monthly installmets? Or do I have to pay 3 more months to meet the 50% Maceda Law requirement?
HI SIR
This september 2012 we will starts paying our first monthly ammortization now with mri and fire insurance but still as the promise date of turnover of our condo unit cant be by all means met because it was promise at the end of 2012 , what move can we do , our downpayment is only 24 k
but on the ammort,stage we will be paying 34k +
thank you very much GOD BLESS YOU
Hi I hope by now I can already address you as Atty Pozon. I already paid 2 years of amortization but due to financial problems I defaulted paying my installments. The developer asked me to execute a letter promising to pay in one year which I made hoping I will land a job. This was 2004. Until this time I not able to pay my account. My question: Can I still request for refund even if it has been so many years now invoking the Maceda Law? Is there time limit applying the Mace a Law?
Thanks. ... Bong N
18 Apr 12
Dear Atty,
Atty, want to hear your advice on our situation, actually i posted this last Monday 16 Apr'12, but when I open your blog to verify your reply, my whole story was disappeared,don't know why. This is my situation: Year 2007 we bought 2 lots at Mt House Subd.,Brgy Irisan, Baguio City at pre-selling price 2yrs to pay with zero interest under BI Centennial as Developer. Before the signing of contract the marketing of BI Centennial at Easwood, QC told us that their Subd's development.,(Mt. House) will be finished within 2 yrs. So in other words, we religiously paid the 2yrs monthly amortization. But when we pay the last 60k as our full and last payment they (BI Centennial) did not accept for the reasons that they have to accept it only when the title will be ready for issuance. But 2 yrs of their promised had passed, until today 2012 when I visit the area the progress of development was too slow which disappoint us it almost 5 yrs after we signed the contract to sell. Now we decided to pull out our money. Atty, may we know what law we'll be used as reference in our claims? tnx a lot
18 April 2012
Atty,
We really need your advice or reply on our situation. Atty, pls thanks again - pinoy tagabantay -
Hi Attny,Libra Please give an advice. My apartment has been forclose because of the sickness of my husband default for over a year I already paid the bank 3 yrs if I had enough money I pay more to cover-up but still i cant update coz of unavoidable circumstances I approach our bank they said they want me to paid in full but I cant afford it my property is more far than my loan.And my 15yrs abroad I invest so that we have our resources I want to save it What would I do, Im very willing to compromise but not to extent killing us to pay. Thanks
Atty. Pozon: I would like to ask if, under the Maceda Law, the 50% refund entitlement would mean a full 50% refund or does the developer have the right to exercise demand for payment on penalties and unpaid amortizations? Thanks. I desperately need your advice.
Hi Atty. We bought a condo unit under DMCI homes in 2006. DMCI experienced some migration system error early 2010 and our account was one of those who got affected. It lead us to become behind our monthly amortizations. July 5, 2010 we rec'd a letter demanding us to settle our dues within 60 days. We weren't able to pay. I was telling them to waive the penalties on those said months our checks weren't deposited due to said system error. Clearly it wasn't our fault and yet they penalized us.They did not settle this matter. I did not make payment from then anymore. Our hands were tied too because we are here in the US. All along I thought DMCI have cancelled our contract already, basing it on the demand letter they sent me. Only to find out that they have just cancelled it last yr in October. Clearly, we are entitled of the 50% refund but because they just barely cancelled our contract it would not be as much if they cancelled it in 2010. I've been trying to call their customer service and legal department but nobody seem to know what to do. Legal department says to call customer care and vice versa. All they can tell me is to just get the refund already. But how about my concerns? It was not our fault getting behind payments in the first place and why are they barely cancelling our contract? Emails to them have been sent but no reply. Is there a way to speed things up regarding this? Do I have a ground to complain why they didnt cancel our contract right away where it was clearly stated in the letter that they will cancel if not settled within 60 days. Please tell me the steps to take. I have given my aunt over there a SPA so she can speak in my behalf. Pls, Atty, tell me what to do. I am getting frustrated of getting bounced back and forth.
Hello lovecantos,
A basic rule in law is that although a contract operates as the law between the parties, the contract can't be made in such a way that it can violate the law. So yes, you can question the developer
Hello Elena,
Sorry for the late reply. When did you enter into this contract with DDC?
Hello Robert,
Sorry for the late reply. When the law says "installments," it means "installments" so the downpayment isn't included.
Hello Atong,
Sorry for the late reply. You can inquire into what is causing the delays. If they fail to give a satisfactory answer, you can have the contract rescinded. But you must remember that since you didn't pay at least 2 year's worth of installments, you can't get a refund.
Hello Robert,
Sorry for the late reply. Yes, you have to complete the 2-year requirement (as in 24 months) in order to qualify for a refund.
Hello Pinoy Tagbantay,
Sorry for the late reply. The developer seems to be trying to avoid paying the refund under the Maceda Law. The delays are tantamount to committing a tort. You consequently can actually demand that they complete the construction (and if the courts will allow it, ask for damages.)
Hello drscribe,
Sorry for the late reply. The 50% refund refers to the actual amounts paid.
Hello Ma. Arrilu,
Sorry for the late reply. Your problem isn't under the Maceda Law. I'm not a CPA so I can't advise you exactly on how to go about this. If you and the bank can enter into a debt-restructuring agreement, that might help.
Hello Zwave27,
Sorry for the late reply.
Yes, you already have ground to complain. The fault lies with DMCI. There is also a negligence issue here because DMCI didn't correct its systems error. You may have to approach a lawyer now.
Atty, is there prescription period to apply the maceda law. - Bong N.
hi. Is Maceda Law applicable to all financing type? In case of voluntary cancellation, is the buyer entitled to refund if payment is 2yrs already? Is it also subject to standard deductions? thank you.
Is it true that in networking, if you gave your money to them and one of their employees encoded your account without your permission that you can no longer get the refund? I'm still a student and I paid 9800 for this which took me about 2 years to save. I've been to their office for about three times now and they always answer me with "This is not our responsibility, you should go talk to the one who recruited you about this matter" I got my receipt back from the one who recruited me, I just can't understand why I can't get my money back because they said my name is already encoded, BUT they said I can recruit someone else to replace my position considering that I will pay 300 pesos so that I can transfer my account and change it's name. HELP :( What law is against this? And what will I tell them? The fare is very expensive and I can't afford to go there anymore and just listen to them telling me that I can no longer get refund on this.
hi! I bought a lot 2009 in one of the new development subd of LAND CO REALTY? and fully paid last 2010.they give me copy of title.But until now my True copy is still under process.they said its still in the bir etc etc.Right now Im planning refund what I paid because Im tired to wait until next year.Is it possible to refund?and who I should about my case? pls help.thanks!
Hello Po, ask lng po ng advise regarding my problem. siguro nman po nabalitaan nyo ang kaso ni Delfin Lee (Globe Asiatique). Ang problema po kasi 29 mos na kaming nkabayad including yung sa dowmpayment. tpos since nagkaproblema ang Globe Asiatique, nagstop payment muna kami. tpos last 3 weeks ago nakareceived na kami ng letter for cancellation of contract. we decided nlng na give up yung unit since alam nmen na makakreceive kami ng at leat 50% kasi cover ng maceda law... pero ang sabi ng GA hindi daw cover ng maceda law kasi magstart ang 2yrs nung naturn over yung bahay. ang tawag nila ay Interest Bearing daw... tama po ba yun? ano po ba ang dapat nmen gawin? salamat po...
Kasama po ba ang dowmpayment sa counting ng 24mos sa maceda law? for exp. 10mos to pay and downpayment, tpos naka 18mos ka ng payment after ng downpayment. possible ba ang refund? thanks!
Hello Bong N.
Sorry for the late reply. There is no mention of a specific prescriptive period in the Maceda Law, so the Civil Code's rules on prescription apply.
Hello Sheila,
to all your questions: Yes.
Hello Alexis,
My advice to you is to leave networking to those people who have a lot of money. I used to be in network marketing and it's not easy to make money in it.
When you were recruited, did you sign anything? And how much did they ask you to pay?
Hello Mayonaise06,
The Maceda Law doesn't apply anymore because the contract was fully paid for. What you should do now is make a notarial demand that the developer hand over the title to you.
Hello Paul,
Yes I know about the GA scandal. The downpayment is part of the purchase price pero hindi kasama ng installment payments. Iba yun.
Good news para sa 'yo, you can get your refund kasi ang Maceda Law nagsabi ng 2 years' installments. Period. Wala siyang qualifications ng trunover, etc. Sabi lang ng Maceda Law na at least 2 years' installments lang.
Hi Enrico,
Thank you so much for your blog. I also have similar cases as what I have read above. My case is that I purchased a condo unit from L.I.K.A.S in sta mesa manila, with total contract price: 1,052,000. I paid downpayment(10thou), completed 24 months equity of 8521 each month, and additional 100thou so a total of P314,000. I submitted all the requirements. But before they submitted this to bank for loan approval, I decided not to continue purchasing. Based on above scenarios I'm entitled to Maceda Law,but can I get the whole amount I paid(P314,000), or if not, can I settle this with the seller so that I can get the whole amount and not only 50%? Or is there any other way I can get the more than 50% like asking the agent to find another buyer? I hope you can help me, as I'm going to send tomorow my letter of requrest to cancel my purchase to their finance dept. God bless you! - John
Good Day Sir, i would like to ask po sana if ever na nagpasa na po ako sa developer ng request for a refund then nareceive naman po nila actually March 9, 2012 ko pinareceived ang tanong ko po talaga po bang matagal ang pag re refund? Second, pag nag fo follow-up po ako ang sinasabi po nila antay antay lang daw po kasi dapat daw pong may bumili muna ng lot na kinuha ko. Thank you po
Hi Good Day Sir,
Gusto ko po i-inquire ang tungkol sa Maceda Law. Meron po kasi akong residential lot na binabayaran sa isang developer (tapos ko na po ang 1 yr na downpayment and 2 years na amortization) I am on my 3rd amortization year pero hindi ko na po kayang ituloy. In my understanding, qualified po ako. Ano po ba ang unang hakbang na gagawin ko para makuha ko ang refund? May mga hearing din po ba ang ganitong situation? Are the sellers given a certain leadtime to give our refund? I am worried na baka sadya nilang tagalan ang proseso nila.
Maraming salamat po.
Hello turvan gross,
What the Maceda Law allows you to recover is 50% of the amount you paid plus an additional 5% per year after the first 2 years but you can only recover up to 90%. If you want, you can sell the unit to someone else after it's been delivered to you.
Hello Emma,
I think kailangan ka mag-execute ng notarial demand kasi based sa comment mo, ba't maghanap sila ng ibang buyer? Feeling ko they're delaying. Go to an attorney and have him exectue a notarial demand. Kung gusto mo, punta ka sa Public Attorney's Office kasi libre ang kanilang services.
Hello Jefferson,
The first thing you have to do is to inform the developer of your inability to continue paying. Since you've paid 3 years' worth, you're now entitled to a 55% refund of the amount you paid. If the developer refuses -or delays- you can make a notarial demand; this demand, however, must be made only if the developer doesn't act on your complaint or delays.
hope this helps.
Hello sir,
Sir pwede po bang paki enlighten kmi about maceda law. Kumuha po kami ng house and lot on installment basis within 7 years. Issue po is nag back-out kmi due to financial problem. We're trying to refund the 50% na naihulog na po namin. Ang sabi po ng developer is that the interest is not included in the money that can be refunded only are the principal and the down payment. We need your advice before we proceed to the court if we have the chance to win this case.
Salamat po.
Anthony
Sir ask ko lqng po may binibili po akong property sa state land nalabauad na po ako religously for almost 8 months amounting to 700k due finacial problem nag requedt pp ako sa developer ng refund sa lahat ng binayad ko it wa almost a month na ang lumipas since i ask for refund then wala po ako ma tangap sa kanila ng concrete answer then nung nakausap ko yung agent ko sabi niya na forfieted nga daw lahat ng binayad ko even pano namn po yung binayad ko . I realy need your help
Hi Sir Enrico, would like to clarify regarding technicality of the "at least two (2) years' installment" for me to qualify a 50% refund. Does this include the date when my reservation fee was registered in my seller's database?
Good day sir, Asking for your help, my terms of payment for my lot was restructured due to my financial problem so half po ng binayad ko already forfeited. until I decided po na irefund na lang but according to them they still need to deduct the penalties and expired interest from the remaining unforfeited amount. I paid almost 85% of the lot cost. I need your opinion here sir. thank you
Hi sir, ang case ko po ay almost the same ng nsa itaas .. Paid 24 months dp with sm condo and decided to cancel.. I am overseas i did not receive any contract to sell. Now they send me copy of deed of cancellation stating that no refund will be given. Can my husband who is in the philippines do the work for me. Like the notarized request to cancel and demand for a refund?Do i need to execute a SPA for him to all the necessary transaction on my behalf?i received the deed of cancellation december 24th and they are requesting it to be returned within 15 days. I did not sign it thou. Will it affect the cancellation and refund if i did not sign and returned it to them within the said period? Hope you can enlighten me in this thanks.
Hi Enrico,
I am very desperate of my case. I bought a commercial lot sometime in July 2009. I've been payong monthly regularly for php16,000 until Jan 2011 and become delinquent from Feb to July 2011. However, in August 2011, i have paid php500,000 and having a remaining balance of Php65,400. And because I was being promised to receive a rebate and discount I did not fully pay the balance.
Unfortunately, the next payment was again made in Jan 2012, June 2012,Oct 2012. When we inquired the latest balance in Dec 2012, a big surprise when the current balance has increased incredibly. Then to realize from the statment that 12% VAT was added into my account. The developer has pass on to me the VAT without our knowledge and consent. But the said VAT was not stipulated in the contract. At the end I have paid the balance in full without consideirng the 12% vat. The developer insists not to issue the deed of sale as they insists to pay first the VAT otherwise they will forfeit the purchase of lot.
My questions are:
1. Can the developer forfeit the lot if we become deliquent for several months?
2. After becoming deliqunet and they still accept my payment I should then be back as active payer? They insists that my lot has been forfieted a long time ago in 2011 yet they have accept the next payment of USD500K? is it possible?
3. should i be liabe for the 12% vat where it is not stipulated in the contract at the beginning. I would understand that when the lot was sold to me VAT should included be considred in the selling price. so I am really liable for it?
4. Can the developer refuse to give the deed of sale?
5. when the lot was sold to us at the beginning, the lot plan was catgorized as commercial and the rate was also for commercial but I recently realized that the contract did not specify a purchase of as a commercial lotbut instead just a purchae of lot. so it really a commercial lot? so there is no issue of VAT?
Thanks in advance.
Vida
Enrico, I am so happy you are from Cagayan de Oro. taga ato diay ka. tabangi ko palihog.
unsay akong next step. nag palit ko ug condo sa Megaworld 2 years naku nagbayad. some circumtances happened, amo gi cancel. amo na gipadala ang cancellation letter. I want my Macedal Law REfund. Unsay sundo nakong buhaton? naa kay maayo nga lawyer imong maka refer? salamat kaayo! Cher
Please enlighten me with regards to the Maceda Law. Here is my case:
I signed up for a 15 years to pay contract with Empire East for a condo unit. I paid for the down payment and the monthly amortization from Sept. 2005 until December 2011. But due to some financial problems, last January 2012, I sent an email informing them that I can no longer pay the monthly amortization and I am requesting for the cancellation of the contract and release the rest of the post dated checks issued. They asked for some documents needed to authenticate my request and I sent it through email last Feb. 2013. I have not heard anything from them up to this time regarding the status of my request. Then last August 2012, I got an email from their collection department for an OVERDUE BALANCE. And another email last October 2012 for the AMNESTY PROGRAM on which they will waive all the penalties for late payments.
Based on our contract, it says "all payments made will be forfeited":
with my situation, am I entitled for a refund though I requested to cancel the contract? and I stopped paying since I requested for the cancellation of contract last January 2012 up to the present. I paid for 6 years & 4 months, from Sept. 2010 to Dec. 2011.
I hope you can enlighten me with the above situation. Thank you in advance. D&G
Hello Atty. Enrico.
May I seek your advice regarding a case about Maceda Law. What if the duration of the contract entered by a buyer and seller is 2 years or less then the buyer defaulted his payment say at his 10th monthly payment. What will be the probable ruling on this one?I've read the provisions of Maceda Law but it seems that it is not applicable on this case because of the term of the contract. Kindly enlighten me on this one please.
Hello Cher, Sorry for the VERY late reply. Sobra na ko ka busy. Maghimo ka ug notarial demand.
Hello Jefferson,
Sorry for the very late reply. I'm kinda floored right now. It means you paid a minimum of 2 years' worth of installments as well as your reservation fee. Hope this helps.
Hello, D&G,
Sorry for the very late reply. I'm so busy lately. Yes, you are entitled to a refund. Approach a lawyer and get him to execute a notarial demand.
Hello Vida,
Sorry for the very late reply. First of all, VAT applies to the sale of residential units by a developer. It's in the law. However, the developer can't forfeit the lot simply because you didn't pay the VAT -and he also can't refuse to give you the deed of sale. They're just trying to make you pay. If you became delinquent for a while but started paying again, that means you're not delinquent anymore. Finally, since you've been paying since 2009, you can get a refund; you need to go to a lawyer
Hello Steven Plan,
Sorry for the late reply. Can you give me the details of your problem?
Hello Atty.Enrico,
Thank you for your reply. Is the Maceda Law applicable to new properties only? or even for properties that has been used/tenanted?
Thank you so much in advance.
D&G
sir ask ko lang po after po makarecieve ako ng notice of cancellation nag apply po ako ng refund under maceda law sa pag ibig fund.. pero ang sagot po sa akin ng asst department manager na si Haydee C. Lim at ni Divina Bulan ng final remediation task force sa oag ibig ay ito " ang opinyon daw po ng department ng legal ng pag ibig , ANG PAG IBIG FUND ay hindi raw po saklaw ng Republic Act 6552 Maceda Law". Totoo po ba ito? Wala po ba kaming karapatan sa mga naihulog na namin na makarefund man lang?
Ginawa po ba ang batas na un for private sector lang at di para sa goverment .. na tulad kong maliit lang ang kinikita at nais makapagrefund sa naihulog na sa bahay an nacancelled na sa dahilang di na nahuhulugan magugulat ka na lang sabihin ng pag ibig na ang pag -ibig fund ay di saklaw ng maceda law
Atty..Please help po. After po makaresive ako ng "notice of cancellation ng contract to sell " for the property and i have no right to hold the property and need to evacuate it, ay nag file po agad ako ng request for refund under the Maceda law ng naihulog ko na sa bahay last September thru letter at email pa po. Every week po nag pa follow-up ako sa kanila at marami pong group ng offices nila ang dinaanan ng papers ko. Until sa last po sa Final remediation remediation ay nag respond po sila na sinasabing Ang kanilang Legal Department daw po ng PAG-IBIg ay nagsasabing ANG PAG_IBIG FUND ay hindi saklaw ng Republic Act No. 6552 (MACEDA Law). TOTOO PO BA ? HINDI PO BA SAKLAW NG MACEDA RA 6552 ANG PAG IBIG FUND ? Wala po ba kong karapatang magrefund?
hi I bought a condo unit and paid 26 months already but Im planning to have it forefeited due to finance problems. My payment term is 20% payable in 30 months with with 2 initial downpayments of 25k for the first 2 installments and 80% balance payable at turnover but i added and reserved a parking slot along the way so the final amount paid is 15%. Are all my payments applicable for the 50% refund under maceda law? Is maceda law applicable only if a certain minimum percentage of the tcp has been paid? Or is it only based on the number of months paid as criteria? Thanks in advance.
HI, may i seek ur legal advice. I bought ten shares of a medical center for a total amount of P300,000 payable over 24 months. I have already paid P93,000. I decided not to continue so i informed the hospital and requested for a full refund of my payments todate. They said yes but as per the contract to sell i have signed only 50% will be refunded as they have incurred expenses like processing and commission of the agent. do they have a legal right to do this becuase the contract says so? is this not tantamount to confiscation of personal property? I have in effect fully paid the equivalent of three shares. Do i have a valid cause of action to take them to court?
I just want to clarify if the installments applies to bank and developer as 1 entity?I paid total of 38mos. 19mos from developer and 19mos to bank. Can i ask for refund or should it be 24 mos bank or 24mos developer to get the refund? In short, Doesnt matter who you paid the installments, what matters is that you paid total of at least 24mos to get refund?
..hi atty..im imelda and i hope possible pa mg.inquire regarding maceda law. I purchase a lot in Eton and was able to pay 20%dp to Eton direct within 18months + reservation fee. Then it was handle in bank financing in Metrobank. I've been paying to Metrobank for almost 15months then got financial problem ndi ko na nacontinue ung payment and the lot was buyback by the bank. Nag.unquire ako for a 50% refund under maceda law sa Eton but they said na 18months lang daw ang nabayaran ko sa kanila. Hindi po ba included sa counting yung binayad sa bank financing? Please enlighten me kasi seems unfair kapag ganun.
Thank you.
..hi atty..im imelda and i hope possible pa mg.inquire regarding maceda law. I purchase a lot in Eton and was able to pay 20%dp to Eton direct within 18months + reservation fee. Then it was handle in bank financing in Metrobank. I've been paying to Metrobank for almost 15months then got financial problem ndi ko na nacontinue ung payment and the lot was buyback by the bank. Nag.unquire ako for a 50% refund under maceda law sa Eton but they said na 18months lang daw ang nabayaran ko sa kanila. Hindi po ba included sa counting yung binayad sa bank financing? Please enlighten me kasi seems unfair kapag ganun.
Thank you.
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Can penalty, marketing cost, admin cost, and refundable security deposit be deducted from my 50% cash surrender value under the maceda law when I've paid for 4 years
Can penalty, marketing cost, admin cost, and refundable security deposit be deducted from my 50% cash surrender value under the maceda law when I've paid for 4 years
Hi Atty. Enrico, please enlighten me, you replied below:
September 20, 2012 at 7:47 PM
Enrico said...
Hello Jefferson,
The first thing you have to do is to inform the developer of your inability to continue paying. Since you've paid 3 years' worth, you're now entitled to a 55% refund of the amount you paid. If the developer refuses -or delays- you can make a notarial demand; this demand, however, must be made only if the developer doesn't act on your complaint or delays.
My question: The 5% starts after the 2nd year of amortization? How about this, according to the Maceda Law:
(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 percent of the total payments made and, after five years of installments, an additional five per cent every year but not to exceed ninety percent of the total payments made..."
My question is, is it after 5 years of installments? or after 2 years? just what you have replied to Mr. Jefferson? Please enlighten my case:
I paid my monthly installments for 4 years, up to 2013. But cannot continue, I want my money back, am I right with my computation - if I paid P800K, I can get a 50% refund plus 5% per year or total of around P560K?
or how is the 5% per year computed? is this only applicable in 5 year installments?
Hi Atty.Enrico! A month ago, we were asked to made a reservation fee of 150,000. 3 days after that we encountered financial problem that's why we decided not to cancel it. I would like to know if we can get a refund at least half of the amount paid. TYI
Hi Atty.Enrico! A month ago, we were asked to made a reservation fee of 150,000. 3 days after that we encountered financial problem that's why we decided not to cancel it. I would like to know if we can get a refund at least half of the amount paid. TYI
Hi po Atty,
This is Pius. Thank you po for this article. Tanong ko lang po ang condotel po ba ay under condominium or commercial? My friends told me na ma covered po sya under maceda law dahil condo po ito. Paki verify naman po.
And example if nagbayad ako ng amort from April 2014 to Jan 2016; at pinacancel ko ibig sabihin wala akong makukuha from my payments?
Ano po ang need kong gawin? Today is May 2016, tama po ba na bayaran ko ang Feb 2016 to April 2016 para ma covered sya under Maceda Law at makuha ko ang 50% ng payments ko? salamat po.
Hello Pius. I'm not an attorney yet. Just finished the Bar exam and it looks like I'll be taking it again.
A condotel is not a residential property. It's a hotel designed to look like a condominium. It's commercial and doesn't fall under the Maceda Law.
Good day!!!
Inquire ko lang po. Tanong ko lang po ano po ba talaga ang basis ng computation ng refund. kasi nakakuha ako ng unit sa urban housing development corporation. Pero nagpacancel na ako due to financial difficulties, pero ng dumating ang computation eh pati yung unpaid months ay isinama sa computation then kinuha ang 50% the sa grand total binawas din ang unpaid months. so lumalabas nasa 30 percent na lang ng total payment I made ang marerefund ko. tama po ba ito sa application ng law? salamat!
Hi Sir,.. Good Day po, I hope matulongan nyo po ako regarding sa appartment po n hinuhulugan ko po, actually Pre-Selling po sya and almost 1 yr and 5months ko n po binayaran yung DP (20%) monthly installment basis.,but ng nakita ko po sa HLURD.GOV n website (COVENT GARDEN STA. MESA EMPIRE EAST LAND HOLDINGS, INC. Sta. Mesa, Manila CDO 4/12/2016 NO CR-LS)SUSPENDED OR REVOKED LICENSE TO SELL. ..nagbabayad po ako from Feb 2015 until now po..Please advice me po if pwide ko pang marefund yung mga binayad ko po.. Thanks you and God bless.
Sir, tama ba na ideduct ang marketing expenses, deposit, admin charges operating expenses sa payments naming before yung computation ng 50% sa Maceda law?gusto po kasi naming makuha yun 50% ng total payments nmin, kaya lng ang sabi ng camella, yun daw ang practice nila. Ano pong magagawa nmin?
Hello Sir Enrico, yung unit ko sa smdc pina-cancel ko nung matapos ang hulugang deposit (20% of total amount). Siempre hindi na rin ako nag-apply ng bank loan dahil sa cancellation plans ko.
Now, approved na ang cancellation kaso wala silang refund na ibinigay. Ano po ba ang ma-advice ninyo sa refund ko sa pera? Thanks and God bless.
Hello Sir Enrico, yung unit ko sa smdc pina-cancel ko nung matapos ang hulugang deposit (20% of total amount). Siempre hindi na rin ako nag-apply ng bank loan dahil sa cancellation plans ko.
Now, approved na ang cancellation kaso wala silang refund na ibinigay. Ano po ba ang ma-advice ninyo sa refund ko sa pera? Thanks and God bless.
Hi, Please help me. I'm an OFW bumili po ako ng isang condo unit sa isang malaking developer sa pinas under circumtances nagdecide akong i-withdraw ung unit ko and I informed ung developer na i-cacancel ko na... I have fully paid ung down payment (2 years) around 200k pero ung ibibigay lang na refund sakin ng developer is 23% (half amount lang ng total payment ko less marketing expenses) at nagrerequest ako ng computation unfortunately, hindi nila mabibigay.
1. Please advise if Maceda law is apply in my situation.
2. Please advise kung anu ang pwedeng ilagay ko sa letter for reconsideration of refund with legal impact po sana.
Hello po Sir Enrico...Inquire lang po ako regarding dun po sa nabili kong house. Actually ang contract po nya is 5 years, I paid po ung downpayment in full. Nakamiss po ako ng mortgage ko dun sa ika-19th payment ko po due to suspected phishing nung BDO website which I informed them naman tapos nagkaron na po ako ng penalty even just for a day lang po. Ang question ko po applied din po ba sa case ko ung Maceda Law na pwede ko po gamitin na dapat wala ng penalty un...
Thank you so much po in advance...
Regina
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Hello sir,
How about if you bought a motorcycle in installment to be for three years. Then you already paid the installment for more than two years and the motorcycle unit was carnapped. Then Immediately you report the matter the anti carnapping unit and was able to get a cctv footaged of the incident. Thereafter you give a copy of the police report and all related documents to the dealer where you bought the motorcycle unit. Will the mortgagee bank still collects the installment patent despite the fact that the motorcycle unit has already been lost?
Hello sir,
How about if you bought a motorcycle in installment to be for three years. Then you already paid the installment for more than two years and the motorcycle unit was carnapped. Then Immediately you report the matter the anti carnapping unit and was able to get a cctv footaged of the incident. Thereafter you give a copy of the police report and all related documents to the dealer where you bought the motorcycle unit. Will the mortgagee bank still collects the installment patent despite the fact that the motorcycle unit has already been lost?
Hi, ask ko lng po about our case this is regarding our pagibig housing loan last 2002..we already use a restructuring program also..but since ngka financial problm na nmn kami kse ngkskit father ko ng ddialysis sya until mamatay n nga kya ngkaprob kami sa pagbayad ng monthly amot..until mgsend sila ng notice of a ncancellation..last january 2018..kse last payment nmin is june 2017 tpos feb 2019 nag pdla nlng sila ng lettef n nsa aquired asset n ung bahay nmin...ang tagal n nmin ngbbyad sa pagibig 2002 plang...a uctually pagkakaalam ko po prang 4yrs to 5yrs nlng at matatapos n kami...pero ngyn aquired asset n ni pagibig..ayaw n nila tngapin ung byad nmin to settle sana ung unpaid amort..d n daw pwede kse nsa aquired asset na at back to zero n ulit...naloan nmim bahay nsa 500k plus lng...pingwa na nmin bahay tpos nyn from 500k bebenta samin na 1.2 million n kse napagawa na daw nmin ung bahay...grabe nmn..ilang yrs nlng dpatat mttpos na nmin..nghntay lng kami mkuha ung burial benefits n father sa owwa pra mgbyad at sss benfits ni mama pra pagsamahin..ayaw n tngapin...may habol pa po kaya kami sa ase nmin...may option sila bngay..80k a month for 1yr or ung long term na 30yrs ulit na 1million n halaga ngyn..na niloan lang nmin sa knila ng 500k kse ung iba bnyran nmin sa developer kse 500k lng na approve sa pagibig dti..please help po...pls email me at abhie_permejo@yahoo.com.ph
Hi Ms. Abhie, I saw your post sa isang blog about Maceda Law tungkol sa property nyo na na-acquired na ng PAGIBIG. Gaya po ng nabasa ko sa post ni Sir Enrico you are entitled sa refund na 50% + 5% every year upto 90% dahil lagpas na din kayo ng 5 years.
Di po ako attorney, Property Specialist lang po na nagbabasa lang din.
Hi po, may I ask what would be the available remedy of the seller in case the buyer of movable property(installment) fails to pay 1 installment?
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