Dear PAO,
I have been paying for three years for a house and lot
in a subdivision located in the Bicol Region. I am supposed to complete
payment two years from now. Unfortunately, the developer contacted us to
inform that the subdivision project was recalled and it shall refund
the money we have paid. We called the developer’s main office to fix the
refund but they are giving us a hard time. Finally, the accounting
department confirmed to us that we can only refund half of what we paid
citing the Maceda Law. I believe that this is unfair since there is no
fault on our part.
Mr. Cinco
Dear Mr. Cinco,
The Maceda
Law or Republic Act (R.A.) No. 6552 otherwise known as “Realty
Installment Buyer Protection Act” affords buyers on installment on the
sale of real estate properties including residential condominium
apartments certain rights where they have defaulted in the payment of
succeeding installments. The buyer’s rights under the law include, among
others: 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 total 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.
Accordingly,
a buyer shall be entitled to refund in case his contract with the
seller of the real estate property is cancelled. However, the said
provision of R.A. No. 6552 shall be applicable only in case the buyer
has made defaults in his succeeding payments. In your situation, the
said law cannot be applicable in the cancellation of the developer of
the contract involving the sale of a house and lot in a subdivision
located in the Bicol region since the same was cancelled not because you
defaulted in the payment of your installments. Indeed, the reason for
the said cancellation, according to you, was the recall of the
subdivision project. Thus, the failure on the part of the developer
entitles you, among others, to rescind the contract with payment of
damages (Article 1191, Civil Code). You may first send a demand letter
to the developer to inform them of your demand. Thereafter, you may file
a case in court when the developer refused to give in with your demand.
You may also inquire with the Housing and Land Use Regulatory Board
(HLURB) for administrative liability of the said developer in its
failure to comply with its obligation.
We hope that we were able
to answer your queries. Please be reminded that this advice is based
solely on the facts you have narrated and our appreciation of the same.
Our opinion may vary when other facts are changed or elaborated.
source: Manila Times' Column of Atty Persida Acosta
No comments:
Post a Comment