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Commonly known as the “Maceda Law.” It is embodied in R.A. 6552 which provides
for certain protection to particular buyers of real estate payable on installments. The
law declares as "public policy to protect buyers of real estate on installment
payments against onerous and oppressive conditions.
Note: The purpose of the law is to protect buyers in installment against oppressive
conditions.
What are the transactions/sale covered by the Maceda Law?
The law involves the sale of immovables on installment (Maceda Law, R.A. 6552).
2. Exclude:
a. Industrial lots
b. Commercial buildings (and commercial lots by implication)
c. Sale to tenants under agrarian laws
a. Pay without interest the balance within grace period of 1 month for every year
of installment payment. Grace period to be exercised once every 5 years.
Note: Cancellation to be effected 30 days from notice & upon payment of cash
surrender value.
Note: buyer can still pay w/in the 30 days period with interest