The Maceda Law and the Recto Law are not the same.

Both laws, however, govern the sale of property

on installment basis.

The following are their distinctions:

The Recto Law, which forms part of the Civil Code, specifically Article 1484 to Article 1486, covers sales
of personal property on installment basis while the Maceda Law is a special law, particularly Republic
Act (RA) 6552 or the Realty Installment Buyer Act, that governs installment sales of real property.

The recto law provides for remedies in case the buyer fails to pay.

“Article 1484. In a contract of sale of personal property, the price of which is payable in installments, the
vendor may exercise any of the following remedies:

a. Exact fulfillment of the obligation, should the vendee fail to pay;

b. Cancel the sale, should the vendee’s failure to pay cover two or more installments;
c. Foreclose the chattel mortgage on the thing sold, if one has been constituted, should the
vendee’s failure to pay cover two or more installments. In this case, he shall have no further
action against the purchaser to recover any unpaid balance of the price. Any agreement to the
contrary shall be void (1454-A-a)” (Civil Code of the Philippines).

On the other hand, RA 6552 or the Realty Installment Buyer Act, also known as the Maceda Law, is the
real estate equivalent of the Recto Law. Under Section 3, it only applies to residential real estate, as it
excludes other real estates, such as, industrial lots, commercial buildings [and/or commercial lots by
implication] and sale to tenants under agrarian laws. Moreover, Section 2 of this law provides that it was
enacted to protect buyers of real estate on installment payments against onerous and oppressive
conditions.

“Section 2. It is hereby declared a public policy to protect buyers of real estate on installment payments
against onerous and oppressive conditions.

Section 3. In all transactions or contracts involving the sale or financing of real estate on installment
payments, including residential condominium apartments but excluding industrial lots, commercial
buildings and sales to tenants under Republic Act Numbered Thirty-eight hundred forty-four, as
amended by Republic Act Numbered Sixty-three hundred eighty-nine, where the buyer has paid at least
two years of installments, the buyer is entitled to the following rights in case he defaults in the payment
of succeeding installments: xxx”