1. What is the difference between Recto Law and Maceda Law?

The Recto Law which forms part of the Civil Code, specifically Article 1484 to Article 1486 is a
law that governs the application of installment sales of personal property. Recto Law’s main
purpose is to prevent potential abuses by the seller in the event that the buyer is unable to
make further installments for a property. According to the Civil Code of the Philippines, this
law allows the vendor to exercise the following remedies in case the buyer fails to pay: (1)
Exact fulfillment of the obligation, should the vendee fail to pay; (2) Cancel the sale, should
the vendee’s failure to pay cover two or more installments; (3) 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. On the
other hand, RA 6552 or the Realty Installment Buyer Act, also known as the Maceda Law is a
special law that governs the application of installment sales of personal property but it
contemplates residential properties in particular. Maceda Law also requires certain requisites
before a purchaser of real property can benefit from its provisions. It also allows the buyer to
exercise his rights in case he defaults in the payment of succeeding installments 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, provided
that he has paid at least two years of installment : (1) Pay without interest the balance within
the grace period of one month for every year of installment payment (The grace period,
however, shall be exercised once every five years); or (2) In case the contract is cancelled, the
buyer shall be entitled to 50 percent of what he has paid plus another five percent for every
year but not exceeding 90 percent of payments made.