However, if there’s still less than 2 years of installment payments made, the buyer is

only entitled to 60 days grace period as indicated in Section 4. More importantly, there
is a section in the Maceda Law that protects the buyers from the fine prints of contracts
imposed by the contractors or developers. These fines prints are oftentimes neglected
by the buyers to review during the contract signing. Section 7 of the Maceda Law states
that:

…Any stipulation in any contract hereafter entered into contrary to the provisions of
Sections 3,4,5, and 6 shall be null and void.

This section emphasizes the overriding power of the Maceda Law against the contract
made by the developer and the buyer. FREQUENTLY ASKED QUESTIONS

The following questions have been commonly asked by our readers: •

QUESTIONS:

1. Does it apply when I’ve been paying to the bank already? A common practice
today is for the developers to require only the equity to be paid in installments.
This equity or also called “down payment”, varies from 10% to 50% (usually 20%),
depending on the developer or the particular development project. The remaining
balance after the equity, will be shouldered by some financing scheme. This
financing scheme may be provided by:

Banks
HDMF (formerly PAG-IBIG)
“In-house Financing”, by the developer themselves
or other financing institutions

If you opt to pay your remaining balance using bank financing, that means you’ll be
taking a housing loan from the bank. When you start paying to the bank, that means
you’ve already taken out your housing loan from them. When you took a loan from your
bank, you basically borrowed money and then you used that money to pay the
developer in full. But this all happened in the background and the money did not go
through your hands anymore. The bank gave it straight to the developer. And this is
what commonly confuses people. So now, your property has been fully paid as far as
the developer/seller is concerned. In fact, as far as the law is concerned, your property
has been fully paid already. But your loan from the bank is what’s outstanding. Your
debt is now to the bank — the money you borrowed, to pay the developer. So the
answer to the question on whether this Maceda Law will still apply, is no, it will not apply
anymore. That’s because the property is technically, already paid in full. •

2. Does it apply when I’ve been paying to PAG-IBIG already?

Please refer to the answer to the preceding question above.

3. My developer/seller is very slow or is already late in delivering the property, will

Maceda Law apply if I back out from the purchase?

You check first when the developer is supposed to deliver the property to you — their
supposed “deadline”. You may check your contract. Or you may also call your nearest
HLURB office and check with them when is the deadline given to the developer, as
indicated in their License to Sell for the specific project where your property is in. After
determining that your developer is at fault, you may file a complaint for rescission of
your contract and for total refunds plus damages, as appropriate, at HLURB. But as far
as Maceda Law is concerned, it is not the appropriate law to rely on, now.

Read carefully the provisions of P.D. 957. This is what applies in cases like this.

4. My developer is for some reason, the one who’s at fault and I want to back out.
Will Maceda Law apply?

The Maceda Law only assures 50% refund on all the payments you’ve made (or a little
more as appropriate). If your developer is at fault, you should not ask for only 50%
refund but for the entire amount you’ve already paid. You can even demand for
damages as you deem fit. If your developer is at fault, the provisions of P.D. 957 may
apply; and/or the appropriate provisions of Book IV of the New Civil Code on
Obligations and Contracts.

OTHER LAWS PROTECTING BUYERS OF REAL ESTATE IN THE PHILIPPINES

Further, there are other laws that protect the rights of condominium and subdivision
property buyers such as The Condominium Act of the Philippines or RA 4726 and The
Subdivision and Condominium Buyers’ Protective Decree or Presidential Decree 957
(more commonly known simply as PD 957).

Although both basically cover the same issue which is ‘refunds’, both laws cover
different situations on how the refunds are supposed to be granted. Depending on your
situation, there are laws that protect you as a buyer. Know your rights and you don’t
have to loose more money than you have to. You may not know it, but you might even
be entitled to receive 100% full refund of all the payments you’ve made.

What Will Happen To a Condominium Investment After 50 Years? Posted by: Joanne
Almaden in Condominiums, Real Estate Investing, Real Estate Laws On:September 9,
2013 Last updated: February 24, 2017

This is one of the most common concerns raised by condominium buyers. And it is a
very relevant question to ask especially since we are talking about millions of money