MACEDA LAW - Downpayment: 100,000

 Also known as “Realty Installment Buyer - Monthly Installment of 10,000 for 10 years
Act
 Applies to Installment Sale of Residential
Real Properties Questions:
 Does not apply to: other classes of Real
estate such as commercial and industrial, 1. Suppose B failed to pay a month after paying 2
sales on tenants, and mortgage sales. years?

When the buyer has paid at least 2 years of
installments, the buyer is entitled to the following in
case he defaults in the payment of succeeding
payments
A. To pay, without additional interest.
 1 month grace period per year
 Only once in every five years
B. If the contract is cancelled, the seller shall refund
the buyer the cash surrender value of the payments.
 Equivalent to 50% of total payments made
(downpayment, discount etc. is included)
 After five years of installment, additional
5% every year but not to exceed 90% of the
total payments made
C. In case where less than 2 years of installments
were paid
A. If B can still pay, he will be given 2 months grace
period WITHOUT INTEREST
B. If the contract is cancelled, eligible for 170,000
(24mos x 10,000 + 100,000)
2. Suppose B failed to pay a month after paying 1
year?
A. If B can still pay, he will be given 60 days grace
period WITH INTEREST
3. Suppose B failed to pay a month after 8 years of
paying?
A. If B can still pay, he will be given a 8 months
grace period, provided that B didn’t exercise this
right for the last 5 years
B. If the contract is cancelled, eligible for 689,000
(8yrs x 12mos x 10,000 + 100,000 x 65%)

 Seller shall give the buyer a grace period of

not less than 60 days from the date the
installment became due

D. If the buyer fails to pay the installments due at the

expiration of the grace period

 Seller may cancel the contract after 30 days

from the receipt by the buyer of the notice of
cancellation or the demand of rescission of
the contract by a notarial act

Traditio Simbolica – symbol representing the thing

such as the key of a house
EXAMPLE
Traditio Longa Manu – pointing out (ayon yung
B bought a residential lot from S in installment.
property mo)
Traditio Brevi Manu – from lessee – owner (at the
very beginning nasa buyer yung possession ng thing)

Traditio Constitutum Possessorium – from owner –

lessee (even na nabenta na, nasa seller pa rin yung
ownership maybe kasi need niya sa business then
nirent out niya muna doon sa buyer the new owner)

Traditional by Legal Formalities – execution of a

public instrument is equivalent to delivery.

GR: there is presumption of delivery

ER:

a. Contrary stipulation

b. When at the time of execution, subject matter was

not subject to the control of seller

c. Seller has no capacity to deliver at the time of

execution

d. Such capacity should subsist for a reasonable time

after execution of instrument