Bernie bought on installment a residential

subdivision lot from DEVLAND. After having

faithfully paid the installments for 48 months
Bernie discovered that DEVLAND had failed
to develop the subdivision in accordance with
the approved plans and specifications within
the time frame in the plan. He thus wrote a
letter to DEVLAND informing it that he was
stopping payment. Consequently, DEVLAND
cancelled the sale and wrote Bernie,
informing him that his payments are forfeited
in its favor.
 A Answer

No, the action of DEVLAND is not proper. Under

Section 23 of Presidential Decree No. 957,
otherwise known as the Subdivision and
Condominium Buyer’s Protection Decree, non-
payment of amortizations by the buyer is justified if
non-payment is due to the failure of the
subdivision owner to develop the subdivision
project according to the approved plans and within
the limit for complying.
 B Answer

In this case, pursuant to Section 24 of P.D. No. 957

otherwise known as the Realty Installment Buyer Protection
Act, shall govern. Under Section 3 thereof, Bernie is
entitled: 1) to pay without additional interest the unpaid
installments due within a grace period of four (4) months or
one month for every year of installment paid; 2) if the
contract is cancelled, Bernie is entitled to the refund of the
cash surrender value equal to 50% of the total payments
made. The DEVLAND on the other hand has the right to
cancel the contract after 30 days from receipt by Bernie of
notice of cancellation. DEVLAND is however obliged to
refund to Bernie 50% of the total payments made.