Q. Hi Atty Good day po sa inyo. Just want to clear my mind about the Maceda Law. Hindi po kasi ko na approved sa bank financing kaya I decided to transfer my rights sa ibang tao. Sabi ng Developer P300,000.00 daw po pagpapalipat ng name. Naka 3 yrs na po ko na bayad for the equity. May ma rerefund po ba ko. Sabi kasi sa office wala na daw forefeited daw pag hindi ko tinuloy..
Samantalang nag send na sila sa akin ng email ano requirements sa pag transfer ng name.. Tapos I clear with then if paano bentahan if ung unpaid balance ko nalang ang babayran ng bibili oo daw po.
ANS: Under the Maceda Law, it is the right of every condominium and subdivision buyers who purchased the property by installments to sell or transfer their rights to third party , who is willing to assume the balance of the condo unit.
Clarify also from the Developer, what is the P300,000.00 that is being assessed for you to pay. It is your right to know what you are required to pay and why? Is the said payment provided in the contract documents that you have earlier signed?
The claim of the Developer that whatever you paid for the last three(3) years could be forfeited if you will not proceed with the sale has no basis in law, particularly the MACEDA LAW.
Take note that it is the right of every condominium or subdivision buyers on installments basis, to transfer or sell their rights of the condo units or property. The one who will assume the balance will be the one to pay you of your selling price that the two of your agree. As a general rule , it is not the developer who pays the transferor .
For your ready reference, hereunder are the applicable provisions of the Maceda Law(RA No.6552), as regards the buyers of Condominium and subdivision projects in installments, to wit:
“SEC. 3. In all transactions or contracts involving the sale financing of real estate on installment payments, including residential condominium apartments but excluding industrial, commercial building and sales to tenants under Republic Numbered Thirty Eight Hundred forty- 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 payments of succeeding installments:
(a) To pay, without additional interest, the unpaid installments due within the total grace period earned by him which is hereby fixed at the rate of one month grace period for every one year of installment payments made: Provided, That this right this right shall be exercised by the buyer only once in every five years of life of the contract and its extensions, if any.
(b) If the contract is cancelled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of the total payments made and,
[ Refer to PD No.957, Regulating the Sale of Subdivision lots and condominiums providing penalties for violations thereof. Section 24 of PD No.957 states: Rights of the buyer in the event of his failure to pay the installments due other than the failure of the owner or developer to develop the project be governed by Republic Act No.6552(Maceda Law). (1st par). Where the transaction or contract was entered into prior to the effectivity of Republic Act No.6552 in August 1972, the defaulting buyer shall be entitled to the corresponding refund based on installment paid after the effectivity of the law in the absence any provision in the contract to the contrary”( 2nd par.]
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after five years of installments , an additional five per cent every year but not to exceed ninety percent of the total payment made: Provided, That the actual cancellation of the contract shall take place after thirty days from receipt by the buyer ( the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer. Down payments, deposits or options on the contract shall be included in the computation of the total number of installment payments made.
SEC. 4. In case where less than two years of the installment were paid, the seller shall give the buyer a grace period of not less than sixty days from the date the installment became due. If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation – or the demand for rescission of the contract by a notarial act.
SEC. 5. Under Sections 3 and 4, the buyer shall have right to sell his rights or assign the same to another person or reinstate the contract by updating the account during the period and before actual cancellation of the contract. The Deed of sale or assignment shall be done by notarial act.
SEC. 6. The buyer shall have the right to pay in advance any installment or the full unpaid balance of the purchase price any time without interest and to have such full payment of price annotated in the certificate of title covering
the property.
SEC. 7. Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3, 4, 5 and 6, shall null and void.” XXX XXX
Should the Developer fails or refuses to recognize you rights under the law, you may initiate a legal complaint with the Housing and Land Use Regulatory Board(HLURB) for redress and demand for the payment of damages and other relief that you are entitled under the law.
Looking forward you’ll find the above in order and welcome to the Batas Pinoy Global Community.
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