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  • RA 6552 protects real estate installment buyers

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    Jaimie Lyn Tan
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    This act provides protection to buyers of real estate purchased through installment payments. It establishes rights for buyers who have paid at least two years of installments, including the right to a grace period to pay unpaid installments equal to one month for every year of payments made. If the contract is cancelled, the seller must refund the buyer 50% of total payments plus an additional 5% for every year after 5 years, up to 90% of payments. The act also provides a minimum 60 day grace period for buyers who have paid less than 2 years of installments.

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    RA 6552

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    This act provides protection to buyers of real estate purchased through installment payments. It establishes rights for buyers who have paid at least two years of installments, including the right to a grace period to pay unpaid installments equal to one month for every year of payments made. If the contract is cancelled, the seller must refund the buyer 50% of total payments plus an additional 5% for every year after 5 years, up to 90% of payments. The act also provides a minimum 60 day grace period for buyers who have paid less than 2 years of installments.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    47 views1 page

    RA 6552 protects real estate installment buyers

    Uploaded by

    Jaimie Lyn Tan
    This act provides protection to buyers of real estate purchased through installment payments. It establishes rights for buyers who have paid at least two years of installments, including the right to a grace period to pay unpaid installments equal to one month for every year of payments made. If the contract is cancelled, the seller must refund the buyer 50% of total payments plus an additional 5% for every year after 5 years, up to 90% of payments. The act also provides a minimum 60 day grace period for buyers who have paid less than 2 years of installments.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    of 1

    REPUBLIC ACT No.

    6552 If the buyer fails to pay the installments due at


    the expiration of the grace period, the seller
    AN ACT TO PROVIDE PROTECTION TO may cancel the contract after thirty days from
    BUYERS OF REAL ESTATE ON receipt by the buyer of the notice of
    INSTALLMENT PAYMENTS. (Rep. Act No. cancellation or the demand for rescission of
    6552) the contract by a notarial act.

    Section 1. This Act shall be known as the Section 5. Under Section 3 and 4, the buyer
    "Realty Installment Buyer Act." shall have the right to sell his rights or assign
    the same to another person or to reinstate the
    Section 2. It is hereby declared a public policy contract by updating the account during the
    to protect buyers of real estate on installment grace period and before actual cancellation of
    payments against onerous and oppressive the contract. The deed of sale or assignment
    conditions. shall be done by notarial act.

    Section 3. In all transactions or contracts Section 6. The buyer shall have the right to
    involving the sale or financing of real estate pay in advance any installment or the full
    on installment payments, including residential unpaid balance of the purchase price any time
    condominium apartments but excluding without interest and to have such full payment
    industrial lots, commercial buildings and sales of the purchase price annotated in the
    to tenants under Republic Act Numbered certificate of title covering the property.
    Thirty-eight hundred forty-four, as amended
    by Republic Act Numbered Sixty-three Section 7. Any stipulation in any contract
    hundred eighty-nine, where the buyer has hereafter entered into contrary to the
    paid at least two years of installments, the provisions of Sections 3, 4, 5 and 6, shall be
    buyer is entitled to the following rights in case null and void.
    he defaults in the payment of succeeding
    installments: Section 8. If any provision of this Act is held
    invalid or unconstitutional, no other provision
    (a) To pay, without additional interest, shall be affected thereby.lawphi1 ™

    the unpaid installments due within the


    total grace period earned by him Section 9. This Act shall take effect upon its
    which is hereby fixed at the rate of one approval.
    month grace period for every one year
    of installment payments made: Approved: August 26, 1972.
    Provided, That this right shall be
    exercised by the buyer only once in
    every five years of the life of the
    contract and its extensions, if any.

    (b) If the contract is canceled, 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,
    after five years of installments, an
    additional five per cent every year but
    not to exceed ninety per cent of the
    total payments made: Provided, That
    the actual cancellation of the contract
    shall take place 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 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. lawphi1 ™

    Section 4. In case where less than two years


    of installments were paid, the seller shall give
    the buyer a grace period of not less than sixty
    days from the date the installment became
    due.

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