Maceda Law: A Practical Guide for Property Buyers Paying by Installment

What the law covers

The Realty Installment Buyer Protection Act applies to transactions involving the sale or financing of real estate on installment payments, including residential condominium apartments, with specified exclusions.

If at least two years of installments have been paid

Section 3 provides qualifying buyers with a grace period calculated at one month for every year of installment payments made, subject to the law’s conditions. If the contract is cancelled, the law also provides a cash surrender value framework.

If less than two years have been paid

Section 4 provides a grace period of at least 60 days from the date the installment became due. If the buyer still fails to pay, cancellation requires the process stated in the law, including notice by notarial act.

Why buyers should understand this before default happens

Buyer rights are easier to protect when contracts, official receipts, payment records and notices are organized. Do not wait for a payment problem before reading the cancellation provisions of the contract.

Before committing to a payment plan, use our Cebu property payment-terms guide and due-diligence checklist.