The Maceda Law: Basics That You Should Know
Thinking of buying a condominium or house and lot in Baguio City? You may be ready to take this next step in your life, but you might also be worried about being able to make this purchase fit your budget. In this case, you may be exploring the possibility of paying for your house or condominium in Baguio City on an installment basis.
But before you sign a contract, you need to know your legal rights and obligations. Installment payments for property are regulated by the Maceda Law, aka R.A. 6552. Keep reading to find out more about this law, and how it can protect you when you have payment issues.
What Is The Maceda Law?
Named after ex-Senator Ernesto Maceda, the Maceda Law was designed to protect buyers from unfair conditions in a property sale. It lays down the rights of real estate buyers from conditions that are oppressive and onerous. As a matter of public policy, the law favors the side of the buyer if the seller or property developer acts unfairly.
What Does This Law Cover?
The Maceda Law protects two types of qualified buyers. The first type of buyers are those have paid at least two years of installments involving the sale of real estate properties on installment. Properties covered by this type include apartments, houses, and lots, residential condominiums, houses, and townhouses.
The second are those who have bought any of the properties mentioned above, but have paid less than two years’ worth of installments – their legal remedies and rights will be different.
You Have Legal Guarantees If You Fall Behind On Your Installments
If you default on your installments, you’re allowed to pay these unpaid and due installments within an earned grace period. Grace periods are fixed at the rate of an additional one-month grace period earned for every year that an installment payment made. This option is only allowed to be exercised by a buyer once every five years of the contract’s life.
If you’ve paid less than two years’ worth of installments, fret not! The law still grants you a grace period of no less than 60 days to pay the unpaid and due installments to the seller.
Talk To A Real Estate Agent In Baguio City For Advice
This is just the tip of the iceberg when it comes to your rights under the Maceda Law. There are other legal protections if you want to cancel the contract, or if you’re trying to avail of the grace period in a time of crisis like the COVID-19 pandemic.
For more information about paying for your desired Baguio City property through installments, contact a real estate agent in Baguio to find out more. They’ll give you helpful tips on what you should do to enforce and protect your rights as a buyer, so you can enter a fair contract for the property of your dreams!