edge888 wrote:hi I bought a condo unit and paid 26 months already but Im planning to have it forefeited due to finance problems.
My payment term is 20% payable in 30 months with with 2 initial downpayments of 25k for the first 2 installments and 80% balance payable at turnover but i added and reserved a parking slot along the way so the final amount paid is 15%.
Are all my payments applicable for the 50% refund under maceda law? Is maceda law applicable only if a certain minimum percentage of the tcp has been paid? Or is it only based on the number of months paid as criteria? Thanks in advance.
Here's what the Maceda law says;
Under the Maceda Law, there are two qualification categories of buyers accorded protection. These buyers are:
1. Under Section 3 of Maceda Law, a buyer with at least 2 years of installments
2. Under Section 4 of Maceda Law, a buyer with less than 2 years of installments
“…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 payment of succeeding installments:
a.) To pay, without additional interest, the unpaid installment 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 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 cancelled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty percent of the total payments made… Down payments, deposits or options on the contract shall be included in the computation of the total number of installment payments made”
“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.
If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after 30 days from the receipt by the buyer the notice of cancellation of the demand for rescission of the contract by a notarial act.”