Asking for a Refund

Asking for a Refund – Someone messaged me asking if there's a way to partially get back the money they've paid for a pre-selling property.

The gist is that they've paid a total of around Php400,000. The developer advised that they will only be able to refund Php44,000 of this amount due to liquidated damages.

So, I advised them to read about the "Maceda Law," which states...

"If the contract is canceled [and if the buyer has made payments for at least 2 years], the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to 50% of the total payments made...The actual cancellation of the contract shall take place after 30 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."

Here's an additional excerpt from a post I made in January 2023.

[ How do you go about it? What can you expect when you exercise this law?

Getting back half of what you paid doesn't always happen–even if you complied with what's required by the law. The Department of Human Settlements and Urban Developments (DHSUD; formerly HLURB) is bewildered by these claims and has a long waiting line. You may see yourself caught in legal loopholes to force you to agree to a lower amount (~30% of total payments after deducting "marketing expenses"). ]

In my old post, I advised to get a good RE lawyer. Though I believe the person who messaged is cash-strapped, so getting a lawyer might not be an option. If this were the case, they'd have to go to the DHSUD personally to file the complaint.

Why do Developers say only a small amount can only be refunded when (I think) they're fully aware of the Maceda Law?

They're likely hoping you don't know about this law. I've also seen contracts that state buyers are not entitled to refunds in cases of cancellation... 🤷🏻‍♂️