_edited_.png)
In 1972, former Senator Ernesto Maceda recognized the need to protect real estate buyers and introduced the "Realty Installment Buyer Protection Act," commonly known as the "Maceda Law."
According to this law, if a buyer has paid at least two years' worth of installments on a real estate property and then defaults, they are entitled to a refund of 50% of the total payments made.
The law specifies:
"If the contract is canceled, 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."
However, obtaining this refund can be challenging. The Department of Human Settlements and Urban Development (DHSUD; formerly HLURB) often faces a backlog of cases, and buyers may encounter legal obstacles that could pressure them into accepting a lower refund, sometimes around 30% of total payments after deducting "marketing expenses."
To navigate this process effectively:
1. Hire a reputable real estate lawyer: Choose someone you trust and who specializes in real estate law.
2. Send a formal demand letter to the developer: This demonstrates your seriousness and intent.
3. Be prepared for a lengthy process: It may take several months, requiring persistent follow-ups.
4. Maintain written communication: Use email to create a documented trail. If a developer's representative contacts you by phone, request that all communications be conducted via email.
5. Understand all documents before signing: If unsure, consult your lawyer to clarify any terms or conditions.
Good luck!