Supreme Court E-Library
Information At Your Fingertips

TO START click E-Library Search . --> CLICK THE IMAGE TO SEARCH

Office of the Court Administrator" />

Foreign Supreme Courts

• Korea, South
• Malaysia
• Singapore
• United States of America

View printer friendly version

S. No. 775 / 68 OG No. 50, 9635 (December 11, 1972)

[ REPUBLIC ACT NO. 6552, September 14, 1972 ]

AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. This Act shall be known as the "Realty Installment Buyer Protection Act".

SEC. 2. It is hereby declared a public policy to protect buyers of real estate on installment payments against onerous and oppressive conditions.

1. To pay, without additional interest, the unpaid installments 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.
   
2. 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 per cent of the payments made and, after five years of installments an additional five per cent every year but not to exceed ninety per cent of the total payments made: Provided, That the actual cancellation of the contract shall take place after thirty 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.
   

SEC. 4. 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 thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act.

SEC. 5. Under Sections 3 and 4, the buyer shall have the right to sell his rights or assign the same to another person or to reinstate the contract by updating the account during the grace period and before actual cancellation or the contract. The deed of sale or assignment shall be done by notarial act.

SEC. 6. The buyer shall have the right to pay in advance any installment or the full unpaid balance of the purchase price any time without interest and to have such full payment of the purchase price annotated in the certificate of title covering the property.

SEC. 7. Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3. 4, 5 and 6, shall be null and void.

SEC. 8. If any provisions of this Act is held invalid or unconstitutional no other provision shall be affected thereby.

SEC. 9. This Act shall take effect upon its approval.

Approved, September 14, 1972.

© Supreme Court E-Library 2019
This website was designed and developed, and is maintained, by the E-Library Technical Staff in collaboration with the Management Information Systems Office.