The Realty Installment Buyer Protection Laws

The Realty Installment Buyer Protection Act or Republic Act 6552 is also known as the Maceda Law. This law provides protection to installment buyers against onerous and oppressive conditions. In case of non-payment of installment, the contract will not be outrightly cancelled but the buyer will be given a grace period equivalent to one month per year of installment payment made, without additional interest. If the buyer cannot pay within the grace period and the contract is cancelled, the buyer does not lose everything as he is entitled to a refund of 50 percent of the total payments made.

The buyer should not forget his responsibilities, however. He should keep in mind that he is duty-bound to examine the property he is purchasing and that he assumes the conditions which are clear, apparent and readily ascertainable on the page of the title.

Senator Rodolfo B. Biazon authored this bill called Senate Bill No. 185 - REALTY INSTALLMENT BUYER PROTECTION ACT in the 14th Congress filed last 23rd of July 2007 wherein its legislative status is still on pending process. The scope and nature of this senate bill is national and provide additional protection of property buyers which needed amendments in order to adapt to current times and on plug the loopholes of Republic Act 6552 once this bill is passed in support of R.A. 6552. The latter was enacted and authored back in 26th of August 1972 by former Senator Ernesto Maceda.

Senate Bill 185's long title is AN ACT TO PROVIDE ADDITIONAL PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS BY REQUIRING SUBDIVISION OR REAL ESTATE OWNERS TO HAVE AN INDIVIDUAL TITLE ON EVERY LOT AVAILABLE FIRST BEFORE OFFERING THE SAME FOR SALE, PROHIBITING ANY MORTGAGE, LIEN OR ENCUMBRANCE ON THE SAME, MAKING THE ANOTATION ON THE TITLE OF THE CONTRACT TO SELL OR SALE MANDATORY, MAKING IT COMPULSORY FOR THE EXECUTION OF A DEED OF ABSOLUTE SALE AND THE DELIVERY OF THE TITLE TO THE BUYER UPON COMPLETION OF INSTALLMENT PAYMENTS, AND PROVIDING OTHER PROTECTIVE MEASURES, INCLUDING THE IMPOSITION OF PENALTY FOR VIOLATION THEREOF.

NEWS: BIR issues new rules concerning one-time real estate transaction

I have read on this article published last 26th November 2007 which was written by Ms. Iris Gonzales of the Philippine Star Revenue Memorandum Circular No. 76-2007 issued by Bureau of Internal Revenue last 25th of October 2007.

Fraudulent Tax evaders of real estate transactions days are numbered. The Bureau of Internal Revenue sharpening its teeth in collecting the revenues on the real estate industry which is on the upswing on current times.

BIR has set additional required documents which are mandatory for one-time real estate transaction. The needed documents include photocopy of official receipts issued by the seller, for purpose of determining whether of real property is on cash basis, a deferred payment sale or installment. Also acknowlegement receipt or proof of payment must be presented if the seller is not engage in business.

While the Contract to Sell and official receipts of payments are among the documents required for installment sales in Annex A2 of Revenue Memorandum Order No. 15-2003, the taxpayer presents only the Deed of Absolute Sale which is, oftentimes, executed upon full payment. The purpose of requiring the submission of a photocopy of the official receipts is for the Revenue District Office to have a means of validating if the transaction is on cash basis, deferred payment or installment plan. BIR Chief Lilian Hefti issued this memoranda in order to ensure transparent dealings and that taxes are appropiately paid and remitted to the government.

It seems that real estate transactions before do not have transparency in making deals with the Bureau of Internal Revenue. Awkwardly saying that there are some cases when taxes are filed incorrectly and some unscrupoulous individuals (sellers, buyers, etc.) engage in this type sale issued by the previous owner/seller to the buyer.

Here is the link for more information and better understanding of this subject. Revenue Memorandum Circular No. 76-2007

Field Trip: A visit at the CELADON MANILA

Last 24th of October 2007, Real Estate Brokers from Pampanga all coming from two different real estate organizations in the province namely Real Estate Brokers Association of the Philippines - Pampanga Chapter, Inc. (REBAP-Pampanga Chapter), Philippine Association of Realtors Board - Metro Angeles Realtors Board (PAREB-MAREB) were in invited on a one day field tripping with Ayala Land Inc's mid to high end type of residential living offering from COMMUNITY INNOVATIONS, INC.

Community Innovations, Inc is under the umbrella corporation of Ayala Land Inc. The largest and most experienced real estate developer in the Philippines is dedicated to providing you with your "ideal home". Community Innovations, targets the young urban professionals who thrive in vibrant communities that appeal to their active lifestyles.

Celadon Manila is an Ayala Land, Ayala Malls and Community Innovations Integrated Development. In the City of Manila lies the 11 hectare prime property which was the former site of the Manila Jockey Club and San Lazaro Hippodrome where Celadon Manila now sits. These developments comprised of Celadon Residences (Townhouses) , Celadon Park San Lazaro (high rise condominiums) and the soon to rise Business Processing Outsource (BPO) building for Ayala Land group of companies in uptown Manila and a Ayala Mall in Manila.

Scale models of the Celadon Park San Lazaro and the Ayala BPO building in Celadon Manila

Townhouse Living at its best, complete with amenities for unit owners exclusive use at Celadon Residences

CELADON MANILA's unique location is highly accessible to University Belt, SM San Lazaro Mall, LRT Line 1 and other conveniences you can enjoy relax and unwind in a community with a refreshing and vibrant lifestyle. It is the only and last of its kind to built in the densely populated uptown Manila.

Inside Celadon Model Unit with me seating at the living area couch at left and my mom posing beside the Celadon Park Sales Office.

For more details and inquiries on CELADON MANILA, you can call us at (+63917) 510-0734 (CRB Benedict F. Baluyut, REBL No. 8358) ; (+63928) 504-6781  - CRB Corazon F. Baluyut, REBL No. 1684 (PRC Licensed Real Estate Brokers). You can visit our website at https://www,cfbaluyutrealty.com.