Notes on RA 6552 & PD 957
RA 6552 provides protection to buyers of real property on installment basis.
A buyer who has paid less than 2 year of installment is entitled to a grace period of not less than 60 days to pay the installment due. A buyer who has paid at least two years of interest is entitled to a grace period of one month for every year of installment payment made, to be exercised only once every five years of the life of the contract, and to be refunded a cash surrender value equal to 50% of his total payments if the contract is cancelled. If he has paid five years or more, he is entitled to an increase of 5% for every year, up to 90% of his total payment.
PD 957 allows a buyer of a subdivision lot or condominium, after due notice, to desist from paying installments, due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer may, at his option, be reimbursed for the total amount paid including amortization interests but excluding delinquency interests.Grounds for partition of common areas: In case of voluntary dissolution of condominium corporation, the common areas shall be transferred pro indiviso to the members of the corporation (Sec. 12, RA 4726)
Grounds for dissolution of the condominium:
[1] Three years after damage or destruction to ½ of the units, more than 30% of the stockholders are opposed to the rebuilding or repair; or
[2] The –project or material part thereof has been condemned or expropriated and more than 70% of the members are opposed to the repair. (Sec. 13, RA 4726)
[3] By affirmative vote of all the stockholders. (Sec. 14, RA 4726)
A buyer who has paid less than 2 year of installment is entitled to a grace period of not less than 60 days to pay the installment due. A buyer who has paid at least two years of interest is entitled to a grace period of one month for every year of installment payment made, to be exercised only once every five years of the life of the contract, and to be refunded a cash surrender value equal to 50% of his total payments if the contract is cancelled. If he has paid five years or more, he is entitled to an increase of 5% for every year, up to 90% of his total payment.
PD 957 allows a buyer of a subdivision lot or condominium, after due notice, to desist from paying installments, due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer may, at his option, be reimbursed for the total amount paid including amortization interests but excluding delinquency interests.Grounds for partition of common areas: In case of voluntary dissolution of condominium corporation, the common areas shall be transferred pro indiviso to the members of the corporation (Sec. 12, RA 4726)
Grounds for dissolution of the condominium:
[1] Three years after damage or destruction to ½ of the units, more than 30% of the stockholders are opposed to the rebuilding or repair; or
[2] The –project or material part thereof has been condemned or expropriated and more than 70% of the members are opposed to the repair. (Sec. 13, RA 4726)
[3] By affirmative vote of all the stockholders. (Sec. 14, RA 4726)
