REPUBLIC ACT No.

6552 hundred eighty-nine, where per cent of the total

AN ACT TO PROVIDE the buyer has paid at least payments made: Provided,

PROTECTION TO BUYERS OF two years of installments, That the actual cancellation

REAL ESTATE ON the buyer is entitled to the of the contract shall take

INSTALLMENT PAYMENTS. following rights in case he place after thirty days from

(Rep. Act No. 6552) defaults in the payment of receipt by the buyer of the

succeeding installments: notice of cancellation or the

Section 1. This Act shall be (a) To pay, without demand for rescission of the

known as the "Realty additional interest, the contract by a notarial act and

Installment Buyer Act." unpaid installments due upon full payment of the

within the total grace period cash surrender value to the

Section 2. It is hereby earned by him which is buyer.

declared a public policy to hereby fixed at the rate of Down payments, deposits or

protect buyers of real estate one month grace period for options on the contract shall

on installment payments every one year of installment be included in the

against onerous and payments made: Provided, computation of the total

oppressive conditions. That this right shall be number of installment

payments made.

Section 3. In all transactions exercised by the buyer only

or contracts involving the once in every five years of Section 4. In case where less

sale or financing of real the life of the contract and than two years of

estate on installment its extensions, if any. installments were paid, the

payments, including (b) If the contract is canceled, seller shall give the buyer a

residential condominium the seller shall refund to the grace period of not less than

apartments but excluding buyer the cash surrender sixty days from the date the

industrial lots, commercial value of the payments on the installment became due.

buildings and sales to property equivalent to fifty If the buyer fails to pay the

tenants under Republic Act per cent of the total installments due at the

Numbered Thirty-eight payments made, and, after expiration of the grace

hundred forty-four, as five years of installments, an period, the seller may cancel

amended by Republic Act additional five per cent every the contract after thirty days

Numbered Sixty-three year but not to exceed ninety from receipt by the buyer of
the notice of cancellation or

the demand for rescission of Section 8. If any provision of

the contract by a notarial act. this Act is held invalid or

unconstitutional, no other

Section 5. Under Section 3 provision shall be affected

and 4, the buyer shall have thereby.

the right to sell his rights or

assign the same to another Section 9. This Act shall take

person or to reinstate the effect upon its approval.

contract by updating the

account during the grace

period and before actual

cancellation of the contract.

The deed of sale or

assignment shall be done by

notarial act.

Section 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.

Section 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.