I. Introduction

In the Philippines, many condominium units, subdivision lots, and house-and-lot packages are sold on a pre-selling basis. The buyer pays a reservation fee, monthly down payment, equity, or installments while the project is still being constructed. Sometimes, the buyer later decides to cancel because of financial difficulty, delay, change of plans, dissatisfaction with the developer, or inability to continue payments.

When that happens, one of the most important laws to consider is Republic Act No. 6552, commonly known as the Maceda Law or the Realty Installment Buyer Protection Act.

The Maceda Law gives minimum statutory protection to buyers of residential real estate who have paid installments but later default, discontinue, or face cancellation of the sale. It is especially relevant to pre-selling condominium and subdivision buyers because these transactions usually involve installment payments over several months or years before turnover.

However, the law is often misunderstood. Many buyers assume that every cancelled pre-selling unit automatically entitles them to a 50% refund. That is not always correct. The refund depends mainly on how long the buyer has paid, why the contract is being cancelled, and whether the buyer or developer is at fault.

II. What Is the Maceda Law?

The Maceda Law is a buyer-protection statute covering certain sales of real estate on installment. Its purpose is to soften the harsh effects of forfeiture when a buyer has already made substantial installment payments but later fails to continue paying.

It gives buyers statutory rights such as:

A grace period to pay unpaid installments;
The right to sell or assign their rights before cancellation;
The right to reinstate the contract by updating payments within the grace period;
The right to a refund, also called the cash surrender value, when the buyer has paid at least two years of installments;
Protection against automatic cancellation without proper notice and compliance with the law.

The Maceda Law is considered a remedial and protective law. Contract provisions that give the buyer less than what the law provides may be invalid or unenforceable to that extent.

III. Transactions Covered by the Maceda Law

The Maceda Law generally applies to sales or financing of residential real estate on installment payments.

Covered transactions commonly include:

Pre-selling condominium units;
Subdivision lots;
Residential house-and-lot packages;
Townhouses sold on installment;
Residential lots sold by developers;
Other residential real estate installment sales.

The law applies even if the unit is not yet completed, as long as the transaction is a sale of residential real estate by installment.

It does not generally apply to:

Industrial lots;
Commercial buildings;
Sales to tenants under agrarian laws;
Pure leases, unless the arrangement is actually a disguised sale;
Mortgage loans with banks or third-party lenders, because the buyer’s relationship with the bank is usually governed by the loan and mortgage documents, not by the Maceda Law refund mechanism.

A common complication arises when the buyer paid the developer through installment equity, then later obtained a bank loan for the balance. In that case, the Maceda Law may apply to the installment sale aspect, while the bank loan is governed separately by the loan and mortgage agreement.

IV. Does the Maceda Law Apply to Pre-Selling Condominium Units?

Yes, the Maceda Law can apply to pre-selling condominium units if the buyer purchased the unit on installment.

In a typical pre-selling condominium purchase, the buyer pays:

Reservation fee;
Monthly down payment;
Equity installments;
Miscellaneous charges;
Balance payable upon turnover or through bank financing.

If the buyer later defaults or cancels before full payment, the buyer’s rights may be governed by the Maceda Law, the contract to sell, the reservation agreement, the buyer’s information sheet, the condominium documents, and other real estate regulations.

The fact that the unit is pre-selling does not remove Maceda Law protection. What matters is that the subject is residential real estate and that payments were made by installment.

V. Key Distinction: Buyer Cancellation vs. Developer Breach

Before computing any refund, one must first determine why the sale is being cancelled.

There are two broad situations:

A. Buyer-Initiated Cancellation or Buyer Default

This happens when the buyer cancels because they no longer want or can no longer afford the unit, or when they fail to pay installments.

Examples:

The buyer stopped paying monthly equity;
The buyer can no longer obtain financing;
The buyer changed their mind;
The buyer wants to transfer to another project but cannot;
The buyer voluntarily asks to cancel without proving developer fault.

In this situation, the Maceda Law usually governs the buyer’s minimum rights.

B. Developer-Initiated Cancellation, Developer Delay, or Developer Breach

This happens when the cancellation is caused by the developer’s failure or fault.

Examples:

The project was not completed within the promised period;
The developer failed to deliver the unit;
The developer had no proper license or authority to sell;
The unit materially differs from what was represented;
The developer cancelled the project;
The developer cannot transfer title;
The developer committed misrepresentation.

In these cases, the buyer may argue for remedies beyond the Maceda Law, including full refund, interest, damages, or administrative relief before the proper housing or adjudicatory agency. The Maceda Law refund is often treated as a minimum protection in buyer-default cases, not as a ceiling on recovery when the developer is the one at fault.

VI. The Two-Year Rule

The most important Maceda Law question is:

Has the buyer paid at least two years of installments?

The answer determines the buyer’s rights.

VII. If the Buyer Has Paid Less Than Two Years

If the buyer has paid less than two years of installments, the buyer is generally entitled to:

A grace period of at least 60 days from the date the installment became due; and
The right to pay the unpaid installment within that grace period.

If the buyer fails to pay within the grace period, the seller may cancel the contract, but cancellation is not automatic. The seller must still give the buyer proper notice of cancellation or demand for rescission by notarial act, and cancellation becomes effective only after the required period.

Is the Buyer Entitled to a Refund if Less Than Two Years Were Paid?

Generally, under the Maceda Law, no statutory refund is required if the buyer has paid less than two years of installments.

This is one of the most important practical points. A buyer who paid only a few months, or even more than one year but less than two years, may not be entitled to the 50% cash surrender value under the Maceda Law.

However, the buyer may still recover money if:

The contract gives a better refund right;
The developer voluntarily grants a refund;
The cancellation is due to developer breach;
The payment was not properly forfeitable;
The developer failed to comply with required cancellation procedure;
The reservation fee or other charge was collected under misleading or unlawful circumstances;
The buyer has separate rights under real estate, consumer, civil, or administrative law.

VIII. If the Buyer Has Paid at Least Two Years

If the buyer has paid at least two years of installments, the buyer receives stronger protection.

The buyer is entitled to:

A grace period of one month for every year of installment payments made;
The right to update the account during the grace period without additional interest;
The right to sell or assign rights to another person before cancellation;
The right to reinstate the contract by paying the arrears before cancellation;
If the contract is cancelled, a refund called the cash surrender value.

IX. The Maceda Law Refund: Cash Surrender Value

For buyers who have paid at least two years of installments, the seller must refund the buyer the cash surrender value of the payments made.

The basic refund is:

50% of the total payments made.

After five years of installments, the buyer is entitled to an additional:

5% of total payments made for every year after the fifth year.

The refund cannot exceed:

90% of total payments made.

Refund Formula

For at least two years but not more than five years of payments:

Refund = 50% of total payments made

For more than five years of payments:

Refund = 50% + 5% for every year after the fifth year, subject to a maximum of 90%

Example 1: Buyer Paid 24 Months

Total payments made: ₱1,000,000 Years paid: 2 years Refund rate: 50% Refund: ₱500,000

Example 2: Buyer Paid 5 Years

Total payments made: ₱2,000,000 Years paid: 5 years Refund rate: 50% Refund: ₱1,000,000

Example 3: Buyer Paid 7 Years

Total payments made: ₱3,000,000 Years paid: 7 years Base refund: 50% Additional refund: 5% for year 6 + 5% for year 7 = 10% Total refund rate: 60% Refund: ₱1,800,000

Example 4: Buyer Paid 14 Years

Total payments made: ₱5,000,000 Base refund: 50% Additional years after fifth year: 9 years × 5% = 45% Theoretical rate: 95% Maximum allowed: 90% Refund: ₱4,500,000

X. What Counts as “Total Payments Made”?

The law includes in the computation of total payments made:

Down payments;
Deposits;
Options;
Installment payments;
Other payments applied to the purchase price.

For pre-selling units, the following may be argued as part of total payments if they were connected to the purchase price or acquisition of the unit:

Reservation fee;
Equity payments;
Monthly down payment;
Option money;
Payments credited to the contract price.

However, developers often dispute whether certain charges should be included, especially:

Association dues;
Documentation fees;
Transfer charges;
Taxes;
Penalties;
Interest;
Administrative charges;
Processing fees;
Move-in fees;
Utility deposits.

As a practical matter, the buyer should request a detailed statement of account showing which payments were credited to the purchase price and which were treated as separate charges. If a fee was merely labeled “non-refundable” but functioned as part of the purchase consideration, the buyer may challenge its exclusion from the refund computation.

XI. Is the Reservation Fee Refundable?

The answer depends on the nature of the reservation fee and the circumstances of cancellation.

Developers often state in reservation agreements that the reservation fee is “non-refundable.” However, that label is not always decisive.

A reservation fee may be included in the Maceda Law computation if it is effectively a deposit, option money, or payment connected to the purchase price. If it was credited to the contract price, the buyer has a stronger argument that it forms part of total payments made.

But if the buyer paid less than two years and the cancellation is buyer-initiated, the Maceda Law may not require a refund even if the reservation fee was part of the amount paid.

If the developer is at fault, or if the sale was induced by misrepresentation, the buyer may have a stronger claim for refund of the reservation fee regardless of the “non-refundable” wording.

XII. Proper Cancellation Procedure

A developer or seller cannot simply treat the contract as cancelled the moment the buyer misses a payment.

The Maceda Law requires proper cancellation. For cancellation to be effective, the seller must generally serve a notice of cancellation or demand for rescission by notarial act.

For buyers entitled to a cash surrender value, cancellation becomes effective only after:

The buyer receives the notarized notice of cancellation or demand for rescission; and
The seller pays the required cash surrender value.

This is crucial. If the buyer has paid at least two years, the developer cannot validly cancel the contract without paying the required Maceda Law refund.

A mere email, text message, statement of account, collection letter, or verbal notice may be insufficient if it does not comply with the statutory requirement of a notarial act.

XIII. Grace Period Rights

A. Less Than Two Years Paid

The buyer is entitled to a grace period of at least 60 days from the due date of the unpaid installment.

B. At Least Two Years Paid

The buyer is entitled to a grace period of one month for every year of installment payments made.

For example:

2 years paid = 2 months grace period;
3 years paid = 3 months grace period;
5 years paid = 5 months grace period.

The buyer may use this grace period to update payments without additional interest. This right may generally be exercised once every five years of the life of the contract and its extensions.

XIV. Right to Sell or Assign the Unit Before Cancellation

Before actual cancellation, the buyer has the right to sell or assign their rights to another person.

This can be important in pre-selling units, especially when the unit has appreciated in value. Instead of allowing cancellation and receiving only a partial refund, a buyer may try to transfer the contract to a third party, subject to the developer’s reasonable transfer requirements and payment of applicable fees.

The buyer should act before cancellation becomes effective. Once the contract is validly cancelled, there may be no remaining rights to assign.

XV. Right to Reinstate the Contract

The buyer may also reinstate the contract by updating the account within the applicable grace period and before actual cancellation.

This means that if the buyer cures the default in time, the developer should not proceed with cancellation.

XVI. Can the Developer Deduct Penalties, Taxes, or Charges from the Refund?

This depends on the contract and the nature of the charges.

The Maceda Law speaks of a percentage of the total payments made. Developers may attempt to deduct:

Penalties;
Administrative fees;
Broker’s commission;
Taxes;
Documentation fees;
Cancellation charges;
Transfer costs;
Unpaid dues.

Buyers should carefully review the computation. A developer should not use deductions to defeat the statutory minimum refund. If the deduction effectively reduces the buyer’s refund below the Maceda Law cash surrender value, the buyer may challenge it.

That said, legitimate charges not forming part of the purchase price may be treated separately depending on the contract and facts.

XVII. Can the Buyer Waive Maceda Law Rights?

As a general principle, contractual waivers that defeat statutory protections are disfavored.

A developer cannot avoid the Maceda Law simply by inserting provisions such as:

“All payments shall be forfeited”;
“Reservation fee and installments are non-refundable”;
“Buyer waives all rights under law”;
“Cancellation automatically forfeits all payments.”

Such clauses may be valid only to the extent that they do not reduce the buyer’s minimum statutory rights. If the Maceda Law grants a refund, a forfeiture clause cannot legally erase that right.

XVIII. Maceda Law vs. Contract to Sell

Most pre-selling transactions use a Contract to Sell, not an absolute Deed of Sale.

In a contract to sell, ownership is usually retained by the developer until the buyer fully pays the purchase price. Developers sometimes argue that because the buyer has not yet acquired ownership, all payments may be forfeited upon default.

The Maceda Law limits that argument. Even under a contract to sell, if the transaction is a covered residential real estate installment sale, the buyer may invoke Maceda Law protections.

XIX. Maceda Law vs. PD 957 and Housing Regulations

The Maceda Law is not the only law relevant to cancelled pre-selling units.

Another important law is Presidential Decree No. 957, the Subdivision and Condominium Buyers’ Protective Decree. PD 957 and related housing regulations address developer obligations, licenses to sell, project registration, delivery, title, advertisements, and buyer protection.

The distinction is important:

Maceda Law usually deals with buyer protection in installment default or cancellation.
PD 957 and housing regulations usually deal with developer obligations, project compliance, misrepresentation, delivery, and subdivision or condominium buyer protection.

If the buyer cancels merely because of inability to pay, Maceda Law is usually central.

If the buyer cancels because the developer delayed, failed to deliver, lacked authority, changed the project, or breached obligations, the buyer should consider remedies beyond Maceda Law.

XX. Buyer Cancellation Due to Delay in Turnover

A common pre-selling dispute involves delayed turnover.

If the developer promised turnover by a certain date but failed to deliver, the buyer may argue that the developer breached the contract. In that case, the buyer may demand more than the Maceda Law refund, potentially including full refund, interest, damages, or administrative remedies.

However, the outcome depends on:

The promised turnover date;
Grace periods in the contract;
Force majeure provisions;
Whether the delay was justified;
Whether the buyer was also in default;
The developer’s notices and disclosures;
The actual construction and completion status;
Whether a license to sell existed;
The remedies stated in the contract and applicable regulations.

A buyer should not automatically accept a 50% refund if the real reason for cancellation is developer delay or breach.

XXI. Buyer Cancellation Due to Failure to Obtain Bank Financing

Many pre-selling contracts require the buyer to pay a down payment or equity during construction, then pay the balance through bank financing upon turnover.

If the buyer fails to obtain a bank loan, the developer may treat this as buyer default unless the contract makes bank approval a condition of the sale.

In that situation, the Maceda Law may apply. If the buyer paid at least two years of installments, the buyer may be entitled to the statutory cash surrender value. If less than two years, the buyer may have no statutory refund unless the contract provides otherwise or the developer is at fault.

Buyers should review whether the contract states that loan disapproval entitles them to a refund. Many contracts do not.

XXII. Buyer Cancellation During the Down Payment Period

For pre-selling units, the buyer often pays monthly down payment for 24, 36, 48, or 60 months. A question often arises: does payment of monthly down payment count as “installments” under the Maceda Law?

Generally, yes. Installment payments are not limited to payments after turnover. Monthly equity or down payment installments paid under a pre-selling contract may be considered installment payments for purposes of determining whether the buyer has paid at least two years.

Thus, a buyer who paid 24 monthly equity installments may argue that they paid at least two years of installments and are entitled to the 50% cash surrender value, assuming the transaction is otherwise covered.

XXIII. What If the Buyer Paid a Lump Sum?

The Maceda Law is designed for installment payments. If a buyer paid a lump sum equivalent to several months or years, questions may arise on whether the payment counts as years of installments.

The answer depends on the payment schedule, contract structure, and how the payment was applied. If the buyer prepaid installments corresponding to two or more years, the buyer may argue that the substance of the transaction should control. If the payment was simply a one-time reservation or initial payment without an installment structure, the analysis may differ.

XXIV. How Developers Commonly Compute Refunds

Developers may compute the refund based on:

Total amount paid;
Less charges allegedly not part of purchase price;
Multiplied by the applicable Maceda Law percentage;
Less unpaid charges, penalties, taxes, or administrative fees.

Buyers should ask for a written breakdown, including:

Total contract price;
Reservation fee;
Total monthly amortizations paid;
Payments credited to principal;
Payments credited to interest;
Penalties;
Taxes;
Miscellaneous fees;
Cancellation charges;
Refund percentage used;
Legal basis for deductions;
Expected refund release date.

A buyer should not rely only on a verbal computation from a sales agent.

XXV. When Is the Refund Due?

The Maceda Law connects effective cancellation with notice and payment of the cash surrender value. For buyers who paid at least two years, cancellation should not be treated as fully effective unless the statutory refund is paid.

In practice, developers may take weeks or months to process refunds. They may require:

Written cancellation request;
Original receipts;
Valid IDs;
Signed quitclaim or release;
Surrender of original contract documents;
Clearance from accounting;
Approval from management.

Buyers should be careful when signing quitclaims. A quitclaim may contain a waiver of future claims. If the computation is wrong or the buyer believes they are entitled to more, they should not sign without understanding the consequences.

XXVI. Can a Buyer Demand Full Refund Under the Maceda Law?

Usually, no. The Maceda Law itself does not generally grant a full refund for buyer default. It grants a statutory cash surrender value based on the number of years paid.

A full refund may be possible under other grounds, such as:

Developer breach;
Project cancellation;
Fraud or misrepresentation;
Lack of license to sell;
Failure to deliver title or unit;
Substantial delay;
Mutual agreement;
Contractual refund provision more favorable to the buyer.

Therefore, the buyer’s legal theory matters. A demand letter should not merely say “I want a Maceda Law refund” if the stronger argument is that the developer breached the contract and should return all payments.

XXVII. Practical Steps for Buyers Seeking a Refund

A buyer seeking refund for a cancelled pre-selling unit should do the following:

1. Gather Documents

Collect:

Reservation agreement;
Contract to sell;
Payment schedule;
Official receipts;
Statement of account;
Demand letters;
Emails and notices from developer;
Turnover notices;
Brochures and advertisements;
License to sell information;
Buyer’s computation;
Any cancellation forms.

2. Determine the Number of Years Paid

Count how many years of installments were actually paid. The most critical threshold is two years.

3. Determine the Reason for Cancellation

Ask whether the cancellation is due to:

Buyer default;
Voluntary withdrawal;
Financial hardship;
Failure of financing;
Developer delay;
Developer breach;
Misrepresentation;
Project cancellation.

4. Compute the Minimum Refund

If at least two years were paid, compute the cash surrender value based on total payments made.

5. Request a Written Computation

Ask the developer for an official refund computation. Do not rely on agents or informal statements.

6. Check for Improper Deductions

Review whether the developer excluded payments or deducted charges in a way that reduces the statutory refund.

7. Send a Formal Demand

If the computation is wrong or refund is refused, send a formal written demand citing the Maceda Law and other applicable grounds.

8. Consider Filing a Complaint

If unresolved, the buyer may consider administrative or legal remedies through the appropriate housing adjudicatory body or court, depending on the nature of the dispute.

XXVIII. Sample Maceda Law Refund Computation

Assume the buyer purchased a pre-selling condominium unit and paid the following:

Reservation fee: ₱50,000
Monthly equity: ₱25,000 for 24 months = ₱600,000
Total payments: ₱650,000

The buyer paid for two years.

Minimum Maceda Law refund:

₱650,000 × 50% = ₱325,000

If the developer excludes the reservation fee, the computation becomes:

₱600,000 × 50% = ₱300,000

The buyer may challenge the exclusion if the reservation fee was credited to the purchase price or formed part of the consideration for the sale.

XXIX. Sample Demand Language

A buyer’s demand may state:

I am requesting cancellation of the contract and payment of the cash surrender value due under Republic Act No. 6552, otherwise known as the Maceda Law. I have paid at least two years of installments on the subject residential unit. Accordingly, I am entitled to a refund equivalent to at least fifty percent of the total payments made, including down payments, deposits, options, and other payments forming part of the purchase price. Please provide a written computation and release the amount legally due.

If the issue is developer delay or breach, the demand should be stronger and should not be limited to the Maceda Law refund:

This cancellation is not due to mere buyer default but is based on the developer’s failure to comply with its obligations, including delayed turnover and failure to deliver the unit as represented. Accordingly, I reserve the right to demand full refund, interest, damages, and other remedies under applicable law and regulations, without prejudice to my statutory rights under the Maceda Law.

XXX. Common Developer Arguments and Buyer Responses

Argument 1: “Your payments are forfeited because the contract says so.”

Response: A forfeiture clause cannot defeat mandatory statutory rights under the Maceda Law. If the buyer paid at least two years, the buyer is entitled to the cash surrender value.

Argument 2: “Reservation fees are non-refundable.”

Response: The label “non-refundable” is not always controlling. If the reservation fee was credited to the purchase price or functioned as a deposit or option payment, it may be included in total payments made.

Argument 3: “You are not entitled to refund because the unit is pre-selling.”

Response: Pre-selling residential condominium units may still be covered if sold by installment.

Argument 4: “You stopped paying, so cancellation was automatic.”

Response: Cancellation must comply with the statutory grace period and notice requirements. For buyers who paid at least two years, cancellation is tied to payment of the cash surrender value.

Argument 5: “You paid less than two years, so you get nothing.”

Response: Under the Maceda Law, a statutory refund may not be due if less than two years were paid. However, the buyer may still have claims if the contract provides a refund, if the developer breached obligations, or if other laws apply.

XXXI. Common Buyer Mistakes

Buyers often make these mistakes:

Assuming all cancellations result in a 50% refund;
Ignoring the two-year threshold;
Failing to distinguish buyer default from developer breach;
Signing a quitclaim without checking the computation;
Accepting exclusion of reservation fees without question;
Relying only on verbal promises from agents;
Waiting too long before asserting rights;
Failing to preserve receipts and written communications;
Treating Maceda Law as the only possible remedy;
Stopping payments without documenting developer delay or breach.

XXXII. Frequently Asked Questions

1. I paid for 18 months. Am I entitled to a 50% refund?

Generally, not under the Maceda Law. The 50% cash surrender value applies when the buyer has paid at least two years of installments. But you may still have a claim if the contract provides a refund or if the developer is at fault.

2. I paid exactly 24 monthly installments. Do I qualify?

Generally, yes, if those were installment payments under a covered residential real estate sale. You may claim the 50% cash surrender value.

3. Does the 50% refund apply to the total contract price?

No. It applies to total payments made, not the total contract price.

4. Can I get back 100% of what I paid?

Not usually under the Maceda Law for buyer default. Full refund may be possible if the developer breached the contract, delayed turnover, cancelled the project, lacked authority, or committed misrepresentation.

5. Can the developer cancel my unit by email?

A mere email may not satisfy the statutory cancellation requirement if the law requires notice by notarial act. The validity of cancellation should be examined carefully.

6. Can I sell my rights to another buyer?

Yes, before cancellation, the Maceda Law recognizes the buyer’s right to sell or assign rights, subject to compliance with applicable requirements.

7. Is the developer required to pay interest on the refund?

The Maceda Law’s cash surrender value is expressed as a percentage of payments made. Interest may become an issue if there is delay, breach, judgment, contract provision, or applicable administrative or judicial order.

8. What if the developer offers a refund lower than Maceda Law?

The buyer may dispute the computation, request a breakdown, send a demand letter, and consider filing a complaint.

9. Can I cancel because the turnover is delayed?

Yes, but the legal basis should be framed carefully. If the developer caused the delay, the claim may not be merely a Maceda Law refund claim. It may be a claim for developer breach and possibly full refund or damages.

10. Does Maceda Law apply if I already got a bank loan?

Once a bank loan is involved, the analysis becomes more complicated. Payments to the developer and obligations to the bank may be governed by different documents. The buyer should review the contract to sell, deed of sale, loan agreement, and mortgage documents.

XXXIII. Remedies When the Developer Refuses to Refund

If the developer refuses to refund or gives an incorrect computation, the buyer may consider:

Sending a written demand letter;
Requesting mediation or settlement;
Filing a complaint with the appropriate housing or real estate adjudicatory agency;
Filing a civil action, depending on the dispute;
Seeking legal advice for claims involving breach, damages, fraud, or rescission.

The proper forum depends on the parties, project, nature of the claim, amount involved, and relief sought.

XXXIV. Legal Strategy: How to Frame the Claim

The buyer should avoid using the wrong theory.

If the buyer simply cannot continue payments:

The claim is likely a Maceda Law refund claim, subject to the two-year rule.

If the developer delayed turnover:

The claim should emphasize developer breach and may demand full refund, interest, damages, or other relief.

If the developer misrepresented the project:

The claim may involve fraud, misrepresentation, consumer protection, real estate regulations, and contract law.

If the developer failed to give proper cancellation notice:

The buyer may question the validity of cancellation and assert reinstatement, assignment, or refund rights.

If the developer computed the refund incorrectly:

The claim should focus on total payments made, improper exclusions, unlawful deductions, and the statutory refund percentage.

XXXV. Conclusion

The Maceda Law is a powerful protection for buyers of cancelled pre-selling residential units, but it does not mean that every buyer automatically receives a refund.

The key rules are:

If the buyer paid less than two years, the Maceda Law generally gives a grace period but no statutory refund.
If the buyer paid at least two years, the buyer is entitled to a refund of at least 50% of total payments made.
After five years of payments, the refund increases by 5% per additional year, up to a maximum of 90%.
Down payments, deposits, and option payments may be included in the refund base.
Cancellation must comply with statutory notice requirements.
A developer cannot defeat Maceda Law rights through a forfeiture or non-refund clause.
If cancellation is caused by developer delay, breach, or misrepresentation, the buyer may have remedies beyond the Maceda Law, including a possible claim for full refund or damages.

For cancelled pre-selling units, the most important task is to identify the correct legal basis. A buyer-default cancellation is usually a Maceda Law issue. A developer-breach cancellation may be much more than that.

The buyer should carefully review the contract, payment history, cancellation notices, turnover commitments, and refund computation before signing any waiver, quitclaim, or settlement document.