Last updated for general legal principles in the Philippines. This is practical information, not a substitute for tailored legal advice.

1) The Maceda Law in a Nutshell

Republic Act No. 6552 (the “Maceda Law”) protects buyers of residential real estate sold on installment. It sets minimum rights on grace periods, cancellation procedures, and cash surrender value (CSV) refunds when a buyer defaults or cancels.

Covered:

Residential subdivision lots and residential condominium units
Sales or financing on installment (including in-house and bank-financed arrangements where the developer is the seller/creditor of installments)

Generally not covered:

Purely commercial or industrial properties
Sales under agrarian reform programs
Pure cash sales (no installment relationship to protect)

If your contract mixes residential use with commercial features, look at primary intended use, marketing, and the contract wording.

2) Core Rights Under the Maceda Law

A. If you’ve paid at least 2 years of installments

Grace period: 1 month of grace for each year of paid installments, without interest, to pay unpaid dues.
Cash Surrender Value (CSV) upon cancellation:
- 50% of total payments made (include down payments and deposits)
- +5% per year after the 5th year, capped at 90% total.
Reinstatement: You may reinstate the contract by updating payments before valid cancellation.
Prepayment: You may pay in advance—any time—even in full, without interest, and receive the deed/title upon full payment.

B. If you’ve paid less than 2 years

Grace period: Not less than 60 days to pay unpaid dues.
Cancellation may follow only after (i) the 60-day grace period and (ii) the seller serves a notarial notice of cancellation or demand for rescission and 30 days elapse from your receipt of that notice.
CSV: The statute does not mandate CSV for buyers with <2 data-preserve-html-node="true" years paid. (Some developers give goodwill refunds by contract/policy, but that’s contractual, not statutory.)

C. What counts as “total payments made”?

Include: down payment, monthly installments, deposits, “reservation fees” if the contract treats them as part of the price
Exclude: interest, penalties, taxes, and fees unless the contract expressly characterizes them as part of the price

3) Cancellation Must Be Proper: Form and Timing

A developer’s cancellation is valid only if:

You first get your full grace period (60 days if <2 data-preserve-html-node="true" years; 1 month per paid year if ≥2 years), and
You then receive a notarial cancellation or rescission notice, and 30 days pass from your receipt.

No proper grace period or no notarial notice? The cancellation is defective. Defects can support reinstatement or damages.

4) Refund (CSV) Delays: What You’re Entitled To and When

When the contract is validly cancelled and you are CSV-eligible (≥2 years paid), you’re entitled to your CSV. While the law does not state an exact payout date, agencies and jurisprudence treat CSV as due upon effective cancellation (i.e., after the statutory process). Unreasonable delay can justify:

Specific performance (compel payment of CSV)
Legal interest on the delayed amount (generally 6% per annum from demand or from filing, depending on circumstances)
Damages if you prove loss caused by the delay

If you’re not CSV-eligible under the statute (e.g., <2 data-preserve-html-node="true" years), check your contract—some developers promise partial refunds; those promises are enforceable as contractual rights.

5) How to Compute Your CSV (quick examples)

Rule: CSV = 50% of total payments made, plus 5% per year after the 5th year, capped at 90%.

Example 1 (Year 3 canceller) Total payments (down + installments) = ₱900,000 CSV = 50% × ₱900,000 = ₱450,000
Example 2 (Year 7 canceller) Total payments = ₱1,200,000 Base 50% = ₱600,000 Extra years beyond 5th = 2 years → 2 × 5% = +10% of total payments = ₱120,000 CSV = ₱600,000 + ₱120,000 = ₱720,000 (Check 90% cap: 90% × ₱1,200,000 = ₱1,080,000 → cap not hit)
Example 3 (Year 12 canceller; cap applies) Total payments = ₱2,000,000 Base 50% = ₱1,000,000 Extra years beyond 5th = 7 × 5% = +35% of total payments = ₱700,000 Tentative CSV = ₱1,700,000 90% cap = ₱1,800,000 → not exceeded; CSV = ₱1,700,000 (If computation exceeded ₱1,800,000, cap down to ₱1,800,000.)

Tip: Keep a ledger of every peso you paid that forms part of the purchase price. Your own spreadsheet often becomes decisive evidence.

6) Remedies When Refunds Are Delayed

A. Make a formal demand

Cite RA 6552, your CSV computation, the effective cancellation date, and request release within a definite time (e.g., 10 business days).
State that you will pursue legal interest (6% p.a.) and damages if not paid.

B. Regulatory & adjudicatory routes

Human Settlements Adjudication Commission (HSAC): handles buyer–developer disputes (e.g., to compel CSV payment, challenge defective cancellations, claim damages).
Department of Human Settlements and Urban Development (DHSUD): policy/regulatory oversight; complaints may trigger administrative action (especially if a pattern exists).
PD 957 (Subdivision & Condominium Buyers’ Protective Decree) may provide additional grounds and administrative sanctions for violations by developers of subdivision/condo regulations and licenses.

C. Court action

Specific performance to compel payment of CSV
Rescission/Resolution and damages under the Civil Code
Legal interest of 6% p.a. on sums due (commonly from judicial or extrajudicial demand)
Attorney’s fees and costs, where warranted

D. Negotiation leverage

Developers sometimes propose net-off (CSV minus alleged charges). Insist on itemized, contract-based deductions.
If turnover or title release is also pending, consider a global settlement, but do not waive statutory rights lightly.

7) Timing, Notice, and Documentation Checklist

Eligibility: Confirm if you’ve paid ≥2 years (CSV-eligible).
Grace period: Verify you were given (a) 60 days (<2 data-preserve-html-node="true" years) or (b) 1 month/year (≥2 years).
Notarial notice: Ensure the developer served a notarial cancellation and that 30 days elapsed from your receipt.
Compute CSV: Include down payment, deposits, monthly amortizations; exclude penalties/interest unless counted as price.
Make demand: Set a firm release date, reserve rights to interest/damages.
Escalate: HSAC complaint for specific performance + damages if delayed.
Prescriptive periods (guidance):
- Written contract claims: generally 10 years
- Quasi-delict (tort): 4 years
- Money claims with no period stated: guided by Civil Code and jurisprudence (Discuss precise clocks with counsel; when the clock starts can depend on demand/cancellation dates.)

8) Common Developer Defenses (and How to Counter)

“Reservation fee is non-refundable.” Counter: If the reservation forms part of the price under the contract/receipts, it counts toward “total payments made” for CSV.
“Cancellation already effective by simple letter/email.” Counter: The statute requires notarial notice and a 30-day period from receipt.
“Buyer waived Maceda Law in the contract.” Counter: Statutory rights generally cannot be waived if the waiver defeats the law’s policy; stricter scrutiny applies.
“No CSV because we applied it to penalties.” Counter: Penalties and interest are not automatically deductible from statutory CSV unless the contract and the law allow it. Demand an itemized legal basis.

9) Strategy When You Want Out and Your Money Back

If you’re CSV-eligible:
- Trigger proper cancellation (or accept a developer’s valid cancellation), then demand CSV.
- If the developer won’t cancel properly but you want out, tender a cancellation request referencing the law; you don’t lose rights by insisting on the proper sequence.
If <2 data-preserve-html-node="true" years paid:
- You may wait to cross the two-year threshold (if feasible) to become CSV-eligible, or
- Negotiate a contractual refund (documented) or a transfer of your rights to another buyer (assignment), if the contract allows.
Assignment of rights: The law recognizes your ability to sell or assign your buyer’s rights before valid cancellation. Developers often need to consent but cannot unreasonably withhold it if the contract allows assignments and transferees qualify.

10) Practical Evidence to Keep

Contract to Sell/Deed of Conditional Sale, all addenda and payment schedules
Official receipts (down, monthly amortizations, deposits, taxes if treated as price)
Notarized notices received (envelopes, registry slips, courier proofs, email headers)
Developer brochures/emails promising refunds or grace
Your CSV worksheet (with dates and totals)
Demand letters and any replies

11) Template: Demand for Release of CSV (Refund)

Subject: Demand for Release of Cash Surrender Value under RA 6552 To: [Developer/Seller], [Address/Email]

I purchased [Project/Unit] under [Contract Title/Date, Contract No.] and have paid installments for [X years and Y months], totaling ₱[amount] (including down payment and deposits that form part of the price).

The contract was validly cancelled effective [date] after compliance with the Maceda Law requirements on grace period and notarial cancellation notice. Under RA 6552, I am entitled to a Cash Surrender Value equivalent to [your computation: 50% + additional 5% per year after 5th year, capped at 90%], amounting to ₱[CSV].

Please release the CSV within 10 business days from receipt of this letter, via [mode: check/bank transfer]. Absent timely payment, I will pursue specific performance and legal interest at 6% per annum from [date of this demand], plus damages and attorney’s fees.

Attached are my payment ledger and receipts for verification.

Sincerely, [Name] [Address / Contact]

12) Frequently Asked Questions

Q: Can the developer delay the CSV until the unit is resold? A: The statute doesn’t condition CSV on a resale. Unreasonable delays can be actionable; demand, then escalate.

Q: Do bank-financed buyers have Maceda Law protection? A: If your transaction remains an installment sale with the developer (e.g., before take-out), RA 6552 applies. If you already fully took out with a bank and are now under a pure loan secured by a mortgage, RA 6552 no longer governs that bank relationship (separate rules apply).

Q: What if the developer never notarized the cancellation? A: Then cancellation is defective; you may reinstate upon updating arrears or use this defect to negotiate or litigate better terms.

Q: Does CSV include interest and penalties I already paid? A: Generally no—CSV is based on payments toward the price. But if the contract/receipts explicitly treat certain items as price components, include them (and be ready to justify with documents).

13) Quick Action Plan if Your Refund Is Stuck

Audit: Reconstruct all payments → compute CSV.
Validate: Check grace periods and notarial notice dates.
Demand: Send a firm written demand with your computation and a payment deadline.
Escalate: File at HSAC for specific performance + interest + damages if unpaid.
Negotiate smart: Avoid blanket waivers; insist on itemized deductions.
Mind the clock: Track prescriptive periods and interest accrual.

Closing Note

The Maceda Law gives powerful minimum protections—you can’t be forced to accept less than what the statute guarantees. Your contract may improve on those protections, but it cannot legally undercut them. When a developer drags its feet on your CSV, a clear computation + proper demand + timely escalation usually gets results.