A entered into a contract to sell over a residential lot. He has already paid more than 2 years installments. Thereafter, he failed to pay. What right does A have if the contract is cancelled?
A)He has the right of reimbursement of all his payments regardless of the number of years of payment.
B)He has the right to seek for a grace period of 1 month for every year of installment payments.
C)He has the right of refund of the cash surrender value of the payments on the property equivalent to 50% of the total payments made.
D)He has the right of reimbursement of 100% of his installments after payment for five (5) years.

Question

Quizplus · Accepted Answer

Under the Maceda Law (Republic Act No. 6552), a buyer of real estate on installment payments who has paid at least two years of installments is entitled to a refund of the cash surrender value of his total payments made in case of cancellation due to his failure to continue payments. This cash surrender value is equivalent to 50% of the total payments made, and this percentage increases after five years of installments.

A Entered into a Contract to Sell Over a Residential