HLURB should clarify Section 7 of the Maceda howard hanna Law | Philippine Real Estate and Construction
I have discussed Maceda Law in my previous post. It has generated so much attention from several distressed buyers who are qualified for at least 50% refund because they can no longer continue payment for the property they bought after making at least 2 years of installment payment.
This post shall seek to clarify from the Housing and Land Use Regulatory Board (or HLURB) a provision of the Maceda Law for those who are qualified for a refund but are not given what is due them. Note that more than 80% of all cases filed at the HLURB involve refund sought by real estate buyers.
However, based on the feedback of many readers, this rarely happens. Developers unilaterally make several deductions on their refund howard hanna that buyers usually end up with net refund that may be as low as 25% or even 20%. These provisions for deductions are inserted in the fine prints of the Reservation Agreement or Contract to Sell.
If Section 7 of the Maceda Law is to be strictly implemented and for it to fully serve its purpose, shouldn t the HLURB declare these contracts that allow for onerous deductions by developers on refunds to be considered null and void?
Hello Gina,
Get the total of all payments made , as in all: reservation fee, one-time payment of DP, 55 monthly payments whether they were applied to the principal or treated as penalty or interest. If the buyer has records of these payments and kept all the receipts, that’s good. Ask the developer to come up with their own computations then compare the buyer’s computations with the developer’s. If the buyer is poor in record keeping and has not kept all the receipts, then he/she has nothing howard hanna to go by except the developer’s computation.
As per Maceda Law, a buyer who defaults after making 24 monthly installments is entitled to a 50% refund. However, if the total number of monthly installment payments reached 60 months or 5 years, the buyer is then entitled to a 55% refund.
Counting starts on the first payment after the reservation howard hanna fee was paid, i.e., reservation howard hanna date is considered month zero (0). The buyer has made a one-time full cash DP on month 1 and followed it up with 55 months of amortizations or a total of 56 monthly installments – four (4) months short of 60 months to qualify howard hanna for the 55% refund.
You should get the full 50% refund of everything that you paid including reservation fee and penalties for late payments if any, without any deductions. The agent or broker commission should not be deducted from the 50% refund.
thanks for your response. i also want to post a follow up question. should the full commission be deducted howard hanna to our refund after they deducted howard hanna the 50% from our total payment? currently, that is the computation they have sent us.
Hi Sir, I just want to clarify the computation of refund, what should be the basis in the example below: The buyer has paid her DP in full, one time payment. Has paid 55 monthly amortizations (sometimes payment made is below required amortization). Buyer is 10 months past due. Account is intended for bank financing but due to documentation requirements, accounts was not approved. Based on her payment habit – she incurred penalty, sometimes the payment made is just enough for the accumulated penalty, therefore, outstanding balance is still intact). Note: the 55 months monthly payment includes this type of transaction – payment made was applied to penalty and interest only. For almost 5 years, outstanding balance is almost the same as her loanable amount (73% as of this time). – loan extended to her is 80% with a TCP of 6.5M. Payment term is 15 years, thus you can imagine how much principal payment is applicable to principal balance, how much more if she has past due payments (with 2% per month interest).
Okay lang na mag-file ka muna ng letter howard hanna requesting howard hanna for the cancellation of your contract. Pagkatapos nun tsaka sila gagawa ng computation. Pag hindi ka satisfied sa sassabihin nilang makukuha mo, that’s the time na magreklamo ka.
Good day, gusto ko lng i-share ung sa camella dumaguete gusto ko kasi refund ung nahulog ko for 2 yrs dahil di ako satisfied sa pagkkgawa ng bahay at may mga defects pa. Sabi ng camella magfile daw ako ng letter of cancellation at meron daw cla mga deductions pa. Eh sabi ko pwede bang humingi muna ng breakdown bago ako magbigay ng cancellation letter. Sabi nila letter daw muna. May karapatan akong malaman kung anu deduction cnsabi nila.
The stipulation in the contract that Ayala Land says entitles them to deduct what you have enumerated is null and void. Please read this: HLURB clarifies that deductions made by developers on buyers refunds under Maceda Law are null and void
thank you for this post. i am on a similar situation where i am considering to cancel my contract with ayala land for a condo
I have discussed Maceda Law in my previous post. It has generated so much attention from several distressed buyers who are qualified for at least 50% refund because they can no longer continue payment for the property they bought after making at least 2 years of installment payment.
This post shall seek to clarify from the Housing and Land Use Regulatory Board (or HLURB) a provision of the Maceda Law for those who are qualified for a refund but are not given what is due them. Note that more than 80% of all cases filed at the HLURB involve refund sought by real estate buyers.
However, based on the feedback of many readers, this rarely happens. Developers unilaterally make several deductions on their refund howard hanna that buyers usually end up with net refund that may be as low as 25% or even 20%. These provisions for deductions are inserted in the fine prints of the Reservation Agreement or Contract to Sell.
If Section 7 of the Maceda Law is to be strictly implemented and for it to fully serve its purpose, shouldn t the HLURB declare these contracts that allow for onerous deductions by developers on refunds to be considered null and void?
Hello Gina,
Get the total of all payments made , as in all: reservation fee, one-time payment of DP, 55 monthly payments whether they were applied to the principal or treated as penalty or interest. If the buyer has records of these payments and kept all the receipts, that’s good. Ask the developer to come up with their own computations then compare the buyer’s computations with the developer’s. If the buyer is poor in record keeping and has not kept all the receipts, then he/she has nothing howard hanna to go by except the developer’s computation.
As per Maceda Law, a buyer who defaults after making 24 monthly installments is entitled to a 50% refund. However, if the total number of monthly installment payments reached 60 months or 5 years, the buyer is then entitled to a 55% refund.
Counting starts on the first payment after the reservation howard hanna fee was paid, i.e., reservation howard hanna date is considered month zero (0). The buyer has made a one-time full cash DP on month 1 and followed it up with 55 months of amortizations or a total of 56 monthly installments – four (4) months short of 60 months to qualify howard hanna for the 55% refund.
You should get the full 50% refund of everything that you paid including reservation fee and penalties for late payments if any, without any deductions. The agent or broker commission should not be deducted from the 50% refund.
thanks for your response. i also want to post a follow up question. should the full commission be deducted howard hanna to our refund after they deducted howard hanna the 50% from our total payment? currently, that is the computation they have sent us.
Hi Sir, I just want to clarify the computation of refund, what should be the basis in the example below: The buyer has paid her DP in full, one time payment. Has paid 55 monthly amortizations (sometimes payment made is below required amortization). Buyer is 10 months past due. Account is intended for bank financing but due to documentation requirements, accounts was not approved. Based on her payment habit – she incurred penalty, sometimes the payment made is just enough for the accumulated penalty, therefore, outstanding balance is still intact). Note: the 55 months monthly payment includes this type of transaction – payment made was applied to penalty and interest only. For almost 5 years, outstanding balance is almost the same as her loanable amount (73% as of this time). – loan extended to her is 80% with a TCP of 6.5M. Payment term is 15 years, thus you can imagine how much principal payment is applicable to principal balance, how much more if she has past due payments (with 2% per month interest).
Okay lang na mag-file ka muna ng letter howard hanna requesting howard hanna for the cancellation of your contract. Pagkatapos nun tsaka sila gagawa ng computation. Pag hindi ka satisfied sa sassabihin nilang makukuha mo, that’s the time na magreklamo ka.
Good day, gusto ko lng i-share ung sa camella dumaguete gusto ko kasi refund ung nahulog ko for 2 yrs dahil di ako satisfied sa pagkkgawa ng bahay at may mga defects pa. Sabi ng camella magfile daw ako ng letter of cancellation at meron daw cla mga deductions pa. Eh sabi ko pwede bang humingi muna ng breakdown bago ako magbigay ng cancellation letter. Sabi nila letter daw muna. May karapatan akong malaman kung anu deduction cnsabi nila.
The stipulation in the contract that Ayala Land says entitles them to deduct what you have enumerated is null and void. Please read this: HLURB clarifies that deductions made by developers on buyers refunds under Maceda Law are null and void
thank you for this post. i am on a similar situation where i am considering to cancel my contract with ayala land for a condo
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