- Petitioner
- Olympia Housing
- Respondent
- Panasiatic Travel
- Citation
- G.R. No. 140468
- Court
- Supreme Court
- Decided
- January 16, 2003
Validity of rescission of Contract to Sell for condominium unit due to buyer's default on installment payments under Republic Act No. 6552
Summary
Olympia Housing filed an action for recovery of possession against Panasiatic Travel Corporation and Ma. Nelida Galvez-Ycasiano over a condominium unit sold under a Contract to Sell for P2,340,000.00. The buyer defaulted on monthly installments, prompting the seller to claim rescission by notarial act. The Supreme Court denied the petition, ruling that no valid rescission occurred under Republic Act No. 6552 (Maceda Act). The Court held that the seller failed to comply with statutory requirements: (1) proper notarial act of rescission, and (2) payment of cash surrender value to the buyer. The June 2, 1988 demand letter was insufficient as it merely threatened future cancellation rather than effectuating actual rescission. The decision affirmed the trial court's order requiring the buyer to pay the outstanding balance, emphasizing the protective nature of RA 6552 for installment buyers. This case clarifies the strict compliance required for valid contract rescission under the Maceda Act and distinguishes actions for recovery of possession from actions for contract annulment.