- Petitioner
- Active Realty
- Respondent
- Daroya
- Citation
- G.R. No. 141205
- Court
- Supreme Court
- Decided
- May 9, 2002
Validity of contract cancellation and buyer's rights under the Maceda Law in real estate installment sales
Summary
This case involves real estate installment buyer protection under the Maceda Law. Active Realty attempted to cancel its contract with overseas worker Necita Daroya after she defaulted on payments, despite her having paid more than the contract price over four years. The Supreme Court found the cancellation invalid because petitioner failed to comply with mandatory requirements under RA 6552: sending notarized cancellation notice and paying cash surrender value. Since the lot was resold to another buyer, the Court ordered petitioner to refund the actual lot value of P875,000.00 with interest or provide a substitute lot. The decision reinforces buyer protection against onerous developer practices and emphasizes strict compliance with Maceda Law procedures for valid contract cancellations.