Jestra Development v. Pacifico

Summary

This case involved a real estate installment purchase dispute where buyer Pacifico purchased property from developer Jestra for P2,500,000. After paying P846,600 total (including penalties), Pacifico defaulted on monthly installments. When Jestra cancelled the contract, Pacifico claimed entitlement to cash surrender value under RA 6552. The HLURB, Office of the President, and Court of Appeals initially ruled in Pacifico's favor, computing he had paid equivalent to over 24 months of installments. However, the Supreme Court reversed, holding that the proper computation method showed Pacifico had not paid the required two years of installments to qualify for cash surrender value protection. The Court ruled that after deducting the down payment and penalties from total payments, insufficient installments were made, making Section 4 (not Section 3) of RA 6552 applicable, which allows cancellation after proper notice without refund obligation.