- Petitioner
- Orbe
- Respondent
- Filinvest Land
- Citation
- G.R. No. 208185
- Court
- Supreme Court
- Decided
- September 6, 2017
Whether buyer who paid less than two years' worth of installments under Republic Act No. 6552 (Maceda Law) is entitled to refund and whether seller's…
Summary
This case involves the interpretation of Republic Act No. 6552 (Maceda Law) regarding refund rights of defaulting real estate buyers. Orbe purchased a lot from Filinvest on installment but defaulted after paying P608,648.20 over three years. The Supreme Court clarified that 'at least two years of installments' under Section 3 means paying the equivalent value of 24 monthly installments, not merely making payments for two years. Since Orbe paid only 21.786 months' worth, she couldn't claim Section 3 benefits. However, Filinvest's cancellation was invalid due to improper notarization using a jurat instead of acknowledgement and invalid identification. The Court ordered Filinvest to refund Orbe's actual payments with interest, establishing important precedents on Maceda Law interpretation and notarial requirements for contract cancellations.
Intellegal Wiki · Key Holding
Partially granted; 'two years of installments' under the Maceda Law means the value of 24 monthly payments, and a cancellation notarized by jurat instead of acknowledgement is void, requiring a refund with interest.
An editorially maintained summary of the rule this Supreme Court decision is cited for — not legal advice.