State Investment v. Baculo · G.R. 237934

Petitioner: State Investment
Respondent: Baculo
Citation: G.R. No. 237934
Court: Supreme Court
Decided: June 10, 2024

Validity of rescission of Contracts to Sell under Republic Act No. 6552 (Maceda Law) and compliance with procedural requirements for cancellation of…

Summary

This case involves State Investment Trust Inc.'s attempt to rescind Contracts to Sell with the Baculo spouses for two Quezon City properties after payment defaults. The Supreme Court ruled that SITI failed to comply with Republic Act No. 6552 (Maceda Law) procedural requirements for contract cancellation, specifically the mandatory 60-day grace period, notarial act for cancellation notice, and 30-day waiting period. The Court held the contracts remain valid and gave respondents 60 days to pay the outstanding balance of PHP7.36 million with specified interest rates, after which SITI must execute a deed of sale. Failure to pay within the deadline results in immediate vacation and forfeiture of all payments as rental. The decision balances consumer protection under the Maceda Law with contractual obligations, emphasizing strict compliance with statutory procedures for installment contract cancellations in real estate transactions.

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The Maceda Law (Republic Act 6552)

By the Intellegal Editorial Board · June 10, 2024

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