Senator Francis “Chiz” Escudero is pressing for amendments to Republic Act No. 6552 or the Realty Installment Buyer Act, saying the 54‑year‑old law must be updated to fit today’s housing and financial landscape.
Escudero, chair of the Senate Committee on Urban Planning, Housing and Resettlement, said families face unfair treatment under the current framework, and told colleagues that a single missed payment should not erase years of hard work and investment toward owning a home.
“In pushing this bill, we give Filipino homebuyers a better chance of making it to the finish line—and finally calling the home they have worked and paid for their own. One missed payment should be a setback, not the end of the road toward owning a home,” he said.
At Tuesday’s plenary, the veteran legislator sponsored Senate Bill No. 2504, which he said will expand protections for Filipino homebuyers who purchase real estate on installment.
RA 6552 was enacted in 1972 and authored by the late Senator Ernesto Maceda, earning it the popular name Maceda Law. The landmark measure established grace periods, refund entitlements, and safeguards against arbitrary cancellation of contracts.
While the law was groundbreaking in its time, “it must now be strengthened to reflect the realities faced by today’s homebuyers,” according to Escudero.
The proposed amendments expand grace periods and refund entitlements. Buyers who have paid at least two years will enjoy a month’s grace for every year of payments made, plus a cash surrender value starting at 50 percent and rising by 5 percent annually after five years, up to 90 percent. Those with less than two years of payments will be entitled to a 60‑day grace period.
The senator explained that the bill also gives buyers more options before cancellation. During the grace period, they may transfer or assign their rights, settle installments in advance, or pay the balance in full without surcharges.
The proposal requires cancellations to be executed by notarial act, effective only after the 30‑day period and refund payment. Delayed refunds will carry a penalty of 1.5 percent per month. Sellers must also transfer and register ownership within 120 days of full payment, with unjustified delays penalized at 0.05 percent of the contract price per month.
Escudero emphasized that ceilings on delinquency penalties will be set, and none may be imposed during the grace period.