Question

What is covered under the MACEDA LAW/RIBA?

Answer 1

Step-by-step explanation:

The Maceda Law, officially known as the “Realty Installment Buyer Protection Act”, is a law in the Philippines that protects buyers of real estate on installment payments against onerous and oppressive conditions. It covers transactions related to the purchase or financing of houses, lots, and condominium units. However, it does not apply to industrial lots, commercial buildings, or sales to tenants under R.A. No. The law provides protection for buyers who default on payments for such purchases, entitling them to a refund and grace periods.

On the other hand, RIBA (Royal Institute of British Architects) requires its members to hold suitable insurance to cover potential liabilities arising from negligence or breach of contract associated with professional activities. This is often referred to as Professional Indemnity Insurance (PII). However, the availability and affordability of PII have changed significantly, especially after the Grenfell Tower fire. The insurance covers risks such as breach of a contractual obligation to exercise reasonable skill, care, and diligence when carrying out design. However, there have been challenges in securing this insurance, with increasing premiums and growing sets of exclusions, particularly in relation to cladding and fire safety claims.

Answer 2

Step-by-step explanation:

The Maceda Law, also known as the Republic Act No. 6552 or the Realty Installment Buyer Act (RIBA), provides protection to buyers of real estate properties on installment payments. It specifically covers residential properties, including house and lot, condominium units, and other forms of dwellings.

Under the Maceda Law/RIBA, the following are covered:

1. Installment Sale Transactions: The law applies to purchase agreements where the total purchase price of the real estate property is paid on installment basis, either in money or through financing.

2. Default and Foreclosure: The law imposes certain restrictions on the rights of the seller in case the buyer defaults on payment. It provides the buyer with a grace period to settle their obligations and avoid foreclosure of the property.

3. Pre-Selling Transactions: The Maceda Law also covers pre-selling transactions, where buyers make payments for properties that are still under construction or development. The law mandates specific requirements and safeguards to protect the interests of the buyer in these cases.

4. Prohibited Provisions: The law prohibits certain provisions in contracts that are unfair to the buyer. For instance, it disallows the automatic cancellation of installments and forfeiture of installments already paid, as long as the buyer has paid at least two years of installments.

5. Buyer's Rights: The Maceda Law grants certain rights to the buyer, such as the right to fully paid receipts, the right to occupy the property upon full payment of at least two years of installments, and the right to refund the amount paid in case of contract cancellation.

It's important to note that while the Maceda Law/RIBA provides safeguards and protections for buyers, it's advisable to consult legal professionals or experts for specific advice regarding your situation, as the application of the law may vary depending on certain factors and circumstances.