By Carla Calleja, MBA, REB | National President, REBAP 2026 | October 5, 2026
The Law That Stands Between You and Losing Everything You Have Paid Is Being Rewritten.
If you are paying for a condo, a house and lot, or a lot on installment — the Maceda Law is what protects you. Republic Act No. 6552, enacted in 1972 and authored by the late Senator Ernesto Maceda, has governed the rights of every Filipino buying real estate on installment for over 54 years. It sets the grace period you get when you miss a payment. It sets how much you get back if your contract is cancelled. It is, in many ways, the single most important law in the life of every installment property buyer in the Philippines.
Right now, the Senate is in the process of amending it. And the outcome will affect millions of Filipinos — homebuyers, OFWs paying amortization from abroad, investors, and the families waiting for the title to their homes.
This is what has happened so far, what each proposal means for you, and where things stand today.
How We Got Here: A Timeline
1972 — The Original Maceda Law (RA 6552)
Senator Ernesto Maceda authored RA 6552, which was signed into law before Martial Law was declared — making it the last piece of legislation signed before that era began. The law established three core protections for installment buyers: a proportional grace period (one month per year of payments made), a cash surrender value upon cancellation (starting at 50%, rising to 90%), and the requirement for notarial notice before any contract could be cancelled. For 54 years, this law — with all its gaps — has been the primary protection of every Filipino paying for a property on installment.
September 2025 — Senate Bill No. 1377 is Filed
Senator JV Ejercito filed Senate Bill No. 1377, titled the Realty Installment Buyer Protection Act, proposing comprehensive amendments to RA 6552. The Bill introduced statutory definitions for the first time, multi-modal electronic notice, a title transfer mandate, and a delinquency penalty cap. These are genuine modernizations that address documented gaps in the original law.
However, a close reading of SBN 1377 also reveals a series of changes that — while perhaps unintentional — would significantly reduce the protections buyers have under the current law. The grace period is reduced from a proportional formula to a flat 30 days. The refund formula shifts from a buyer-protective sliding scale to a deduction-based computation. Down payments and deposits, which the original law explicitly includes in the refund base, are explicitly excluded. The cancellation period is cut from 30 to 15 days.
April 23, 2026 — Senate TWG on Housing
The Senate Committee on Urban Planning, Housing and Resettlement convened a Technical Working Group on Housing to deliberate on SBN 1377. Stakeholders from across the real estate sector — including REBAP, represented by National President Carla Calleja — participated via hybrid session chaired by Mr. Mark Gamboa of the Office of Senator Chiz Escudero. REBAP submitted Position Paper REBAP-2026-PP-003, a provision-by-provision analysis grounded in a nationwide member survey of 1,880+ licensed broker-members across 54 chapters, formally placing on record the concerns of the licensed brokerage profession.
October 1, 2026 — Senate Bill No. 2504 is Sponsored at Plenary
Senator Francis “Chiz” Escudero, Chairman of the Senate Committee on Urban Planning, Housing and Resettlement, stood at the plenary and sponsored Senate Bill No. 2504 — a separate Maceda Law amendment bill. In doing so, he made the Committee’s position clear: “One missed payment should be a setback, not the end of the road toward owning a home.” SBN 2504 takes a markedly more buyer-protective approach than SBN 1377, retaining the proportional grace period formula, preserving the original refund sliding scale, and introducing specific penalties on sellers who delay refunds or title transfers.
What the Two Bills Mean for You — Side by Side
Here is how the three versions of the Maceda Law compare on the provisions that matter most to every Filipino buyer:
| Provision | RA 6552 — Maceda Law (1972) | SBN 1377 — Sen. JV Ejercito | SBN 2504 — Sen. Chiz Escudero |
|---|---|---|---|
| Grace Period (2+ yrs paid) | 1 month per year paid | Flat 30 days ⚠ | 1 month per year paid ✓ |
| Grace Period (<2 yrs paid) | 60 days (Sec. 4) | Silent — gap ⚠ | 60 days ✓ |
| Refund Formula | 50–90% of total payments | Deduction-based; can yield near-zero ⚠ | 50–90% sliding scale retained ✓ |
| Down Payments in Refund Base | Included (explicit in Sec. 3) | Excluded — direct reversal ⚠ | Included — consistent with RA 6552 ✓ |
| Buyer Options During Grace | Assign or pay in full | Assignment requires seller concurrence ⚠ | Assign, prepay, or settle — no surcharges ✓ |
| Cancellation Notice Period | 30 days from receipt | 15 days ⚠ | Not yet confirmed |
| Title Transfer Timeline | No mandate (annotation right only) | 30 days — institutionally impossible ⚠ | 120 days — realistic ✓ |
| Penalty for Delayed Refund | None | General 50% market value fine | 1.5%/month on amount owed ✓ |
| Penalty for Delayed Title Transfer | None | 50% market value fine | 0.05% of contract price/month ✓ |
| Delinquency Penalty Cap | None | 1.5%/month ✓ | Capped ✓ |
| No Penalties During Grace | Not specified | Explicit ✓ | Explicit ✓ |
What This Means in Real Life
If you are a buyer paying on installment today
Under the current Maceda Law, if you have been paying for five years and miss a payment, you are entitled to five months of grace. Under SBN 1377 as filed, that same buyer gets 30 days — regardless of how long they have paid. Under SBN 2504, the proportional formula is restored: five years paid still means five months of grace.
On the refund: if your contract is cancelled after seven years of faithful payments under SBN 1377, the seller could deduct 84 months of rental charges plus up to 30% in liquidated damages from what you are owed — potentially leaving you with little to nothing. Under SBN 2504, the original formula applies: you are entitled to at least 50% of what you paid, rising to higher percentages the longer you have been paying.
If you are an OFW paying amortization from abroad
OFWs are among the most vulnerable buyers under a shortened grace period. A job loss, a delayed remittance, a sudden medical expense — any of these can cause a missed payment. Under SBN 1377, 30 days is not enough time for an OFW in Saudi Arabia or Japan or the UAE to arrange a transfer, coordinate with family, or contact their developer. Under SBN 2504’s proportional formula, an OFW who has paid for three years has three months to recover — a far more humane and realistic window.
If you are an investor or developer
SBN 1377’s 30-day title transfer mandate is not just a problem for buyers — it is a compliance trap for sellers. The BIR requires a minimum of two to four weeks to process the Certificate Authorizing Registration after receiving a complete filing. The Registry of Deeds then needs a minimum of 45 working days under LRA service standards. A 30-day mandate from full payment puts every developer in automatic violation through no fault of their own. SBN 2504’s 120-day window — with specific monthly penalties for unjustified delays — is enforceable, proportionate, and grounded in how government agencies actually operate.
What Is Still at Stake as the Bills Move Toward Consolidation
The two bills will likely be consolidated in the Technical Working Group before proceeding to committee report and plenary approval. The better provisions of SBN 2504 — the proportional grace period, the preserved refund formula, the seller penalty regime, the realistic title transfer timeline — should carry through. But several concerns remain unresolved in both bills as filed:
- The “Residential Farm Lot” classification error. SBN 1377 includes farm lots in the definition of Residential Property. Under RA 9646 (RESA), farm lots are classified as Agricultural — a legally distinct category. This must be corrected before any bill is passed.
- Sub-threshold buyer protection gap. SBN 1377 is silent on the rights of buyers who have paid less than 30% of the contract price. The original RA 6552 Section 4 gave these buyers a 60-day grace period. That protection must not disappear in consolidation.
- Restructuring engagement. Neither bill expressly requires sellers to respond to a buyer’s request for a payment holiday, term extension, or step-down amortization during the grace period. Many cancellations could be avoided if sellers were legally obligated to engage in good faith.
- Mandatory broker participation. Neither bill requires a licensed real estate broker’s signature on Contracts to Sell and Deeds of Sale. Most of the disputes both bills seek to address arise from transactions facilitated without a licensed professional — inadequate disclosure, buyers committing beyond their capacity, defective contract terms. Professional accountability at the point of signing is the most direct way to prevent these disputes before they begin.
REBAP’s Role and Our Continuing Engagement
REBAP formally participated in the April 23 TWG hearing and submitted Position Paper REBAP-2026-PP-003 — a comprehensive analysis of SBN 1377 grounded in input from licensed broker-members across 54 chapters nationwide. Our position: support passage with specific and material amendments that ensure the final law strengthens, rather than weakens, buyer protections.
As the only nationwide organization exclusively composed of licensed real estate brokers — the professionals who facilitate these transactions every day — REBAP will continue to engage the Senate as the two bills move toward consolidation. We will keep tracking the legislative process, providing technical inputs, and representing the interests of both the buyers we serve and the professional standards we are bound to uphold under RA 9646.
If you are a buyer, an OFW investor, a developer, or a broker with questions about how the proposed Maceda Law changes may affect your transaction or your practice — reach out. This is exactly the kind of guidance a licensed broker is here to provide.
Carla Calleja, MBA, REB
National President, REBAP 2026
Licensed Real Estate Broker | PRC License 0021912
info@carlacalleja.com
Sources & References:
Manila Times: Escudero pushes reform of realty installment law (Oct. 2, 2026)
SunStar: Senator seeks stronger protection for installment homebuyers (Oct. 1, 2026)
Journal News: Escudero bill would fine sellers for late refunds, title transfers (Oct. 1, 2026)
Manila Standard: REBAP at the Senate — SBN 1377 TWG Hearing
REBAP Position Paper REBAP-2026-PP-003 | Senate Committee on Urban Planning, Housing and Resettlement | April 2026
