Remedies of Parties

Remedies of the Seller in case of movables

When the contract of sale is still executory in stage, (there is yet no delivery of the
subject to the buyer), the seller has the right to resell the subject matter of the sale to
another, when the buyer fails to pay the purchase price

RECTO Law: Sales of Movables on Installments

 Installments are when there are at least two (2) stipulated payments in the future,
whether or not there is a downpayment
 Recto law prevents the seller-mortgagee from seizing mortgage property, buying
it at foreclosure sale for a low price, and then bringing the suit against the
mortgager for a Deficiency Judgement. The result would be that the mortgager
would find himself minus the property, and still owing practically the full amount
of his original indebtedness.
 The unpaid seller’s remedies are not cumulative, but Alternative and Exclusive
 The Unpaid Seller’s Remedies are as follows;
o Exact fulfillment of the obligation
o Rescind the sale
o Foreclose the chattel mortgage on the thing sold
 If the seller should foreclose the mortgage constituted on the thing
sold, he shall have no further action to recover any unpaid balance
of the price.

Immovables: Sales of Subdivision Lots and Condominium (PD 957)

PD957 directs every developer of real property to provide the necessary facilities,
improvements, infrastructure, and other forms of development in the subdivision or
condominium.

In case the developer fails in his obligation, the buyer has the option
 to demand reimbursement of the total amount paid, or
 to wait for further development of the subdivision, and suspend payment of the
installment until such time that the developer has fulfilled his obligations. 

In PD 957, the buyers would be justified in suspending payments, when the developer fails
to give a copy of the contract to sell, despite repeated demands. The buyer also has the
right to have a contract to sell registered with the register of deeds to bind third parties.

PD 957 also imposes on the subdivision owner or developer, the obligation to cause the
transfer of the corresponding certificate of title to the buyer upon full payment.
Developers lack of certificate of registration or license to sell, merely subjects it to
administrative sanctions, but do not render the sales entered into on the project null and
void. 

MACEDA LAW: Sales of Residential Realty on Installments (RA6552)

MACEDA Law seeks to protect buyers of real estate on installments, against

onerous and oppressive conditions. It recognizes the seller's right to cancel the conditional
contract of sale, upon non-payments of installment by the buyer, which is simply an event
that prevents the obligation of the vendor to convey title to the buyer. 

The cancellation can be effected as follows;

1. The seller should extend the buyer a grace period of at least sixty days from the
due date of the installment
2. The end of the grace period, the seller shall furnish the buyer, with a notarial
notice of cancellation, or demand for rescission, effective thirty days from receipt
thereof.
3. For contracts covering more than two years of payments, there must be a return to
the buyer of the cash surrender value. 

Until and unless the seller complies with these mandatory requirements, the contract
to sell remains valid and subsisting. 

 Take note that the decision rendered in an ejectment case operates as the required
notice of cancellation over the MACEDA Law.
 Note also that a formal letter demand upon buyer to vacate the premises is not the
same as the notice of cancellation or a demand for rescission, by a notarial act
required by MACEDA LAW.
 Note further that the filing of an unlawful detainer case by the seller does not exempt
him from complying with the said requirements.