Flashcards Studio

Zenith Realty, Inc. enters into a written contract with Pioneer Properties, Inc. for the sale of a subdivided residential lot measuring 1,500 square meters for PHP 9,600,000. The purchase price is payable in 48 equal monthly installments after a down payment of 25%. Legal title to the lot remains with Zenith until full payment, but Pioneer takes possession and begins improvements on the lot. Pioneer has paid 26 installments and then defaults on the 27th installment. (a) Is this installment sale a “transaction covered” by the Realty Installment Sales Act (R.A. No. 6552)? (b) If yes, outline the scope of “transactions covered” under RA 6552 and identify the controlling rule that applies to such installment sales. (c) What is the effect on the parties’ rights and remedies under RA 6552 when the purchaser defaults?