Preview

Maceda and Recto Law

Powerful Essays
Open Document
Open Document
1382 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Maceda and Recto Law
These two laws are relevant and are very often the issue of many court cases. Both laws govern the sale of property by installments. The Recto Law, which forms part of the Civil Code, covers installment sales of personal property while the Maceda Law governs installment sales of real property.

The Recto Law

The Recto Law comprises Articles 1484 to 1486 of the Civil Code. It was added to the Civil Code to prevent abuses in the foreclosure of chattel mortgages, such as when mortgagee-creditors foreclosed mortgaged property, bought them at a low price (on purpose,) then prosecuted the mortgagor-debtors to recover the deficiencies.

In the event a buyer of personal property defaults by failing to pay two or more of the agreed installments, the seller can do any of the following:

1.) Demand that the buyer pay (a.k.a. specific performance)

2.) Cancel or rescind the sale

3.) Foreclose the mortgage on the property bought (if there ever was a chattel mortgage)

Regarding no. 3, this happens when a person takes a loan to buy something and he mortgages the thing he bought to ensure the creditor that he will pay the loan. Remember: If you choose one remedy, you can't choose the others. These remedies, believe it or not, are also available to the buyer. You also can't use all or any of them at the same time. The Recto Law also won't apply to a straight sale (i.e. a sale where there is a downpayment and the balance is payable in the future in a single payment only.) The seller can also assign his credit to another person, making that person the new creditor.

If the buyer refuses to surrender the items to the seller, he becomes a perverse buyer-mortgagor. When that happens, the seller can recover expenses and attorney's fees.

The Recto Law also covers leases with the option to purchase.

The Maceda Law

The Maceda Law, RA 6552, is the real estate equivalent of the Recto Law. Like the Recto Law, it also covers financing of sales of real property (which

You May Also Find These Documents Helpful

  • Good Essays

    While a right of recovery was still pending, the judge erred in granting summary of judgment. The order of Certiorari was granted as the court considered a real estate sales contract as one that allows payment of earnest money. The court held that this was a provision of liquidated damages. The Court of Appeals held that such a provision in a contract of sale was a penalty and could not be enforced under Georgia laws. The court…

    • 456 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    LP 5.1

    • 351 Words
    • 2 Pages

    A “sale” defined in the UCC Article 2 Section 2-106 consists of the passing of title from the seller to the buyer fr a price.…

    • 351 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Another other law is Property law, Property law is where if a man's house has been broken into to be robbed and if is not caught the man who has been…

    • 299 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Businesslawweek5

    • 498 Words
    • 2 Pages

    6. Article 6 – Buyers must notify creditors providing credit to the seller must take measures to ensure that the seller pays stated debts when the buyer pays for their products.…

    • 498 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    AoC DBQ

    • 1217 Words
    • 1 Page

    people who bought this land helped to pay off the debt. The land ordinance also promoted…

    • 1217 Words
    • 1 Page
    Better Essays
  • Good Essays

    Tax 2011 Chapter 10

    • 13409 Words
    • 97 Pages

    When the property disposed of is subject to a liability and the buyer assumes the liability, the relief of debt increases the amount realized. Thus, Potomac’s amount realized consists of $450,000, which is cash of $325,000 plus $125,000 relief of debt. This assumes that the buyer hypothetically transfers cash to the seller in order to pay off the mortgage.…

    • 13409 Words
    • 97 Pages
    Good Essays
  • Good Essays

    Blaw

    • 3523 Words
    • 15 Pages

    Question 3. Refer to the provisions from the Sale of Land Act 1962 (Vic). Suppose that, on Monday 4th March 2002 Cassandra attends a publicly advertised auction and bids $100,000 for an apartment in Parkville. The auctioneer accepts her bid and Cassandra signs the contract of sale. That same afternoon Cassandra regrets what she has done and wants to terminate the contract. On the basis of the information contained in the Act, can she?…

    • 3523 Words
    • 15 Pages
    Good Essays
  • Good Essays

    Lincoln Case

    • 380 Words
    • 2 Pages

    The first thing to look at is what the difference between nonrecourse and recourse notes is. A nonrecourse note is a note that prohibits the lender from attempting further restitution from the borrower in case of default. This means that the lender may not receive further compensation for a default loan. The lender can only take back the item that was loaned as compensation for a default. In a recourse loan, the lender may go after other forms of compensation for a default on the note. This may include assets the borrower has, such as wages, land, and property.…

    • 380 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Advertising companies often attempt to push a product onto a customer. The Onion, a publication devoted to humor and satire, effectively mocks marketing companies through rhetorical strategies.…

    • 487 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Contract Law: Case Summary

    • 1728 Words
    • 5 Pages

    13. Default: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, [*505] or both, or (b) terminate this contract and retain the entire deposit specified in paragraph 3A as liquidated damages, thereby releasing both parties from this contract. If, due to…

    • 1728 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    a) A bill of sale conveying the business sold herein, free and clear of any liens, mortgages, debts or encumbrances except as otherwise provided for herein;…

    • 2603 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Abandoned House Ebook

    • 4974 Words
    • 20 Pages

    can be real property or personal property. The most FIGURE 5 types are: goods, instruments, chattel paper, documents, accounts, general intangibles, and rental property. Anything attached or expressed as collateral under a Deed, Lien, or other type of Security Agreement. Foreclosure - the way by which one disposes of personal property to receive rights to or possession of collateral Legal Description - A formal description identifying real property including any part subject to an easement or reservation, complete enough that a particular piece of land can be located and identified. It includes metes and bounds, or lot numbers of a recorded plat. Mortgage Deed - A deed that conveys title to property that is given as security (collateral) for the payment of a debt or performance of a duty. Operation of law - The means by which a right or a liability is created for a party regardless of the party’s actual intent. Personal property - Any movable or intangible thing that is subject to ownership and not classified as real property. [Blacks Law 8th] See the definition of collateral Real Property - Land and anything growing on, attached to, or erected on it, excluding anything that may be severed without injury to the land. [Blacks law 8th] Houses and real-estate are classified as real property Security Agreement - An agreement that creates or provides for an interest in…

    • 4974 Words
    • 20 Pages
    Good Essays
  • Good Essays

    Dan is a trained paralegal who works for Erie Bank in Lakewood, Ohio. One day, Mary walks into the bank to apply for a mortgage loan to purchase a new house. She and Dan have a long conversation about Mary taking out a mortgage. Mary is concerned that were she to default on her loan, her credit would be destroyed. In response, Dan tells her:…

    • 1251 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Rawls vs. Nozicks

    • 302 Words
    • 2 Pages

    c. You agree to sell your car to someone with an agreement of monthly payments setup. The purchaser fails to pay the payments so you take back the car. You are considered morally allowed to own that car.…

    • 302 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Property Crimes

    • 623 Words
    • 3 Pages

    In the state of Maryland code the property crimes are explained in very detailed description.…

    • 623 Words
    • 3 Pages
    Good Essays