Practice question
A covered buyer paid only one qualifying year. The seller completes section 4’s grace and notarial-notice requirements. The buyer claims section 4 itself always mandates a fifty-percent refund. No other contractual or legal refund ground is asserted. What is correct?
- Every defaulting buyer receives fifty percent regardless of the paid-installment threshold.
- Section4 does not itself automatically grant section 3’s fifty-percent cash surrender value to the stipulated less-than-two-year buyer.
- A refund is forbidden under every possible other law or agreement.
- The buyer necessarily owns the property despite unpaid price.
- Section4 eliminates the notice requirement if no refund is due.
Legal references
- https://lawphil.net/statutes/repacts/ra1972/ra_6552_1972.html — RA 6552, sections 3–5 and7.
- https://lawphil.net/judjuris/juri2007/jan2007/gr_167452_2007.html — Jestra Development v Pacifico, GR 167452, January 30 2007, main opinion: section 4 two-step cancellation.
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