Are transactions between landowner and developers involving installment sales covered by RA 6552?

 This post is deep into a proposed transaction in an island province.  This involves only 5 hectares but the price is staggering 9 numbers, the biggest I will encounter in my business life

Noted in the project and I propose that we back out:

1.  The margin is very little.  Some projects can be had for smaller amount

2.  We will be a minority; but we have the intellectual property on the project

3.  But the greatest obstacle of all is the inclusion of forfeiture provision under RA 6552 or Maceda law.  It says that if you default in your installments, the owner through a notarial cancellation can forfeit all the installments that have been made.   The installments  that are to be made is monthly and this post maintains it is to be quarterly.   Since the corporation is undercapitalized vs the size of the purchase, swallowing the whale as it were would be a failure.   It is 60% sure, with the risk involved in the project, ie the marketing and financial risk that we would totally ruin ourselves  Probably lose the  P30 million we would make as dp, and probably P15M on MA

Our PO position is that it is covered.   Other lawyers we talked said it is not.   The internet post says that the said law only covers residential installment, and not agricultural, commercial or industrial.  I am just wondering why our would be co incorporators placed such an adverse provision??

THEREFORE WE AVOID CTS BECAUSE THIS IS COVERED AND constitutes a great riks for us the developer -  the installments can be zeroed out by mere letter of a lawyer.  And is subject to VAT as may be classified by BIR as capital goods and subject to 12% vat.

Stick to our position as JV only especially if the MP is partially developed.  PHL transaciton tax on Real Estate is designed to 1.  up zonal valuation  regularly and thus increase tax uptake for local and national tax agencies;    2.  up the tax take on sales (but does nothing to improve the lot of the texpayer   Clearly just to up tax take of the govt

[ REPUBLIC ACT NO. 6552, September 14, 1972 ]

AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. This Act shall be known as the "Realty Installment Buyer Protection Act".

SEC. 2. It is hereby declared a public policy to protect buyers of real estate on installment payments against onerous and oppressive conditions.

SEC. 3. In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants under Republic Act Numbered Thirty-eight hundred forty-four as amended by Republic Act Numbered Sixty-three hundred eighty-nine, where the buyer has paid at least two years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments: