Is Pasalo (Assume Balance) Safe? What to Check Before You Pay
A pasalo is safe only when the developer or lender approves the transfer in writing. Under Article 1293 of the Civil Code, a new debtor cannot take the original buyer’s place without the creditor’s consent, so a notarized private paper between you and the seller does not protect you. What you buy is the seller’s contract rights, not a title.
Checklist before any money moves
- Ask the developer in writing whether the contract to sell is active, fully current, and transferable, and who it recognizes as the buyer.
- Get a developer-approved deed of assignment and assumption (and the bank’s approval if the unit is financed).
- Check the developer’s license to sell with the Department of Human Settlements and Urban Development (DHSUD).
- Request the statement of account and compare it with the seller’s receipts.
- Pay by documented transfer or escrow, not cash to the seller.
- Confirm transfer fees and taxes and who pays them before agreeing the price.
Where the Maceda Law fits
The Maceda Law (RA 6552) protects installment buyers of residential condominium units. Its protections attach to the existing contract and its payment history, so they depend on the seller’s record. See how the refund works.
More on the failure modes: 7 ways an assume-balance deal goes wrong, and listings: pasalo condos. General information, not legal, tax or investment advice. Current as of October 2026.
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Sources: Civil Code of the Philippines, Article 1293 (novation by substitution of debtor); Republic Act 6552 (Maceda Law), lawphil.net; DHSUD license-to-sell guidance; Respicio & Co. and Listd commentaries on pasalo. This is general information, not legal advice. Current as of October 2026.
Frequently asked questions
What does pasalo mean?
Pasalo, or assume balance, means taking over a buyer’s remaining payments on a condo: you reimburse what they have paid and continue the installments.
Do I get the title in a pasalo?
Not at first. You usually receive the seller’s rights under a contract to sell; title follows once the price is fully paid.
Is a notarized deed between me and the seller enough?
No. Without the developer’s or lender’s written consent, the original buyer may remain the recognized buyer and your payments may not secure the unit.
Can I get a refund if a pasalo fails?
Only under the underlying contract and the Maceda Law, and only for what the contract recognizes. This is why you verify the contract first.
