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Exessive Penalty Charges on Balance Upon TurnOver of Condominium

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g batoon

Arresto Menor
We have purchased a property Amounting to 2.5M last June 2008 with 30% down payment payable in 48 months. The balance will be paid upon turn over. The Schedule of turn over shall be after 4 years with a grace period of 1 year

We have successfully paid the down payment and as expected the Unit was not ready after 4 years. On December 2013, the developer demanded us to visit and accept the unit. However when we have visited place, the whole project was not ready, Amenities are lacking, unsafe to staff due to the ongoing construction of other towers.

Actually they did not miss to remind us to secure a loan in 2013 but due to complications with bank, the bank guarantee has just been released in May 26, 2014. The statement of account and miscellaneous fees were released to us last December 2013 only. From then on, we applied our loan to several banks.

On June 9,2014 a statement of account was issued by the developer showing our outstanding balance. And I was very surprised to see a penalty close to Php500,000 for a loan of 1.8M. This was computed on a 4% per month penalty. They are demanding us to pay the penalty so they can turn-over the unit fully and issue the deed of sale.

is this reasonable? What action should I do in order for them to reverse/waive the amount.
I have emailed them and sent a formal letter of request of reversal but did not receive any feedback from them yet

please advice

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