I bought house and lot in 2010 with an agreement of deed of conditional sale. The land title is still under the name of the lending investor. In the agreement I will pay an advance payment of one hundred thousand (P100,000.00) and will pay 32 monthly installment of forty thousand (P40,000.00) a month for a total of P1,380,000.00. A penalty of 3% will be charged for any default of monthly installment. Should I fail to fully pay the whole amount, agreement will be rescinded, down payment forfeited and only 50% of my paid installment will be refunded.
Due to the financial crisis, I was still unable to pay 3 remaining monthly installment or P120,000.00. But despite of this, I am paying the monthly penalty. However, the owner threatened me that they will rescind our agreement as it should have settled my obligation since October, 2013.
Is there any legal way of stopping the owners to rescind our agreement? I have already paid them 1,260,000.00 plus penalties. I told them that at present my capacity to pay is only ten thousand 10,000.00 a month and hopefully in two years time my obligation will be settled. But they told me this is unacceptable as they have only given me a grace period of until April this year or they will declare our agreement null and void.
I really need very badly your legal advice. Thank you very much.