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1 LEGAL ACTION NEEDED on Fri Jul 03, 2015 9:50 pm


Arresto Menor
I am trying to research for a Case number of anything similar that can be used as a basis for our legal dilemma.

A month ago a couple came to us selling their property. Since the property was really a "good buy" we agreed to some terms. We went to the couple's lawyer who prepared the "contract", which stated the following.

1. The title is clean (not pawned, single owner) under the couple's name.
2. Upon payment of 300,000 or half of the total amount the house is ready for occupancy.

And several other terms.

We agreed to the contract and both parties signed in front of this lawyer.

Now it came to a point that we are about to occupy the house. The couple will not move out and says that they are no longer interested selling the property. We later found out that the house and lot is pawned in a Financing company.

We filed a case in the local baranggay and the couple agreed to pay back the 300,000 in a week. A week after they again mentioned they are no longer interested paying and we can file against them on court.

Question: Is there anything we can do to avoid such fuss and just continue with the original contract. Since we can just pay the Financing company 340,000 which is the amount of the couple's debt including the interest.

Reason why I am asking is becuase it will be troublesome for us to file the case in court not to mention the money involved getting a lawyer.

Assuming acceptance fee is about 10k-30k and the daily rate of the lawyer per hearing. Although we can arrive at a decision that if the couple loses they will be paying whatever fees we paid our lawyer.

But I am also considering the fact that this couple has no means of paying us nor the fees of the lawyer in case they lose.

I hope you can shed some light to this.

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2 Re: LEGAL ACTION NEEDED on Sat Jul 04, 2015 8:21 am


Prision Correccional
You would still need to go to court. Let us say you enter into a extra-judicial settlement with the seller, breach of contract happened, you would still need to go to court for the enforcement of the breach of contract. Your case is a perfected contract of sale, and for you to enforce this, you need to go to court. As for the payment for damages done, well... its better that something returned for the initial 300k that you have paid.

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3 Re: LEGAL ACTION NEEDED on Tue Jul 07, 2015 6:46 pm


Reclusion Perpetua
There is already a breach of contract here. Your remedy is to go to court for SPECIFIC PERFORMANCE for them to comply with their obligation to deliver the property or RESCISSION, just cancel the contract and they will give back what you've paid. Since in your case you really want the property, specific performance would be the right remedy. Actually, you do not have to pay for the mortgage in financing company if such mortgage was not annotated in the title. You are not liable therefor as you are a purchaser in good faith and for value unless it is stated in the contract that the seller reserves the right of ownership over the property until full payment. In that case, you already learned about the mortgage before ownership transferred to you.

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