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Property Issue

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1 Property Issue on Tue Aug 18, 2015 12:40 pm

Girl_Problemado


Arresto Menor
Hi.

We were trying to buy a property and paid 20% DP already, and signed a Contract To Sell which states a No Refund policy pag voluntary yung cancellation ng pag purchase.

During processing ng papers namin for Home Loan Application sa bank, maraming kapalpakan yung customer service ng developer ng property in terms of handling our papers, causing delay and so much inconvenience on our end. (We sold our old house to get this new property, and were given a couple of months to stay there by the new owner until we are able to move out. The agent/broker assured us of a specific date of when we can move in to the new property as long as we provide complete docs and pay the DP in full which we did. Due to the mishandling of our docs, the target date of move-in passed and we still did not have a property where we can move into or even view at least, tapos pa we were forced to move out of our old house and rent).

Due to our horrible experience, our family has now decided not to continue with the purchase, and would like to get our money back (kahit di na lahat, basta may maibalik lang).

I am now about to send a complaint letter to this developer and see if we can work out something.

Questions ko:

Is there a law that protects buyers sa ganitong situation?

We signed a CTS with No Refund Policy pag voluntary cancellation. Our cancellation may seem "Voluntary" pero the reason is because of the poor service we experienced. In addition, marami kaming nakausap na current residents of the area na maraming reklamo about the properties they got from that developer, they feel they have been cheated.

Is there anything we could do to take our money back?

I really hope someone could help us out, and educate me as well about these things.

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2 Re: Property Issue on Wed Aug 19, 2015 6:24 pm

isellnuts


Arresto Menor
Girl_Problemado wrote:Hi.

We were trying to buy a property and paid 20% DP already, and signed a Contract To Sell which states a No Refund policy pag voluntary yung cancellation ng pag purchase.

During processing ng papers namin for Home Loan Application sa bank, maraming kapalpakan yung customer service ng developer ng property in terms of handling our papers, causing delay and so much inconvenience on our end. (We sold our old house to get this new property, and were given a couple of months to stay there by the new owner until we are able to move out. The agent/broker assured us of a specific date of when we can move in to the new property as long as we provide complete docs and pay the DP in full which we did. Due to the mishandling of our docs, the target date of move-in passed and we still did not have a property where we can move into or even view at least, tapos pa we were forced to move out of our old house and rent).

Due to our horrible experience, our family has now decided not to continue with the purchase, and would like to get our money back (kahit di na lahat, basta may maibalik lang).

I am now about to send a complaint letter to this developer and see if we can work out something.

Questions ko:

Is there a law that protects buyers sa ganitong situation?

We signed a CTS with No Refund Policy pag voluntary cancellation. Our cancellation may seem "Voluntary" pero the reason is because of the poor service we experienced. In addition, marami kaming nakausap na current residents of the area na maraming reklamo about the properties they got from that developer, they feel they have been cheated.

Is there anything we could do to take our money back?

I really hope someone could help us out, and educate me as well about these things.


There is the Presidential Decree 957 (PD 957) there is also the Maceda law which protects lot buyers from subdivision/developers.

PD 957  SECTION 23. Non-Forfeiture of Payments.

No installment payment made by a buyer in a new or existing subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer desists from further payment due to the failure of the owner or developer to develop the project according to the approved plans and within the time limit for complying with the same. Such buyer may at his option be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate.

It is almost always that buyers of the condominium or subdivision properties cannot do anything about the announcement of delays in the delivery of their purchase. However with Section 23 of P.D. 957, the buyer can actually do 2 things:

1. Desist from further payment after due notice to the owner or developer of the project and clearance from the Board (HLURB) as mandated in the 2009 revised implementing rules and regulations for the decree. See the 2009 revised IRR for PD 957 here.

2. Demand to be reimbursed the total amount paid including amortization interests but excluding delinquency interests, with interest thereon at the legal rate.


Under the Maceda law here are the rights granted to buyers.

1. Buyer paid at least 2 years installment

    a. Pay without interest the balance within grace period of 1 month for every year of installment payment. Grace period to be exercised once every 5 years.

    b. When no payment – cancelled; buyer entitled to 50% of what he has paid + 5% for every year but not exceeding 90% of payments made

Note: Cancellation to be effected 30 days from notice & upon payment of cash surrender value.

2. Buyer paid less than 2 years installment

    a. Grace period is not less than 60 days from due date

    b. Cancellation if failure to pay w/in 60 days grace

    c. 30 days notice before final cancellation

Note: buyer can still pay w/in the 30 days period with interest.

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3 Re: Property Issue on Tue Sep 01, 2015 9:22 am

Girl_Problemado


Arresto Menor
Thank you isellnuts for the useful info.

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4 Re: Property Issue Today at 6:13 pm

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