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Can we get a full refund of payments made?

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1 Can we get a full refund of payments made? on Tue Mar 29, 2011 3:03 am

monique11


Arresto Menor
Hi,

My husband and I bought a townhouse unit last December 2008. They had this 0% interest scheme if we pay within 18months so we availed that. We were told that they would start building the unit once we have paid the 30% equity, which we did on May 2009. But the developer did not build the unit as promised. We were told that there would be a delay and they would start building by July 2009. July 2009 came and went, still no house. From then on, they kept on doing that to us -- informing us that it will be started in a month or so, then there would be another delay -- over and over. Last December 2009, we stopped paying for two reasons: 1. Our contract overseas expired (We were OFWs then) so we cannot pay as big as we had before, and; 2. We have already given 2/3 of the full amount and yet there is still no house being built! Now, it's almost 2years (the time when the house should have been started being built) and we want to withdraw all the money that we have paid.

We've been reading the contract and there are two sections that quite bothers me:

"3. DEFAULT
3.1 Default shall take place upon the occurrance of any of the following events:
(a) the failure or delay of the BUYER to pay any amount due hereunder on the date or within the period specified in this Contract or in other applicable documents, for any reason whatsoever, and is deemed to include but not limited to cases of force majeure;
(b) the failure or delay of the BUYER to comply with any covenant or obligation required to be performed or undertaken hereunder (other than the obligation to effect the payments of amounts due hereunder) or to comply with the covenants and restrictions nder the Deed of Restrictions;"

and

"9. The SELLER in its capacity as sole seller of the house, shall exert its best efforts to deliver the Unit to the BUYER within _____ (____) months after full payment of the thirty percent (30%) of the Total Contract Price, provided, that, that all the requirements of the SELLER for the delivery thereof have been fulfilled by the BUYER. ...". The problem that we're having is that my mom-in-law signed the contract WITHOUT checking that that part was left blank
(we had to give her Special Power of Attorney since we were out of the country that time).

My question is: Can we get a full refund of our payment, according to the provision on Section 23 of PD 957 Subdivision and Condominium Buyers Protective Decree, since the unit has not been developed (we already paid 2/3 of the total amount and they were informed that we would suspend payment)? If so, what should we do next? And would we have any problems regarding the sections in the contract that I mentioned above?

I would really appreciate your help with this matter.

Thank you!

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attyLLL


moderator
you have to send a demand letter that they should refund all the payments because of their breach of the contract, then file a complaint at the HLURB


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monique11


Arresto Menor
Thank you, Atty!

We actually wanted to do this a year ago but we have been told that we would only be getting 50% of what we have paid -- AT THE MOST. They were lecturing us about the Maceda Law but I told them that I don't think that that law covers our situation. Am I right about this? I really just hope that we could get a full refund.

Thanks again and God bless!

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attyLLL


moderator
this is not a situation for the maceda law. this is rescission of contract based on substantial breach.


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5 Re: Can we get a full refund of payments made? on Wed Jun 22, 2011 10:37 pm

LST


Arresto Menor
In this case, since the buyers waited so long and most likely had to go through a lot of frustration, can they sue the developer for say, mental anguish? Can they sue for damages?

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