Due to difficult times, many condominium owners suffered a financial crisis and subsequently defaulted in paying monthly obligations which resulted in the forfeiture of their property.
If this is your case, then read on.
NO downpayment, low monthly payments, zero interest in 3years, or Lease to Own, are just some of the teasers that bewitch buyers into property investment. And some are just too excited to rush, thinking they hit a jackpot and without much research and preparation, plungged into the trap.
Must admit that I myself was entrapped at one time or another, so that makes me a sort of authority to talk about this critical issue--I walk the talk-- ika nga! 😀
Say, you invested a posh condo in Bonifacio Global City in Taguig.."ahh my OFW dreamhouse finally!" you beam with pride. And without further ado signed a Contract to Sell for a PHP 4m condo because the 20% down payment is payable zero interest in 3 years. Basically, you will be paying only P11k+ per month for your lifelong dream home, so san ka pa?! kaya go na! or so you happily thought.
Now comes the sad reality of life. Your office is downsizing or business is down due to global financial and health crisis and you are as badly affected. Then you started missing monthly payments, or about to complete paying your 3yr zero interest instalment plan, as turnover of the property looms in the coming month. But banks or other lending institutions will no longer approve your loan application as you are now in the league of the chosen jobless, or has bankrupted (don't worry marami po tayo in the same league) 😁
Ergo your beloved condo that you have painstakingly paid every single month for the last two or three years, is taken away from you, period.
So where to go now? What options do you have?
First, don't cry out loud. Just relax sit down and read your terms and conditions in the contract and try to look for some grey areas where your developer may have faulted too. Oftentimes, they miss delivering the unit on the stated date, so dyan may alas ka na. Here you may seek a full refund and if they refuse then go run to HLURB now DHSUD, our knight in shimmering armor.
At any rate, you are protected by RA 6552 known as the Realty Installment Buyer Act or simply known as MACEDA LAW. This law entitles you to a 50% refund of your payments if you have already paid installments for at least two (2) years. Other important items to note in Maceda law:
-- if paid installment for 5years then additional 5% refund for every year thereafter;
-- if paid installment for less than 2years, you have no cash surrender value but have rights to: a) a grace period of not less than 60days; b) to be notified of cancellation; c) to sell or assign d) to reinstate your contract before actual cancellation;
Please note that notification of cancellation means you as the buyer/owner must receive and acknowledge a duly notarized notice of cancellation or demand for rescission of contract. Hindi po pwede na basta na lang sabihin ni project owner na "hoy Juan/Juana, pack up ka na kay kanselado na kontrata mo!" Nah no!
In another case where buyer already fulfills (almost) complete payment of say three (3) year DP (down payment) where the unit is supposed to be delivered on the final payment of your DP, but the said property is nowhere in sight--meaning not even a single post was erected-- then what now?
Ahh, gotcha!
You can ask for full refund in this case. Most probably, project owner will offer you other promises which you may consider, but if all things fail, do not renounce your rights to full refund. How to do this? Give the project owner the courtesy of writing them your intent, but, with a time frame. It must within a reasonable timeframe. Else, you'd be waiting for many Christmases to come and go, whilst they are buying their sweet time caused by your indolence, so to speak.
If that action or non-action proves futile, then seek legal help from the authority or from any other experts or your broker for that matter.
So there, hope this helps those who are currently griping their investment state while grappling with pandemic realities. Don't feel down, just have faith at kaya natin to!
And if all your efforts fail, just dial a friend, Im just a call away 😍
Keep safe folks. God bless us 🙏
Wilma B Villanueva, MBA-Bldg & Property Mngt
License Real Estate Broker
License Real Estate Appraiser
Property Manager-Dubai Certified
