Feb
28
Will you accept a 70% refund of your equity for the condominium unit you purchased?
By
My husband and I purchased a condominium unit for 2.8m pesos last May 2007 during its pre-selling period. It’s now selling at 3.2 m pesos. We paid 20% equity and transfer tax, registration and misc. fees and the bank financed it for the 80% balance. However, despite the release of loan last December 9, 2008, the developer failed to turn over the unit to us. Since we cannot afford to pay rent and pay for the amortization on the loan for the condo the developer did not allow us to use, we demanded return of our payments and the loan proceeds they received from the bank last January 8, 2009. The developer wants to settle for only 550,000. We paid a total of 777,907.44. Will you accept it if you were in my shoe?
Quick House Sale
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1 Comments
May 3rd, 2009 at 12:30 pm
Check with a lawyer to determine your rights.
I’m not a lawyer, so this isn’t legal advice. However, I suspect a lawyer will suggest that you take what you can. It sounds as if the developer is having substantial financial difficulties and settling for something is better than receiving nothing.
However, from my (United States) perspective, your situation is puzzling. Here, after a purchase, you would have legal title to the property. It would have been transferred to the buyer at settlement. In fact, no lender would approve a loan (keep in mind that the loan is secured by by the property) to a buyer unless the buyer held the title to the property. As you’re describing it, the lender lent you the money, but somehow ownership wasn’t transferred to you. That wouldn’t/couldn’t happen in the United States, or in many other countries.
So, check with a lawyer and determine what your rights are.
Hope that helps.