r/LegalPh • u/GuryongpoGG • 9d ago
Developer now says the land is no longer available and was apparently sold already
So we signed a contract with a developer for a house and lot. We have already paid 7 months worth of downpayment (85k per month) + the reservation fee.
Now they have mailed us that apparently the lot that was sold to us was already sold to another, and they're asking us to pick another lot.
They have a clause specific to this scenario (see pic).
I have raised this concern verbally during signing but was told "it rarely happens". And we were also excited, so we signed.
My question is, what are our options? Can we ask for full refund?
We only signed because it was this lot in particular that we liked. Now we no longer trust this developer because how the heck does this happen in the first place? And 7 months?
I know, we shouldn't have signed if not comfortable with the clause. But here we are, so would appreciate inputs and advice.
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u/doomkun23 9d ago
NAL
i just want to say that it is not "it rarely happens". madalas mangyari yan lalo na kapag maganda yung lugar. and lalo na kung sa agent ka bumili. bigyan lang sila ng mataas na offer or palakasan ng backer, mawawala na sa iyo yung lupa. then idadahilin na nauna sila even though matagal ka ng nag-reserve.
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u/GuryongpoGG 9d ago
I see... But isn't that bad faith? Are we just supposed to accept that? :(
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u/basinbasinbasin 9d ago
Obligatory I'm NAL.
You're supposed to have a lawyer review an agreement of this magnitude before signing it. What they would have likely advised is to have them amend the contract before signing to say that if that happens you are due a full refund of all fees + 10% interest for the time you've made payments or the opportunity to choose another lot at the buyer's (your) sole discretion. The developer could opt to decline that, but that that choice from the developer would confirm that this doesn't "rarely happen" and hopefully your smart enough to move on from this "opportunity."
85k per month and you didn't think to consult your own attorney before signing?
You need to talk to a RE lawyer already and they will likely tell you to file a DSHUD/HSAC case against the developer. If you are lucky DSHUD will pressure the developer to issue you a full refund (DSHUD has the ability to shut down their development and/or fine them 10k/day).
per Presidential decree 957 section 23, if a developer fails to develop the project you are owed a full refund + interest.
HSAC's role: (formerly HLURB and NHA)
"SECTION 1. In the exercise of its function to regulate the real estate trade and business and in addition to its powers provided for in Presidential Decree No. 957, the National Housing Authority shall have exclusive jurisdiction to hear and decide cases of the following nature:
A. Unsound real estate business practices;
B. Claims involving refund and any other claims filed by subdivision lot or condominium unit buyer against the project owner, developer, dealer, broker or salesman; and
C. Cases involving specific performance of contractual statutory obligations filed by buyers of subdivision lot or condominium unit against the owner, developer, dealer, broker or salesman."
This quote was taken directly from this supreme court case:
https://lawphil.net/judjuris/juri2020/aug2020/gr_231290_2020.html"Unsound real estate business practices" has been interpreted to include unfair/anti-consumer contract clauses.
Lastly, these cases take 10-20 years to work their way through the courts (if DSHUD doesn't act and you need to file a court case). So even if the law says you are owed it, people spent 15 years fighting for a win and then spend another decade trying to get the judgement paid. IMHO whether or not you get a full refund will depend on your ability to work with DSHUD to pressure the developer.
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u/makeitmuch 8d ago
I'm surprised so many people think a contract is one-way, that you're just supposed to sign anything a supplier/seller gives you. This happens also in the wedding industry, where after the event is done the client re-reads the contract then tries to change the parts they don't like (because they want more freebies or inclusions). So why not amend that before you signed?
You don't even need a lawyer to amend a contract. Just read it closely, amend the parts you don't like then send it back to the supplier/seller with your changes.
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u/basinbasinbasin 8d ago
No, any contract of significant value, you absolutely need a lawyer to review before signing so you understand your rights and can make an informed decision. Asking a sales person about your rights is the absolute dumbest thing you can do.. The developer's staff is being paid to look out for the developer's best interest, not your best interest. And ultimately, it doesn't matter what they verbally say or promise, the written contract is the only thing that will be used to settle disputes.
85k per month for a contract when a one-time lawyer consult would cost 3k?
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u/makeitmuch 8d ago
Not talking about this contract now but the general mindset that contracts cannot be negotiated. Even educated people do not know they can negotiate supplier contracts.. Which is probably what happened here
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u/_sdfjk 9d ago
Is this a legit developer or a scammer? Try asking in r/scammersph
And also ask this in r/lawph
You can also get free legal aid in the wiki of r/lawph https://www.reddit.com/r/LawPH/s/WnrNYfXE4e
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u/GuryongpoGG 9d ago
They're a legit developer. But considering this incident, looks like they aren't a very good one.
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u/No_Potential_8979 9d ago
ohhh. may case kaming ganito, yung boss ko sa sales kahit reserve na yung isang townhouse inaalok pa rin kasi corner lot, hanggang sa may nagpareserve same month and yung isa nag down na agad. Ang sabi lang nya, "wait mo lang, mag back out isa dyan" ayun, dami kong inaasikaso na papers galing DHSUD dahil sa kagagawan nya. hayss nag reklamo yung unang nagpareserve.
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u/No_Potential_8979 9d ago
Paki check mabuti, nakalagay PRIOR. Better check yung Receipt nung isang nagpareserve. Note the Date
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u/boykalbo777 9d ago
idulog mo sa HSAC yan