I need a legal advice on this matter, please help this pinoy.

Would this legal terms not yet notarized enough to justify this agreement? What should I do to enhance this more? I didn't indicate the names and addresses here for privacy purposes. The problem is the borrower is my mother, I helped her construct her new house through this money. She already trend his title to a lending company payable for 5 years. Now all I have is the title xerox copy and she agreed to give this PVAO ATM by January.

The details of the agreement are as follows

LOAN AGREEMENT

THIS AGREEMENT is made on the 26th of JANUARY 2010 between:

NAME OF BORROWER, Party 1 (BORROWER) residing at (address hereinafter referred to as “the Borrower”; and

NAME OF LENDER, Party 2 (LENDER) residing at (address) hereinafter referred to as “the Lender”, and together with Borrower the “Parties.”

IN CONSIDERATION of the advancement of funds under the terms of and conditions of this Agreement and other good and valuable consideration, the Parties agree as follows:

On the execution of this agreement the Lender agrees to lend the Borrower the sum of FOUR HUNDRED THOUSAND PESOS (“the Loan”) on the terms and conditions set out in this agreement.

Interest on the Loan shall be calculated at a monthly rate of 0.5% of the total amount Loan and shall be charged on the balance of the Loan outstanding on a monthly basis. Said interest shall be payable by the Borrower to the Lender monthly in arrears.

The Borrower agrees to repay the Loan demand.

The monthly installments of 4,500.00 pesos have been calculated to allow the Loan [and interest thereon] to be repaid in full within 160 months.

The Borrower may repay the Loan (and interest accrued thereon) at any time after the date of this agreement without penalty.

The Borrower agreed to pay the LOAN [and interest thereon] through PVAO Monthly Pension ATM card and agreed to give this ATM card to the Lender until full payment of the LOAN [and interest thereon].

The Borrower agreed to give the original Certificate of Land Title to the Lender as COLLATERAL (House and Lot) until full payment of the LOAN [and interest thereon].

The Borrower and Lender agreed in case that the LOAN [and interest thereon] was not paid in full due to sudden decease or death of the Borrower that the rights and ownership of the Certificate of Land Title of the Borrower will be legally transferred to the Lender as a full payment for the LOAN [and interest thereon].

IN WITNESS HEREOF these presents are executed on the date before written:


SIGNED by [BORROWER]


________________________________________


in the presence of

Signature of witness:


________________________________________

Name of witness: _________________________

SIGNED by [LENDER]


________________________________________


in the presence of

Signature of witness:


________________________________________

Name of witness: _________________________

tell us about this other loan first:

She already trend his title to a lending company payable for 5 years.

i think this is the more worrisome part. if your mother already collateralized the property, then your provisions about it being security for your loan will be useless.

About the lending company, my mom has trend/given the original title of this property to this lending company with a debt of 300,000 pesos with interest payable for 5 years. She is already paying it since last January 2010 every month for about 15,000 pesos through her VA pension. Because we need to finish the new bungalow house worth 3 million that is why she trend this property to pay for the laborers and materials. Eventually, because construction materials are expensive now, she got short of budget. Because she is my mother I let her borrow 400,000 pesos just to finish this house and move in here. Actually, we are just renting a house. Actually, I was the one who bought this 250 square meter property. I let her exchange it with her property at a barrio just to construct this house which is already legally settled.

She already signed this agreement which I have written and she agreed with the terms, but I am worried because I'll be waiting for 5 years just to get the original title and secure this loan.

What legal actions should I do if she has already signed our agreement which is not notarized by law?

Would this agreement be sufficient enough to secure the money I have lend to her?

If eventually she has already settled her 5-year debt to the lending company and given the original title to me--if ever within this years of our agreement (160 months payable through PVAO pension), she happened to be deceased what legal actions should I do?

Would my 1 brother and 1 sister, have the right to claim this property if our mom died?

Would our agreement be sufficient enough in order for me to solely claim this property and eventually transfer the rights and ownership to me?

Can you give me a sample contract or agreement forms?


I am sad and felt like I'm just been used.

Please help.

If our written agreement is already useless, what legal actions should I take in order to secure this loan?

Do you have sample agreement or contracts which would be appropriate for this matter?

as to the loan, the agreement is fine, but as to the mortgage of the property it is not.

since a first mortgage exists, until that is extinguished, all you have is a second mortgage which just gives you the right of redemption if she defaults on the debt to the lending company.

a clause that states that the property immediately becomes the property of the creditor in case of default or death of the debtor is also void.

what i recommend is that you instead include a clause that she agrees that the property, in case of her default, may be foreclosed extra-judicially and specifically authorizes you to do conduct it. it has to be notarized.

if you are able to control your siblings, then there should be no problem, but if your mother dies, they will also inherit by law.