Is unsigned contract void?

We have purchased condo in one famous developer two years ago and had paid the monthly amortization religiously, until now. Now we are 5 months behind and had received notice that our payments will be forfeited in accordance with the contract to sell that we have signed with them.

However, belatedly, we have found that the contract have not been signed by us. It may be an administrative lapse on their part. Now, can we tell them that since their is no contract at all, can we demand that the money we have paid be return back? Or is there an assumption of existence of contract since we had been paying religiously?

Thoughts please?

The first scenario – you have paid less than two years of installments:  In this case, the seller should give the buyer a grace period of at least 60 days to pay the amount due – via written notice.  If the buyer still fails to pay after the expiration of the grace period, the seller can cancel the contract through a notarial demand for cancellation.  Actual cancellation of the contract takes place after 30 days from buyer’s receipt of notice.  The buyer can: (a) assign the contract to a third person via notarial act before it is cancelled; or (b) update the account by paying the due installments during the grace period.  There is no refund.

The second scenario – you have paid at least two years of installments:  In this case, the buyer is entitled to a grace period of one month for every year of installment made.  He has the right to pay, without additional interest, the unpaid installments due within the total grace period.  This right can only be exercised once every five years of the contract.If the buyer still fails to pay the unpaid installments due during the grace period, the seller may cancel the contract in the same way as the first scenario, via notarial demand for cancellation.  Actual cancellation takes place after 30 days from: (a) receipt of notice or demand; and (b) full payment of refund.

REFUND. If the buyer paid two to five years of installments, he is entitled to a refund of the cash surrender value of the payments on the property (including down payments, deposits or options) equivalent to fifty per cent (50%) of the total payments made.For every year of installments made in excess of five years, the buyer is entitled to an additional five per cent  (5%), but not to exceed ninety percent (90%) of the total payments made.So if the buyer paid 6 years of installments, he is entitled to 55% refund of the total payments made.  If he made 7 years of installments, he is entitled to 60% refund, and so on.  However, his refund cannot exceed 90% of the total amount paid.For an accurate computation of your refund, please ask the HLURB’s help.  Don’t forget that you can research all this information from the internet.ou are covered by the Maceda Law. Reposting this from attyk's blog.

Thanks much po! But is the contract assumed perfected even though it has not been signed?

You can question the contract in court if it's unsigned.

to save money, were thinking of going to mediation. will it be wise?

Yes definitely.