CONTRACT TO SELL WITH NO PROVISION ON PENALTY

CAN A DEVELOPER COLLECT PENALTY IF MY cts with them stated no provision for it?

If yes what would be the reasonable penalty rate?

Thank you.

please be more descriptive about the situation? what is the penalty for? why was it applied?

I was in default for two months amortizations. thanks for the attention on my query.

how much did they charge?

the law states that delay entitles the creditor to interest and damages. you can argue that you are allowed by the maceda law to pay without penalty for delay of one month per year of payments but you are allowed this grace period only once. unfortunately, if you have to litigate to enforce, you will have to file a case at hlurb.

THANK YOU.

to ask another along the same line, our contract to sell and master deed states that the developer and condo corp can collect 3% interest penalty per month for late payments like installments, association dues, assessments etc.

but now they are charging in addition to the 3% per month, another 10% per month they call a 'surcharge'.

i've read the cts and master deed 20 times and i can't see anywhere they hidden or reserved the right to charge us anything other than the 3% stated.

question, can they do this?

thanks in advance

if its not in the contract then they do not have a basis in collecting it.it is however strange that they forgot to put it there.perhaps they placed it in the penalty and surcharge clause which might be even higher than the supposed interest.

barister98 wrote:if its not in the contract then they do not have a basis in collecting it.it is however strange that they forgot to put it there.perhaps they placed it in the penalty and surcharge clause which might be even higher than the supposed interest.

the word surcharge does not exist anywhere in my readings of cts or master deed.

do you know of any jursiprudence or what can i specifically tell condo as to why they can not collect it. obviously they feel they have the right to collect it.

Hello Atty.

I have a housing loan in BPI, the term is five years to pay with 11.+% of interest per annum total price of 2m pesos fixed. Based on the agreement between me and BPI that I signed, failure to pay my monthly mortage in five (5)consecutive months it will be subject for foreclosure. I suppose to fully paid it by Sep 2011.
Just I want to know what will happen if I fail to pay my monthly mortage in five (5) consecutive months.?
These are my situation right now.. I'm an OFW and previously worked in Qatar EP&C, under Japanese company. I finished my contract last end of Oct. 2010 and now I'm here in Philippines without a job almost four months already. And I have no any idea when will our next project will start. So since I have small savings in my bank account I'd pay in advance for three months. So my last payment was February 2011.
I also just want to know what is the best remedy for this matter just to avoid foreclosure.
I hope you understand what I'm trying to say.
I'm looking forward to receive your reply.

Thank you and more power to you.

Best regards,
Kiko

keep talking to the bank, ask for leniency and pay what you can. 5 months to get back on track is a long time. any foreclosure after that will not be considered unreasonable.