Contract to Sell is signed by both parties but not notarized

Hi,

We entered into a negotiated bid with the bank for a foreclosed property - condo unit. We agreed to the following terms: 10% downpayment for equity, and 90% to be paid in 15 years with 8% annual interest rate. We have already paid the downpayment, submitted all requirements, and signed all documents provided by the bank - Approved Rates, Contract to Sell, Schedule of Payment, etc. These documents are already signed by both parties, us and the bank. The only remaining tasks is to notarize the Contract to Sell and turn over the key of the condo.

All of sudden, the bank decided to postpone the notarization of the contract and wanted to increase the interest rates to 10%. If we will not agree to this, they will just return our downpayment and cancel the deal.

The questions are: Can the bank do this? Is it legal? Is the Contract to Sell binding even if it is not notarized? What steps can we take to make the bank agree to the original terms? We only want the bank to fulfill what was initially agreed and signed on. It is unfair to us for the bank to change the interest rates after we have all agreed and signed all documents already. We have the copies of these signed documents.

Please advise. Thank you.

Sincerely,
Princeton

check your contract, most probably there is a clause that covers this.

xtianjames wrote:check your contract, most probably there is a clause that covers this.

Thanks. Contract says the bank can cancel the contract if we did not pay or meet their requirements. We met all of them. In short, they are not fulfilling the terms of the contract. The question is, is the contract enforcable even if it is not notarized as they refuse to have it notarized.

Thanks
Princeton

There lies the problem. When you have a document notarized both parties should be in front of the notary public. Yes contract would still be enforceable, ang issue lang is baka itanggi ng signatory na sya yung pumirma. Yan ang trabaho ng notary public tp testify na sya talaga ang pumirma. But if hindi nila dineny na sila ang pumirma that contract is binding

you should have a lawyer review your contract; I hope you have a signed copy. In my opinion the contract is already binding if both parties signed it

Notarization is not a requirement for contracts to be valid. What the notary public guarantees is only the genuineness of the signatures and due execution of the contract, but as far as its binding effect is concerned, it does not need to be notarized just for that. In fact, even verbal contracts are binding, so long as there is meeting of the minds between the parties. Try reading this, I hope it gives you a better understanding about contracts. https://www.alburovillanueva.com/contracts