Seeking Advice About a Transaction Made with a Developer

Hi. If you could please advice me on my situation, details are below.

Last Sept. 17, 2010 I entered a transaction with a developer to buy a house and lot through PagIBIG financing. I paid the downpayment required and signed the Reservation Agreement.

From then on up to January 20, 2011 I complied with the needed downpayment and documents.

Around February of 2011 I was able to comply with all the needed documents and downpayment and was advised to wait for about 1-3 months as they process my PagIBIG loan and that they will just contact me once they can already turnover the property to me. I was also advised to continue paying my monthly amortization through post dated cheques, in which I deed.

May 16, 2011; having received no notice from the developer I went to their office to inquire about the house & lot and it was then that I was informed that the financing of the house and lot will no longer be through PagIBIG but through the bank of their choice in which the amortization will be higher than what was in the original agreement.

After informing me, they then handed out papers (reservation agreement, contract to sell, insurance, etc.)which I'm supposed to sign again for the transaction to push through, I opted not to sign the papers then (since I noticed that some of the fields in it were left blank).

Some of my questions are:
1. Do I have the right not to push through with the transaction since one of my reasons for entering such transaction is knowing that the financing will be through PagIBIG?
2. If I opted not to pursue with the transaction will I be able to get back the full amount I paid since in good faith I've complied with all the requirements as stated in the initial agreement and will be willing to continue had they not change the financial institution?

Thanks a lot.

why was pag-ibig no longer an option? what documents do you have that show that it was supposed to be pag-ibig. is it impossible to continue your application with pag-ibig?

if both of you agreed that payment will be through pag-ibig, and it is they who are canceling or at fault that it cannot be pag-ibig, then you should be entitled to full refund.

unfortunately, if they refuse to give back the refund, you'll be forced to file complaint at hlurb.

Hi. Thanks for the reply.

The only reason they gave is that the process in PagIbig is taking awhile, they've also mentioned that PagIbig financing is no longer an option for them.

I've already signed some papers stating that the financing institution for my purchase is through PagIbig, unfortunately though I don't have a copy of those papers because the agent told me then that it needs to be notarized first before they'll be giving me my copy.

What I have is a printout of the requirements I'm supposed to comply along with the reservation agreement which states that my financing institution is PagIbig. Will that be sufficient proof?

have you followed up with pag-ibig whether they are indeed canceling the loan application?