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Our dear realty practitioners and aspiring ones:

This blog will deal primarily with the experiences of ordinary realty practitioners. All of the names, places, government and private offices, amount and other details involved in the real estate transactions are intentionally changed to ensure that the stories will not be used for or against particular persons and entities. This will serve as a downloading space for bad and good experiences to enable all practitioners to ventilate and share their memorable encounters, thus ease themselves of pressure and tensions and finally expel the negativity that the experiences brought about. To those who had similar experiences, this is the opportune time to relate and feel triumphant and relieve. For those who have more unique stories other than those related here, it is time for you to share and in turn be more than willing to enable and equip others to avoid the same situations and conditions, they themselves fearlessly faced. In the process, we will all become the genuine comforting peers for all in our rank.

This spot will also include portions that will enable us to analyze the situations and bring about possible decisions and courses of actions on how to avoid the pitfalls. This will also give general lessons learned from the different incidences. Other practitioners are very much welcomed to offer some advice and possible courses of actions resorted to during the particular conditions at hand. We shall not argue about on which courses of actions should have been done. But we would rather approach the problems more maturely by allowing each one to choose freely his or her alternative solutions.

With light and warm heart, we would like to welcome you all, to regularly meet us here and candidly participate as real buddies in arm forever.

You may have chance to look at some linkable blogs like: TVY Realty, Seaforest Thinks and Learning about Realty. They are worth your time and effort.

Thank you to all faithful followers of these blogs.

Breach of Trust

      Faith and husband Effie dreamed of having their own house and lot in the future. To fulfil their dream and to ensure their children’s future, they figured out that Effie would apply as an oversea’s worker in the Middle East. After filling several applications he was finally hired. Thus, he left his wife and a year-old daughter in the house of his aunt.
            
      After a year, the couple had saved an ample amount of money to make an initial payment for a residential lot. Faith confided what she would like to do to Lorna, a new acquaintance, who happened to be a real estate salesperson or agent in the next town’s newly opened residential subdivision. Lorna invited Faith to go with her in the subdivision site and showed her the available residential lots for sale. Faith consulted her husband through a long distance call. They decided to acquire a lot through one of the monthly instalment schedules that the Residential Subdivision’s owner and developer were offering then. Within the period of three years, they were able to complete the payment of the residential lot. Faith asked Lorna when the title of the lot could be transferred to their names. Lorna told Faith to hold on to a title of lot, which was in the name of another person, as an assurance that soon the new title would be transferred to their names. A year had passed and the title had not been transferred to the name of the couple.
      Faith who had paid all the instalments throughout the past felt a little guilt despite the silence of her husband. She decided to seek the advice of her uncle who happened to be a real estate broker in his cousins’ real estate company. Her uncle noted all her narrations regarding the problem and prepared a letter stating the basic facts of the problem to the housing authority of the region. The housing authority’s legal unit answered the letter but would just like to be assured that the complainant was not forum shopping. Her uncle prepared all the required documents to substantiate her complaints to the housing authority and to assure the legal unit also that she was not forum shopping. Faith requested her uncle to put on hold the letters and the evidences regarding the problem. She told her uncle that the salesperson and the subdivision manager talked to her and promised that the title of the new residential lot would be transferred to their names.
      In a month’s time, the new title of residential lot was transferred to the name of the couple. The compliance of the subdivision owner and developer could have been a perfect one, had it not been for the hitch that the new residential lot was not the one that Faith originally agreed to buy. Faith and Effie finally agreed to the settlement since the new residential lot was in a choice or primary location within the subdivision. They also thought that if they would pursue the case, the litigation process would be long, expensive and the outcome or the verdict was unsure.

Alternative Courses of Actions:

  • Faith should have requested for a photocopy each of the residential lot’s title, tax declaration and approved location plan of the subdivision. She should have requested from the Provincial Assessor’s Office for a certified photocopy of the title of the subject residential lot. The certified photocopy of the title would show if the lot was used as collateral for the loans of the subdivision owner from a banking institution, in order to have additional cash for the development of the subdivision. The tax declaration would indicate the amount of the tax that the owner paid for the real estate tax of the lot. The approved location plan would give the actual location of the residential lot within the subdivision. 
  • Faith should have required the subdivision management to prepare a Contract to Sell between them and the subdivision owner. In the said legal instrument the technical description of the residential lot she originally chose to buy should be specified. This could have prevented possible switching of properties. 
  • Upon completion of all the monthly instalments, Faith should have requested for a certified photocopy of the title of the residential lot she originally chose to purchase. In this way, she could have verified if the lot was used as collateral at a much later date or if the title had been transferred to the name of any other buyer of residential lot. 
Please note: All law abiding owners and developers know very well that any proven complaint against them regarding fault in transferring paid residential lots will result to administrative sanction on the part of the persons involve in the actual sale of the subject property and cancellation of license to sell of the subdivision,   (refer to Sec. 8 and 9 of P. D. 957). This could be the reason why the salesperson and the manager assured Faith of immediate transfer of ownership to the couple.

      The compromise in switching properties had been tolerated since the owner-developer offered a residential lot from the prime location within the subdivision.

      Let us be prudent in following our amortization or instalment schedule, in turn let us require the owners and developers to act with propriety with regards to transferring to our names what rightfully belongs to us and what we had paid with hard earned money. Be vigilant and wise while we follow our dreams. See you till the next review of our real life experience.
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