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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.

The Three Widows

      The BLL Realty Development Corporation is the owner and developer of a Model C residential subdivision. A total of 120 residential lots were developed and up for sale. Two employees from the Animal Nutrition Unit of Sta. Maria Corporation applied for a residential lot each, through their respective loan from the Countrywide Housing Mortgage and Finance Corporation, a government corporation. Prior to their application to CHMFC, they requested the management of BLL to transfer to their name the respective title of the lot they wanted to purchase and that would be paid through the said loan. The management agreed with this arrangement. Both of the employees’ applications for house and lot loans were approved by the CHMFC.
         The proceeds of the house and lot loans were released through a conduit provincial bank branch, in which case, the Lucky Savings and Loans Association, Inc., also known as Lucky Bank. The LSLAI or Lucky Bank had official and legal agreement to take care of releasing the amount of loans and to accept the monthly amortization or payment. Both employees entered into a legal agreement with Ms. Delilah W., a widow, who assisted them in the processing of all the required papers for the loans, for a certain fee.
        The proceeds of the loans were released to both employees. Mr. Radge H., one of the employees, hired his relatives to construct his house. On the other hand, Mr. Gus S., the second employee, entered into a legal agreement with Ms. Delilah W. to be the contractor of his house. Ms, Delilah W. requested Ms. Camela U., a widow and the eldest of three siblings who own the BLL Dev. Corp., to permit her to be the contractor of Mr. Gus S.’ house. Due to the irking persistence of Ms. Delilah W., finally Ms. Camela U. relented. 
     After two months, Mr. Radge H.’s House was completed and inspected by the representatives of CHMFC and LSLAI and the lot balance was released and paid to BLL. Unluckily, in the middle of the construction of his house, Mr. Gus S. died and left Ms. Gus S., the widow, to oversee the construction of their house. After a month, Ms. Delilah W. informed Ms. Gus S. that the construction would stop due to shortage of fund. The representatives of CHMFC and LSLAI inspected the house and found that the toilet and other bathroom fixtures, the grills for the windows and the interior and exterior painting stated in the specifications of the house plan were missing. CHMFC and LSLAI declared that the house was incomplete and stopped the payment of the lot balance.
After six months, Ms. Gus S. received the full benefits due to her husband’s death, but she did not bother to complete the house with the reason that she would save them for their children. The LSLAI foreclosed the property and BLL did not receive any payment at all.  


Alternative Courses of Actions:
            This is not an attempt to solve the problem but just a venture to look at some alternatives and courses of actions that should have been taken into consideration to avoid or prevent some untoward incidents.

o       Mr. Gus S. should have employed a master carpenter and a small team of local artisans to construct his house just like what Mr. Radge H. did.

o       Ms. Camela U. should not have allowed Ms. Delilah W. to be the contractor of the house.

The total proceeds of the house and lot loan that the borrower received was about ₱350,000.00.The lot cost was ₱99,450.00 and the contractor’s fee was 35% of what was left for house construction. The contractor’s fee amounted to ₱250,550.00 x .35 = ₱87,692.50. The remaining ₱162,857.50 was the amount left used to build the house.

o Ms. Camela U. should have imposed a contract or agreement with Ms. Delilah W. that specifically stated that as a contractor she would build the house as specified and in conformity with the requirement of both the CHMFC and LSLAI, to assure payment of the lot balance to BLL.

o   Ms. Camela U should have imposed on Ms. Delilah W. to post some sort of bond equivalent to the contractor’s fee or the lot balance.
    
Remember that BLL initiated trust through its agreement to transfer the lot in the name of the employees, thus it could also require other parties to make tangible form of assurance of payment.

           Dear readers and followers of this blog, it is now your chance to select the best alternative courses of action or suggest your own version. Keep on thinking, it is good exercise for our memories. 
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