Dacion en Pago

by Prime Radar Team   July 16, 2015

Question: Hello PRIME! I’ve loaned in this particular bank amounting Php 7 million to start up my own laundry business and to secure my payment, I mortgaged my property, an open lot, located in Malate, Manila with 500 square meters. I was given 18 months of installment to pay my debt and as of now, I know that I will fail to meet my obligation. Here is my question before jumping to a conclusion. Can I offer half of my property as a payment to the bank?  Answer: Greetings! Yes, you can use your property as payment for your remaining debt in the bank as long as you and your creditor will settle into an agreement. In the Philippine law, there is what we call ‘Dacion en Pago’ which is defined as “a special mode of payment” where you, as the debtor, can offer other means of payment to the creditor, in your case half of your property. In simpler term, Dacion en pago is a payment in a form or property which is left or given to the lender to satisfy an obligation.

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Affidavit of Title
by Prime Radar Team  August 28, 2015
Affidavit of Title

Question: Hello, PRIME Philippines! I’ve been actively searching for a home in a subdivision near Eastwood City. I found a house that I’m interested in leasing. One problem is that the landowner was required to fully disclose their legal issues. Although I remain interested in leasing the property, I was wondering if there were any legal documents I could request from the landowner in order to distance myself from their impending legal issues? Answer: Good day! In order to evade the impending legal issues, you should request an Affidavit of Title from the current landowner. This document should clearly state the...

Contingency Clause
by Prime Radar Team  August 18, 2015
Contingency Clause

Question: Hello PRIME! I have been searching for a subdivision relatively close to Ortigas Center as I’ve recently landed a new job. I found some property in an ideal location. The house will need some renovation and the landowner has told me on repeated occasions that he intends on completing this before the end of next month. However, they’re requesting that I purchase the house within the coming week as he’s set to leave the country for two weeks, making face-to-face negotiations impossible. Although I’m interested in the location, and the mortgage rate is ideal, I’m wondering as to whether...

Adjustment Frequency
by Prime Radar Team  August 6, 2015
Adjustment Frequency

Question: Hey PRIME PH! I currently live in an apartment in Makati but I desire to move to a house near Ortigas. I was exploring the types of mortgages available to me; one of them included an adjustable-rate mortgage. Someone tried to explain the concept of adjustment frequency to me but I’m confused about all the technicalities and how it would impact how much I pay per year. May you please help me in making this clear to me before I make any decision? Answer: Greetings! When someone mentions adjustment frequency, they are highlighting the regularity by which the interest rate...

Appraiser
by Prime Radar Team  July 23, 2015
Appraiser

Question: Good day, PRIME Philippines! I have recently returned to Manila following my year away from home. I’m actively looking to purchase a new home in Quezon City, somewhere relatively close to Eastwood City, as I’ll be working there. I have a set budget range that my company is willing to assist me in making the purchase. However, I am currently unaware as to the estimated costs of the properties I have considered. Is there anyone I could contact in order to get this information? Answer: Greetings! The great news is that you could appoint an appraiser to assist you in figuring...