The developer is asking us to sign a set of documents and medyo hesitant kami.

Situation: we are buying a house and lot from a developer. Medyo minamadali namin magawa so we paid half the down-payment (1 year of 2 years down-payment), then we issued a post dated check for the remaining months. Hindi pa nagsisimula ang construction. Maybe this December or January. Pero nag apply na kami ng bank housing even before we paid the half down-payment. Just last week we signed the housing loan with the bank. Now the developer have received the LOG. Now the developer is asking us to sign Deed of Reconveyance, DOR SPA, T&C, Conformity Letter.

Pagkaka intindi ko dito, kukunin na ng developer yung housing loan amount from the bank kahit hindi pa start ng construction. Which will result in us paying the post dated check we released to the developer + the monthly of housing loan. Which is malaki at baka ma drain yung funds namin at baka hindi kaya. Do you think we can delay signing of these documents? We will still talk with the developer and agent. We just want to come prepared in what to say or ask. Baka hindi lang namin naintindihan itong mga docs. I feel this will set us up to fail the double monthly. Although kasama sa condition ng bank na they will release the loan kung 50% competed na, which fine with us.

Any help will be appreciated

The Conformity Letter they want us to sign:

>Subject: Letter of Guaranty (property name) (property address)

>Dear Sps. (our surname),
This is in relation to the approval by (bank name) of your housing loan which is to be used for partial/full payment of the balance of your purchase price covering the above named property. The aforesaid bank issued their Letter of Guarantee (LOG) for your housing loan at this time that the project where the purchased property is located is still under land development and/or the housing unit, if any is still to be built.

>Should you wish for the early release of loan proceeds, despite that the collateral for your approved housing loan is not yet completely developed/built, and you are not yet enjoying the benefits of occupancy; we can advise the bank for the same, PROVIDED that, you consent likewise to the early payment of the loan amortization to the bank, the month immediately following the release of loan proceeds inclusive of interest at prevailing bank rates, among others. Thereafter, the bank will require us to execute a Deed of Undertaking to transfer the title and tax declaration (a.k.a. collateral documents) to your name with a guarantee to buyback your loan in the event that you incur defaults in the payment of your loan amortization during the period that we have not yet delivered to them the collateral documents. In view of which, you undertake to diligently pay on time your bank monthly amortizations and that the incident of buyback will not occur during the time that we are yet to deliver the collateral documents to the bank and you agree that turnover of the property in your favor will be after completion of land development/house construction. Otherwise, and in the event of buyback, we regret that we shall strictly enforce our rights to collect from you in lumpsum the entire amount of your loan and other buyback charges with interest, and your account cannot be accommodated under our inhouse financing. You likewise relieve (property developer) of any liability whatsoever resulting from your decision of an early loan release or in the event of buyback.

>If you are agreeable to the foregoing conditions, please affix your signature below as conformity and return to us an originally signed copy so we can arrange with the bank to release your loan proceeds.


Below is part of the email, not part of the docs they want us to sign:

>4. For processing of LOG, the management requires the 2 years advance RPT to be included in the computation of your final outstanding balance with Suntrust. This is one of the requirements in the processing of transfer Title once the account will be taken-out by the bank. (Subject for computation by our handling officer, kindly wait for further notice).

>In order to proceed the process of your Letter of Guaranty (LOG) prior to unit acceptance, kindly also sign the attached Letter of Conformity.