UNFORSEEN DELAYS

Once upon a time, a newlywed couple purchased a house and lot from a developer through a bank loan.

One day, they decided to sell the property. Since it was still mortgaged, their first step was to settle the existing mortgage to release the title to the sellers. Only then could they proceed with signing the Deed of Absolute Sale. The buyer was willing to pay enough earnest money to cover the balance.

When the sellers asked their bank how long it would take to release the title, the bank replied: two weeks. They relayed this information to the buyer.

Five months after settling the loan, the bank still had yet to release the title. The bank gave several excuses for the delay, the latest being that the developer had not surrendered the title to them. The developer, however, provided the seller with a receiving copy proving that the title was with the bank.

So, the debacle over the missing title continued. By this time, the buyer wanted to back out of the deal due to the unforeseen delays and the slowdown, which made other properties more financially attractive.

Lesson: Never trust the target completion dates given by service providers. Include clauses in your offers to cover such unforeseen events.