Dream house turned into a nightmare

“Experience is the best teacher, and the worst experiences teaches the best lessons”. -unknown-

Way back in 2016, a year after our marriage. We prayed for provision to acquire land. We had many site viewings in many places in Baguio City. We also researched concepts on house designs. We brainstormed about what we wanted for our future house. We had plans.
2016 to 2017, we prayed harder, we worked hard, and we saved money.
2018, God answered our prayers and we were able to buy 184 square meters of land near a prestigious school in the City of Pines. We bought it for around P10,000 per square meter.
2019 was the preparation, planning, fulfillment of requirements, execution of the house and our house bank loan.
January of 2020 was the start of house construction. We worked so hard in the companies that we are affiliated with. Most of our commissions and travel incentives converted into cash went to the house construction expenses. It was in March of 2020, that our problems began.
1. the second release of our bank loan was disapproved because of the wrong lay-out of the house.
2. Since the house is beside the creek line. There should be 3 meters easement or set back away from the creek upon the review of the appraiser of the bank, the easement was less than 3 meters from the creek.
3. The property has encroached on the other side, future problems will occur if the owner of the lot beside us will construct.
4. We need to transfer our loan to another bank. We need to shoulder the transfer fees and other related fees.
5. Start of the lockdown because of the covid 19 pandemic
6. From the start of the house construction, Our architect did not show up (technical side) without any clear explanations. We updated him on the progress of the construction via text messages and Facebook Messenger and called him many times. Sadly, he had many excuses, did not even answer our calls, nor did he call back.
7. From almost 9,600,000.00 approved bank loan in the original Bank, the amount went down to 7,600,000.00 in the other bank. Our original loan amount dropped by 2,000,000.00. Because of that, our savings were compromised, and the need to borrow money arose.
8. We sold our other lot in the city.
9. It was in February 2021, As the contractor stated that the original square meter of the plan exceeded 50sqm. That was the time we sought help from the brother of our friend who is an architect to help us measure the total floor area of the house. Based on the measurements, it has an additional floor area of 17 sqm from the original plan. Every sqm counts because in the agreement we will pay 28,000 per sqm.
10. It was in May of 2021, that we found out that the house plan was not executed properly most especially the structural plan of the house. Mga bakal sa isang column or poste ay 10 pieces ginawang 8, ang apat na bakal na 20mm ginawang 16mm lahat. Supposedly, the slabs were two-way but they made them one-way slabs and the firewall should be shear wall but they made it concrete hollow blocks instead. The depth of the foundation was shallow, they did not follow also the recommendation of the soil test.
11. We had a third-party analysis, Stensil test, and concrete test, the result showed it should have to be retrofit. A proper occupancy permit should be held. In short, it is not safe to live. Sad to say.
12. Our previous Pastor talked to us that instead of filling a case, we need to do it in God’s way, we are brothers and sisters in Christ. Since we are in the same church before. Giving them the benefit of the doubt, we took advantage of the pieces of advice from the Pastor.
13. September 2021, We made a better agreement with a lawyer. In the agreement, the contractor will pay 500,000 cash, and 10 monthly cheques, assumption of the bank loan and lots. Last week of April 2022, they assumed the bank loan. Unfortunately, the lots that the contractor paid to us were all not in good faith, the papers were okay but all have problematic boundary lines.
14. Since they only assumed the house bank loan and paid 500,000 pesos cash plus 10 cheques worth 34,435.69 for 10 months, it is inadequate payment for the 184 sqm lot, additional expenses in attic plus attic ladder, the labor cost, upgraded doors and windows and other appliances in the house like Franke oven, 2 Franke stove and 2 range-hood and other expenses.
15. Since we have little to no knowledge on construction and real estate, they took advantage of it to gain money over relationships.
16. They altered the notarized Deed of Absolute Sale without our permission and our lawyer’s permission.

DISCLAIMER: The learnings below are based on our personal experiences on the process that we have been through.

Learnings:
1. TRUST is not enough, make DUE DILIGENCE on the company or contractor who will do our dream house.
2. Not all Christians and leaders in the church are Trustworthy. Don’t be deceived! Most Christians have fear in God but they don’t have respect and they abuse the Grace of the Lord.
3. Check documents in the registry of deeds and the assessor’s office. make DUE DILIGENCE. Sometimes there are double or triple sales.
4. Don’t forget the importance of the Geodetic Engineer. Before buying a lot, and or before building a house RELOCATION is the KEY! Better get also a Geodetic Engineer that can’t be manipulated. Who has INTEGRITY and has PROFESSIONALISM.
5. After having due diligence on all the papers, the location, and the correct boundary lines, get a lawyer to notarize everything that you have agreed upon with the seller of the property and or the contractor.
6. For those people who opt to buy a lot. You need also to research about suBdivision that are PIECEMEAL so that you won’t have any problems to get zoning clearance from City Planning and Development Office that is a prerequisite in getting building permit from the City Buildings and Architecture office (CBAO).
7. All transactions should have a black and white or have a written agreement. An oral agreement usually give future problems.
8. If payment is already given, if the seller of the property or the contractor does not have an official receipt, a WRITTEN LETTER is a MUST that they received the payment and must be signed by both parties.
9. Take a technical person that is a licensed engineer or a licensed architect that would check if the contractor is doing the right thing. If the original technical person did not show up, replace it as soon as possible. It would be better than the contractor and the technical person do not know each other to avoid internal agreements that the owner doesn’t know.
10. If the contractor can’t give bills of materials before the construction and upon purchase of materials. Then it is a RED FLAG!
11. We both experienced licensed architect and non licensed contractor. They both gave us heartaches. If looking for a great team to do your dream house. Make a DUE DILIGENCE. Take people that values their INTEGRITY And has PROFESSIONALISM.
12. Excitement is okay but being cautious and diligent are smarter.
13. If you like to know if the house you would like to buy or the house construction is in good condition and structurally stable, there is a test for that. Ask the help of a licensed civil engineer which shows great professionalism.
14. It is better to be vigilant than to be sorry in the future.

Conclusion:
We dreamed of having a house and lot because:
1. It is a hassle transferring addresses from one place to another, changing addresses to our special documents now and then.
2. Having dilemmas to how long the owner of the apartment will lend the place and when will increase the rent.
3. It is hard that we are NOMAD ( no permanent address) I guess whose renting could relate.
4. Owning a property with an income-generating is an asset.
5. No limits to renovating.
6. We can buy anything for the house.
7. We want to give our family a comfortable living and to call our own.
We have been solving this for more than 2 years now. We did not expect this to happen. The journey is a roller coaster, was not easy. We were judged by others because of misinformation and It was a lesson for us.
Now, We are writing this to give awareness to those people who are planning to buy a land or a house and lot and to those who would like to start a house construction so that you won’t experience the same or similar problems like this.

PS. Special thanks to those who helped and who are helping us in this situation.

“Positions are TEMPORARY, Ranks and Titles are LIMITED, but the way you TREAT people, will ALWAYS be REMEMBERED.” -Happy Life-