How the House and Lot package contract can be dissolve?
3 years ago we went into a House and Lot contract to a certain developer, 20% downpayment without interest payable in 2 years and another 10% while preparing for the house plans and issued 36 post dated cheques. The 20% downpayment has been paid for 2 years but somehow we decided to convert the package into lot only through emails and ask all information what could be the new figures and gave us the retain amount and some amount are deducted and balance to be paid.
Finally after 5 months my loan was approved and ready to pay them in full for lot only and updated them for the balance I need to pay, I was surprised for the statement of account gave to me they started to imposed a 21% interest per annum on my monthly payment and certain amount credited into the principal payment.
My question, is it legal for them to do this while there no new contract signed and agreed upon, my existing contract still active and not dissolve and still under 30% downpayment without interest.
Is it legal for the developer to do this without any new agreement or contract signed for lot only before I paid in full to clear my account.
Anybody can reply will be a great help.
Thanks OFW here in KSA.
Regards,
Reynaldo
