Hi Atty.

Sy,

We are planning to have units sold as rent to own scheme. Here are some questions
that we needs clarification.

1. Rent to own - buyer moves in upon paying 30 to 50% downpayment. 50% - 70%
spreadout and payable in 12 months without interest. In case the buyer defaults in
his/her payment how to we move her out of the premises? What documents should
we let them sign in order to protect us?

Just put it on the contract, and add a grace period to pay subject to the
extension granted by the lessors discretion or at the request of the lessee. This
is w/o prejudice to to still exercise the right to evict the lessee. The contract of
lease would be sufficient to protect the lessor. (note: lease to own arrangement
is not covered by the maceda law or the rent control act) which means parties
can stipulate how long the grace period is in case of non payment among other
things and the owner can stipulate the amount of rent to paid by the lessee.

2. Can we cut his/her utilities like (electric and water).

Yes in case of default and if it is provided for in the contract of lease. It is not
prohibited by the law.

3. Once he moves in, can we impose him/her to pay the association dues even if the
title is still under the name of the developer?

Yes. It is a common clause in the lease contract. Although the buyer may also
seek protection to assure them that once full payment has been made the title
will be able to pass to them. Additional clauses in the contract will do just that