Land payment woes

Dear Atty. Peachy,

We have been living on land owned by my father’s distant relative since the 1960s. In 2010, our relative’s wife offered to sell my parents the land at P700 per square meter for 800 square meters. Over the years, we have made payments totaling P252,500. Recently, the owners informed us that the new rate shall be P900 per square meter, to be computed from 2015. Can they legally increase the purchase price of the land from P700 to P900 per square meter?

Mark

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Dear Mark,

Based on Philippine law, the rights and obligations of the parties involved in your situation would largely depend on the terms of the agreement between your parents and your relative’s family regarding the land. It is essential to review any written contracts or documents regarding the sale or transfer of the land to determine the agreed-upon terms and conditions.

If there is a written contract or agreement between the parties that clearly states the price per square meter of the land and the terms of payment, both parties are bound by the terms of that contract. If the agreement states that the land will be sold at P700 per square meter, then your parents should generally pay based on this agreed-upon purchase price, unless there are specific provisions in the contract allowing for price adjustments. Unless stipulated in the contract, there should be no automatic annual increase in the price per square meter of the land. Any changes in the price should be agreed upon by both parties.

It is crucial to review the terms of the agreement entered into between your parents and your relative’s family to ascertain the rights and obligations of both parties.

Atty. Peachy Selda-Gregorio