Contract of lease question

[boybi]

If I'm renting a property and the property got sequestered (tama ba itong term na ginamit ko? ) by the bank, will the bank still honor my unexpired contract?

[nicolodeon]

AFAIK, they will. I've a friend who was in the same situation some years back. As the new owners of the building, they honored the contract. However, I think the bank could have the right to review your contract with the previous owner. If they sniff out any reason to terminate or buy-out your contract, I think they will.

[niwde11]

or you can buy the property boybi.

[boybi]

Walang pambili kaya nga magrerent e

[BlueBimmer]

sows rent rent pa....kung walang extra cash, iloan na yan

[Altis6453]

You have to consider 2 scenarios. Was the lease constituted over the property before the foreclosure or after?

If the lease was constituted before the foreclosure, the banks would usually honor it and just allow the lease to expire. If the lease was constituted after the foreclosure proceedings and the parties to the lease know about such proceedings, I believe the bank can terminate the lease.

[niwde11]

sows rent rent pa....kung walang extra cash, iloan na yan

boybi; sabi ko sayo di lang ako ang nakaisip eh.

[box_type]

this happened to me personally, tha bank honored our lease contract and waited for it to expire and afterwhich they (bank, as the new owner) did not renew our contract so, we've no choice but to find another place, hth...

and as afaik thay are obliged to honor whatever existing contract/s that goes with the property thay are buying, anyway, hindi naman sila siguro bibili ng property kung madedehado sila sa existing contract di po ba? bangko pa?!

[nicolodeon]

I think the bank does not have a legal obligation to honor the contract between then previous owner and the existing tenant. Moral obligation? Maybe but a lot of businesses now-a-days seldom put emphasis on moral obligations. I think with in the case of fafa Boybi, yung building eh na-elit i.e. kinuha nung banko from the previous owner na ginawang collateral yun. So, kung yun lang ang collateral, the bank has no choice but to take ownership of the building. The bank would rather be able to collect something than nothing at all.

[cutedoc]

you could settle it with the bank either you buy the area or you pay the rent to them, if the contract you have signed then that it should be terminated only with agreement of both parties, then it should only be terminated by both parties which for now is the bank, so you deal with the bank.

[boybi]

sows rent rent pa....kung walang extra cash, iloan na yan

Wala nang pang-collateral

[shadow]

Wala nang pang-collateral

pwede si BB ang i-collateral mo..sigurado approved kaagad....

[leolop]

by sequestered, do you mean it's undergoing foreclosure proceedings? or the bank already foreclosed and they bought the property at the auction?

the rule is that a new owner of the property may terminate the lease if there is no notice on the title re the lease or he is not aware of the lease prior to the purchase. but a bank has a greater responsibility in determining the circumstances of a property, so i'd think the are or should be aware that the property was under lease before the foreclosure.

if it was an extra-judicial foreclosure and the previous owner was a natural person (not a corporation), the ownership of the bank is not finalized until one year after the auction, but they have a right to possess the property immediately.

i'd suggest informing the bank asap that you are leasing the property and getting an idea of their position regarding this to ease your mind. good luck!

[tsupermario]

afaik if the bank knew of the existence of a lease contract over the property before ownership was transferred to them then they have to honor the lease.

[boybi]

We didn't knew that the property that we were renting was mortgaged to a bank. It was only recently when the owner called that the bank would be conducting an inspection on the property that I found out it was mortgaged. Although it is very unlikely that the property might be foreclosed in the near future (the owner is very very rich). I just wanted to know if banks will honor the existing contracts of lease on properties that they foreclose, so that I'll know if we should make any more improvements on the property or not.

[lipot]

Ask your lola. Madami yung katsika sa banko. I'm sure alam ng bank manager ang rules & laws applied with your case.

Bigat naman problema mo. Ako problema ko lang kung pano i-operate yung PDA na ireregalo mo sa akin.