KNIGHTSBRIDGE Contract to Sell: Indemnity and Legal Fees/Venue clause

KNIGHTSBRIDGE Contract to Sell:  Indemnity and Legal Fees/Venue clause

We have such a clause in ours for lesser amounts that I will post at bottom.  I know, why did we as well as others sign with such a clause not striking it out.  Way too much trust in all those having to do with the selling of the units.  The trust for any of those individuals was over for me long ago.  I will never trust any of them ever again.

Is this clause in other projects such as Gramercy?  If so, consider striking it out.  Contracts go both ways and the buyer should not be forced to sign a contact with such an onerous clause.  Read the following very carefully and especially the second part of the second sentence.

Due to the small print of the image here is the text:

"25.  INDEMNITY AND LEGAL FEES/VENUE"

"Should the SELLER resort to the Courts for the protection of its rights or redress of its grievances under this Contract, the BUYER hereby agrees to pay the SELLER, by way of legal fees, a sum equivalent to Twenty Percent (20%) of the total amount claimed, but which in no case shall be less than FIFTY THOUSAND PESOS (PHP50,000.00).  An additional sum of FIFTY THOUSAND PESOS (PHP50,000.00) shall be imposed if it reaches the Court of Appeals or the Supreme Court and in addition, the costs and expenses of litigation, and the damages, actual or consequential to which the SELLER may be entitled by law.  The term "court" includes the Housing and Land Use Regulatory Board ("HLURB"), and any other government agency having quasi-judicial authority.

This Contract shall be governed by the laws of the Republic of the Philippines.  Any and all actions or suits in connection with or arising from this Contract shall be filed with or instituted in the proper courts of Makati City, to the exclusion of all other venues."

Soho Central's Contract to Sell clause:

"SECTION 6.  DEFAULT"

"c)  In case the SELLER is forced to institute legal action to enforce its rights under this contract, the BUYER shall pay the SELLER, by way of Attorney's fees, a sum which in no case shall be less than Fifteen Thousand (P15,000.00) Pesos if the case is in the Municipality/City Court, not less than Twenty Thousand (P20,000.00) Pesos if the case reaches the Regional Trial Court, and not less than Fifty Thousand (P50,000.00) Pesos if it reaches the Court of Appeals or the Supreme Court.  The SELLER shall also be entitled to the costs of its litigation and damages, actual or consequential, as may be provided for by law."

From 15,000 pesos to 50,000 pesos?  Inflation has certainly increased in the Philippines much more than reported in the papers from 2009 to 2013.

I know, have your lawyer write the same clause but for you the BUYER against the SELLER in an addendum to the Contract to Sell if not yet signed.  If they do not want to sign, that should tell you something.

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Addendum

The following is an attachment to INDEMNITY AND LEGAL FEES/VENUE clause:

"Should the BUYER resort to the Courts for the protection of its rights or redress of its grievances under this Contract, the SELLER hereby agrees to pay the BUYER, by way of legal fees, a sum equivalent to Twenty Percent (20%) of the total amount claimed, but which in no case shall be less than FIFTY THOUSAND PESOS (PHP50,000.00).  An additional sum of FIFTY THOUSAND PESOS (PHP50,000.00) shall be imposed if it reaches the Court of Appeals or the Supreme Court and in addition, the costs and expenses of litigation, and the damages, actual or consequential to which the BUYER may be entitled by law.  The term "court" includes the Housing and Land Use Regulatory Board ("HLURB"), and any other government agency having quasi-judicial authority."