Create a bespoke document in minutes, or upload and review your own.
Get your first 2 documents free
Your data doesn't train Genie's AI
You keep IP ownership of your information
Notice to Pay
"Require a notice to pay for a tenant who is 15 days overdue on rent for a residential property, including a 7-day deadline to pay the outstanding amount of $1,200 to avoid eviction proceedings."
What is a Notice to Pay?
A Notice to Pay is a formal written demand asking someone to settle an overdue debt or payment obligation. In the Philippines, landlords, creditors, and businesses commonly use this document as a first step before taking more serious legal action under the Civil Code.
The notice gives the recipient a specific deadline to pay, usually 15-30 days, and outlines the exact amount owed plus any late fees or interest. When properly delivered, it creates an official record that the debtor was informed of their obligation, which can be important if the case later goes to court or requires enforcement through legal channels.
When should you use a Notice to Pay?
Send a Notice to Pay when a tenant, borrower, or business partner has missed payment deadlines and informal reminders haven't worked. This formal demand becomes essential before filing collection cases in Philippine courts, especially for rental arrears, loan defaults, or unpaid business invoices that exceed ₱100,000.
Time your notice strategically - typically after payment is 30 days late but before the debt becomes too old to collect under Philippine law. The notice protects your legal rights and often motivates payment without court action, saving both parties time and money. For commercial debts, send it before the account ages beyond 6 months to maintain strong documentation for potential litigation.
What are the different types of Notice to Pay?
- Basic Payment Demand: Standard notice used for general commercial debts, including clear payment terms and consequences
- Rental Arrears Notice: Specifically tailored for landlord-tenant situations, citing rental laws and lease agreement terms
- Bank Collection Notice: Used by financial institutions for loan defaults, often including account details and interest calculations
- Business Invoice Notice: Focuses on unpaid commercial invoices, typically including payment history and business relationship context
- Final Demand Notice: More strongly worded version that serves as a last warning before legal action, often citing specific Philippine Civil Code provisions
Who should typically use a Notice to Pay?
- Landlords and Property Managers: Send Notice to Pay documents to tenants with overdue rent, often through their legal representatives
- Banks and Financial Institutions: Issue notices to borrowers who have defaulted on loans or missed scheduled payments
- Business Owners: Use notices for collecting unpaid invoices from customers or business partners
- Legal Professionals: Draft and review notices, ensuring compliance with Philippine debt collection laws
- Collection Agencies: Send notices on behalf of creditors as part of their debt recovery process
How do you write a Notice to Pay?
- Debt Details: Compile exact amounts owed, payment due dates, and any late fees or interest charges
- Supporting Documents: Gather contracts, invoices, payment history, and correspondence about the debt
- Debtor Information: Confirm current contact details and correct legal name of the person or entity owing money
- Payment Terms: Specify acceptable payment methods and reasonable deadline for settlement
- Delivery Method: Plan how to send the notice (registered mail recommended) and keep proof of delivery
- Legal Requirements: Use our platform to ensure your notice includes all mandatory elements under Philippine law
What should be included in a Notice to Pay?
- Clear Identification: Full legal names and addresses of both creditor and debtor
- Debt Details: Specific amount owed, original due date, and calculation of any interest or penalties
- Payment Terms: Clear deadline for payment and acceptable payment methods
- Legal Basis: Reference to underlying contract, invoice, or obligation creating the debt
- Consequences: Statement of intended legal action if payment isn't made by deadline
- Signature Block: Creditor's authorized signature, position, and date of notice
- Delivery Method: Proof of service clause indicating how notice was delivered
What's the difference between a Notice to Pay and a Notice of Default?
A Notice to Pay differs significantly from a Notice of Default in several key aspects, though both deal with unpaid obligations. While a Notice to Pay focuses specifically on collecting money owed, a Notice of Default covers broader contract violations and triggers different legal consequences under Philippine law.
- Purpose and Scope: Notice to Pay solely demands payment of specific amounts, while Notice of Default can address any contract breach, including non-monetary obligations
- Legal Timeline: Notice to Pay typically gives 15-30 days for payment, while Notice of Default often allows longer cure periods depending on the contract terms
- Consequences: Notice to Pay leads to collection actions, while Notice of Default can trigger contract termination, damages claims, or other remedies
- Required Content: Notice to Pay must detail exact amounts and payment terms, while Notice of Default needs to specify the breach and requested corrective actions
Download our whitepaper on the future of AI in Legal
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it