Advance Agreement For Sale Of Land Template for Philippines

The Advance Agreement For Sale of Land is a crucial document in Philippine real estate transactions where parties wish to formalize their commitment to a land sale before executing the final deed of absolute sale. This type of agreement is commonly used when there's a need for a structured payment arrangement, when due diligence is still ongoing, or when certain conditions must be met before final sale. It provides legal protection under Philippine civil law for both parties during the interim period between initial agreement and final sale. The document typically includes detailed property descriptions, payment terms, timelines, and conditions precedent, while ensuring compliance with local property laws and registration requirements. It's particularly relevant in situations involving installment payments, property development projects, or complex real estate transactions requiring extended completion periods.

1. Parties: Identification of the Seller and Buyer with complete legal names, addresses, and civil status as required under Philippine law

2. Background: Context of the transaction, including brief description of the property and parties' intention to enter into a future sale

3. Definitions: Key terms used throughout the agreement, including technical and legal terms specific to Philippine real estate

4. Property Description: Detailed description of the land including lot number, survey number, title details, boundaries, and technical description as per title

5. Purchase Price: Total consideration for the property and detailed breakdown of payment terms

6. Payment Terms: Schedule of payments, including advance payments, installments if any, and final payment conditions

7. Conditions Precedent: Prerequisites that must be fulfilled before the final deed of sale can be executed

8. Timeline and Completion: Specific dates or periods for various stages of the transaction, including the target date for executing the final deed of sale

9. Seller's Representations and Warranties: Declarations regarding ownership, absence of liens, authority to sell, and other property-related assurances

10. Buyer's Representations and Warranties: Declarations regarding legal capacity to purchase and financial capability

11. Rights and Obligations: Detailed responsibilities of both parties during the period before final sale

12. Default and Remedies: Consequences of breach by either party and available legal remedies

13. Governing Law and Jurisdiction: Specification of Philippine law as governing law and designation of competent courts

14. Execution: Formal signing requirements including need for witnesses and notarization as per Philippine law