Agreement For Sale Of Leasehold Property Template for Philippines

The Agreement For Sale Of Leasehold Property is a specialized legal document used in the Philippines when transferring rights and interests in leased property from one party to another. This agreement is essential when the seller holds a lease on a property and wishes to transfer their leasehold interest to a buyer, rather than selling the freehold interest. The document must comply with Philippine property laws, including the Civil Code of the Philippines, Property Registration Decree, and relevant tax regulations. It typically includes detailed provisions about the property, existing lease terms, purchase price, payment arrangements, and necessary approvals (particularly from the landlord). This type of agreement is commonly used in commercial property transactions, particularly in areas where freehold ownership is restricted or in building complexes where only leasehold interests are available.

1. Parties: Identification of the seller and buyer with complete details including names, addresses, tax identification numbers, and citizenship status as required by Philippine law

2. Background: Context of the transaction, including brief description of the leasehold interest being sold and current lease status

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Lease, Assignment Date, and other relevant terms

4. Sale and Purchase: Core terms of the sale including the leasehold interest being sold and confirmation of the buyer's agreement to purchase

5. Purchase Price: Details of the purchase price, payment terms, and method of payment in accordance with Philippine banking regulations

6. Conditions Precedent: Conditions that must be satisfied before completion, including landlord's consent and regulatory approvals

7. Seller's Representations and Warranties: Seller's warranties regarding their authority to sell, status of the lease, and condition of the property

8. Buyer's Representations and Warranties: Buyer's warranties regarding their capacity to purchase and compliance with relevant laws

9. Completion: Details of the completion process, including timing, location, and documents to be delivered

10. Post-Completion Obligations: Obligations of both parties after completion, including registration and notification requirements

11. Tax Provisions: Allocation of tax responsibilities between parties, including transfer taxes and documentary stamp tax

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

13. Notices: Process and addresses for serving formal notices under the agreement

14. General Provisions: Standard contract clauses including entire agreement, amendments, and severability