Agreement For Sale Of Mortgaged Property Template for Philippines

The Agreement For Sale Of Mortgaged Property is a specialized legal instrument used in the Philippines when transferring ownership of property that carries an existing mortgage. This document becomes necessary when a property owner wishes to sell their mortgaged property before the mortgage is fully paid off. It must comply with various Philippine laws including the Civil Code, Property Registration Decree (PD 1529), and Act No. 3135 on mortgage sales. The agreement includes crucial details about the property, existing mortgage, payment terms, mortgage settlement arrangements, and conditions for transfer of ownership. It serves to protect all parties' interests - the seller's right to sell, the buyer's right to clean title upon completion, and the mortgagee's security interests. The document is particularly important in the Philippine context where property transactions often involve mortgages and require specific regulatory compliance.

1. Parties: Identifies all parties to the agreement including the seller (current property owner), buyer, and may reference the existing mortgagee (bank/financial institution)

2. Background: Describes the current ownership status, existing mortgage details, and the parties' intention to enter into a sale agreement

3. Definitions: Defines key terms used throughout the agreement including Property, Mortgage, Purchase Price, Completion Date, etc.

4. Sale and Purchase: Details the agreement to sell and purchase the property, subject to the existing mortgage conditions

5. Purchase Price and Payment Terms: Specifies the total purchase price, payment schedule, and method of payment, including provisions for settling the outstanding mortgage

6. Property Details: Comprehensive description of the property including location, boundaries, title details, and current encumbrances

7. Mortgage Details: Information about the existing mortgage, outstanding amount, and arrangements for settlement

8. Conditions Precedent: Conditions that must be satisfied before the sale can proceed, including mortgage-related requirements

9. Completion: Process and requirements for completing the sale, including documentation and registration requirements

10. Representations and Warranties: Statements and guarantees made by both parties regarding the property and their capacity to enter into the agreement

11. Risk and Insurance: Provisions regarding property risk transfer and insurance requirements during the sale process

12. Default and Remedies: Consequences and remedies in case of default by either party

13. Governing Law and Jurisdiction: Specifies Philippine law as governing law and defines jurisdiction for dispute resolution