Agreement To Sell Immovable Property Template for Philippines

An Agreement To Sell Immovable Property is a crucial preliminary contract in Philippine real estate transactions, used when parties wish to establish legally binding terms for a property sale before executing the final Deed of Absolute Sale. This document is particularly important in situations involving installment payments or when certain conditions must be met before the final transfer of ownership. It must comply with the Philippine Civil Code, Property Registration Decree (PD 1529), and relevant tax regulations. The agreement typically includes comprehensive details about the property, payment terms, warranties, and conditions precedent, while protecting both parties' interests during the transition period before the final sale. It's commonly used in both residential and commercial property transactions and serves as a foundation for the eventual property transfer.

1. Parties: Identifies and provides complete details of the Seller and Buyer, including their legal names, civil status, addresses, and tax identification numbers

2. Background: Establishes the context of the agreement, including the Seller's ownership of the property and the parties' intention to enter into a sale transaction

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent ambiguity

4. Subject Matter of Sale: Detailed description of the property being sold, including its location, boundaries, and technical description as per title

5. Purchase Price: Specifies the total purchase price, payment terms, and schedule of payments

6. Mode of Payment: Details the method and schedule of payment, including initial deposit, subsequent installments, and final payment

7. Representations and Warranties: Seller's declarations regarding property ownership, absence of liens/encumbrances, and other material facts about the property

8. Conditions Precedent: Prerequisites that must be fulfilled before the execution of the final Deed of Absolute Sale

9. Rights and Obligations: Specifies the duties and responsibilities of both parties during the term of the agreement

10. Default and Remedies: Outlines consequences and available remedies in case of breach by either party

11. Transfer of Ownership: Conditions and process for the eventual transfer of property ownership

12. Taxes and Expenses: Allocation of responsibility for various taxes, fees, and expenses related to the transaction

13. Governing Law: Specifies that Philippine law governs the agreement and its interpretation

14. Dispute Resolution: Mechanism for resolving disputes between parties

15. Miscellaneous Provisions: Standard contract provisions including severability, entire agreement, and amendments

16. Execution: Formal closing section with signature blocks for parties and witnesses