Contract To Sell Agreement Template for Philippines

The Contract to Sell Agreement is a crucial legal instrument in Philippine business transactions, particularly in real estate and property development. It differs from a standard sale contract as it creates an obligation to sell on the part of the seller and an obligation to buy on the part of the buyer, with the transfer of ownership being conditional upon full payment. This document type is especially relevant when dealing with installment payments and is governed by Philippine law, including the Civil Code, Maceda Law, and other relevant statutes. The agreement provides security for sellers while offering buyers a structured path to ownership, making it particularly popular in property transactions, vehicle sales, and other high-value purchases where immediate full payment isn't feasible.

1. Parties: Identification of the Seller and the Buyer with complete details including names, addresses, and tax identification numbers

2. Background: Context of the transaction, including brief description of the property/goods being sold and the parties' intention to enter into a Contract to Sell

3. Definitions: Definitions of key terms used throughout the agreement

4. Subject Matter: Detailed description of the property or goods being sold, including specific identifiers, locations, or specifications

5. Purchase Price: Total purchase price, payment terms, installment schedule if applicable, and payment methods

6. Terms of Payment: Detailed payment structure, including down payment, subsequent installments, due dates, and late payment provisions

7. Conditions for Transfer of Title: Specific conditions that must be met before title/ownership transfers to the buyer, including full payment requirement

8. Representations and Warranties: Seller's warranties regarding ownership, condition of property/goods, and buyer's acknowledgments

9. Default and Remedies: Consequences of default by either party, including cancellation rights and Maceda Law provisions if applicable

10. Taxes and Expenses: Allocation of taxes, fees, and other expenses related to the transaction

11. Governing Law: Specification of Philippine law as governing law and relevant jurisdictional provisions

12. Execution: Signature blocks and notarization requirements