Contract To Sell Installment Payment Template for Philippines

The Contract To Sell Installment Payment is a vital document in Philippine real estate transactions where buyers prefer or require periodic payment arrangements instead of full upfront payment. This contract type is specifically designed to protect both sellers' and buyers' interests, with the seller retaining ownership until full payment is received, while the buyer gains the right to use the property and the promise of ownership upon completing all payments. The document must comply with the Civil Code of the Philippines and the Maceda Law, which provides specific protections for buyers in installment schemes, including grace periods and refund rights. Typically used in residential and commercial property sales, this agreement includes comprehensive details about the property, payment terms, default provisions, and conditions for title transfer. It's particularly relevant in the current Philippine real estate market where installment purchases have become increasingly common among both individual and corporate buyers.

1. Parties: Identifies and provides complete details of the seller and buyer, including their legal capacity to enter into the contract

2. Background: Establishes the context of the sale, including brief description of the property and parties' intention to enter into an installment payment arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Property Description: Detailed description of the property being sold, including location, boundaries, and title information

5. Purchase Price and Payment Terms: Specifies the total purchase price, down payment, installment amounts, payment schedule, and interest rate if applicable

6. Terms of Payment: Details the mechanics of payment, including acceptable payment methods and where payments should be made

7. Default and Remedies: Outlines what constitutes default and the remedies available to parties, incorporating Maceda Law provisions

8. Transfer of Title: Conditions for the transfer of title, typically upon full payment of the purchase price

9. Representations and Warranties: Standard representations and warranties from both parties regarding their capacity and the property's condition

10. Taxes and Expenses: Allocation of responsibility for taxes, registration fees, and other transaction-related expenses

11. Possession of Property: Terms regarding the buyer's possession and use of the property during the installment period

12. General Provisions: Standard clauses including governing law, notices, entire agreement, and amendment procedures

13. Execution: Signature blocks and notarization requirements