Contract To Sell Real Property Template for Philippines

The Contract to Sell Real Property is a fundamental document in Philippine real estate transactions, particularly used when the purchase price is not paid in full at signing. This contract type, distinct from a Deed of Absolute Sale, is commonly used in installment sales and pre-selling arrangements. It provides security for sellers by retaining title until full payment while giving buyers clear terms for acquiring the property. The document must comply with various Philippine laws including the Civil Code, Presidential Decree No. 957, and the Maceda Law, which provide specific requirements and protections for both parties. It's particularly important in developer-buyer transactions, property pre-selling arrangements, and any real estate sale where payment is made in installments.

1. Parties: Identifies and provides complete details of the Seller and Buyer, including their legal capacities

2. Background: States the Seller's ownership of the property and intention to sell, and Buyer's intention to purchase

3. Definitions: Defines key terms used throughout the agreement

4. Subject Matter of Sale: Detailed description of the real property, including location, boundaries, and certificate of title details

5. Purchase Price: States the total purchase price and terms of payment, including schedule of installments if applicable

6. Mode of Payment: Specifies payment methods, account details, and payment procedures

7. Conditions Precedent: Lists conditions that must be met before the sale becomes absolute

8. Representations and Warranties: Statements of fact by both parties regarding their capacity, the property's condition, and legal status

9. Rights and Obligations of the Seller: Details the Seller's commitments and responsibilities

10. Rights and Obligations of the Buyer: Details the Buyer's commitments and responsibilities

11. Default and Remedies: Specifies events of default and corresponding remedies available to either party

12. Transfer of Title: Conditions and process for the eventual transfer of title to the Buyer

13. Taxes and Expenses: Allocation of taxes, registration fees, and other transaction costs

14. Notices: Specifies how and where official communications between parties should be sent

15. Governing Law: Confirms Philippine law as governing law and specifies jurisdiction

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

17. Execution: Signature blocks and notarial acknowledgment