Deed Of Contract To Sell Template for Philippines

The Deed of Contract to Sell is a crucial document in Philippine real estate transactions, commonly used when property sales involve installment payments or when certain conditions must be met before final transfer of ownership. This document type is specifically recognized under Philippine law and provides protection for both sellers and buyers, particularly through provisions of the Maceda Law (RA 6552) for installment sales. The contract typically includes detailed property descriptions, payment terms, conditions precedent to the final sale, and mechanisms for handling default or termination. It's particularly important in pre-selling arrangements, development projects, and situations where the full purchase price is paid over time. Unlike a Deed of Absolute Sale, this contract creates a binding commitment to sell but reserves the transfer of title until all conditions are fulfilled.

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

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

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

4. Property Description: Detailed description of the property including lot number, location, boundaries, and certificate of title details

5. Purchase Price: Total consideration and detailed payment terms including installment schedule if applicable

6. Terms of Payment: Payment mechanics, due dates, and consequences of default, including Maceda Law provisions

7. Conditions Precedent: Conditions that must be fulfilled before the final Deed of Absolute Sale is executed

8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, absence of liens, and authority to sell

9. Buyer's Representations and Warranties: Buyer's declarations regarding financial capacity and compliance with terms

10. Rights and Obligations: Specific duties and responsibilities of both parties during the contract period

11. Default and Remedies: Consequences of breach and available remedies to either party

12. Termination: Circumstances under which the contract may be terminated and the consequences

13. Execution of Deed of Absolute Sale: Conditions and process for executing the final deed of sale

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

15. Execution: Signature blocks, notarization requirements, and witness provisions