Document background
A Deed of Sale With Assume Balance is commonly used in Philippine real estate transactions where the seller has an existing mortgage or loan that the buyer agrees to take over. This arrangement can be beneficial for buyers who may not qualify for a new loan or prefer to assume an existing one with potentially favorable terms. The document must comply with Philippine property laws, banking regulations, and local government requirements. It typically includes detailed information about the property, the remaining loan balance, payment terms, and conditions for the transfer. The deed requires careful drafting to protect all parties' interests and often needs the original lender's consent. This document type is particularly relevant in situations where the property has an existing mortgage and both parties agree to transfer both the property and the loan obligations.
