For Sale By Owner Property Contract Template for Philippines

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For Sale By Owner Property Contract

"I need a For Sale By Owner Property Contract for my three-bedroom residential property in Makati City, Philippines, with a planned closing date of March 15, 2025, including provisions for furniture and fixtures to be included in the sale."

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What is a For Sale By Owner Property Contract?

The For Sale By Owner Property Contract is essential for property owners in the Philippines who choose to sell their property directly without a real estate broker's involvement. This document is specifically designed to comply with Philippine property laws, including the Civil Code of the Philippines, the Property Registration Decree, and local government regulations. It becomes necessary when property owners want to maintain direct control over the sale process while ensuring legal compliance and protection for both parties. The contract includes crucial elements such as property details, payment terms, warranties, and transfer procedures, adapted to meet Philippine legal requirements. It's particularly relevant in situations where the seller has sufficient knowledge of real estate transactions or has legal support but prefers to avoid broker commissions. The document must be notarized and registered with appropriate authorities to ensure validity under Philippine law.

What sections should be included in a For Sale By Owner Property Contract?

1. Parties: Full legal names, addresses, and contact details of the seller and buyer

2. Background: Brief context of the property sale and the parties' intention to enter into this agreement

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

4. Property Description: Detailed description of the property including exact address, boundaries, lot area, and Tax Declaration Number

5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments

6. Payment Terms: Detailed breakdown of payment method, installments if any, and consequences of default

7. Conditions of Sale: Essential conditions that must be met for the sale to proceed

8. Representations and Warranties: Seller's declarations regarding property ownership, absence of liens, and other material facts

9. Closing and Transfer of Title: Process and timeline for completing the sale and transferring property ownership

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

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

12. Governing Law: Specification that Philippine law governs the agreement

13. Execution: Signature blocks and notarization requirements

What sections are optional to include in a For Sale By Owner Property Contract?

1. Broker Participation: Include if any real estate broker is involved in the transaction, despite being FSBO

2. Mortgage Contingency: Include if the purchase is contingent on buyer obtaining financing

3. Property Inspection: Include if specific inspection requirements or contingencies are needed

4. Occupancy and Possession: Include if there are specific arrangements regarding when and how the buyer will take possession

5. Existing Tenancies: Include if the property has current tenants and arrangements for their continued occupancy or termination

6. Furniture and Fixtures: Include if specific items are included or excluded from the sale

7. Construction Warranties: Include for newly constructed properties or recent renovations

8. Homeowners Association: Include if property is part of an HOA or similar organization

What schedules should be included in a For Sale By Owner Property Contract?

1. Schedule A - Property Details: Comprehensive technical description of the property, including lot plan, technical description, and boundaries

2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, amounts, and due dates

3. Schedule C - Property Documents: List of all property-related documents provided by seller

4. Schedule D - Included Items: Detailed list of fixtures, furniture, or other items included in the sale

5. Schedule E - Outstanding Requirements: List of permits, clearances, or certificates needed to complete the transaction

6. Appendix 1 - Property Title: Copy of the current property title

7. Appendix 2 - Tax Declarations: Copies of current tax declarations and receipts

8. Appendix 3 - Property Photos: Recent photographs of the property and its major features

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
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Real Estate

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