For Sale By Owner Purchase Agreement for Philippines

For Sale By Owner Purchase Agreement Template for Philippines

A comprehensive legal document used in the Philippines for direct property sales between owners and buyers without real estate broker involvement. This agreement outlines all essential elements of the property transaction including property details, purchase price, payment terms, and conditions of sale, while ensuring compliance with Philippine property laws and regulations. The document incorporates necessary provisions for title transfer, tax obligations, and both parties' rights and responsibilities under Philippine jurisdiction.

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What is a For Sale By Owner Purchase Agreement?

The For Sale By Owner Purchase Agreement is a crucial legal document used in the Philippines when property owners choose to sell their property directly to buyers without the involvement of real estate brokers. This approach has become increasingly popular as it can reduce transaction costs while maintaining legal compliance. The document must adhere to Philippine property laws, including the Civil Code, Property Registration Decree, and local government regulations. It typically includes comprehensive details about the property, precise payment terms, conditions of sale, warranties, and specific provisions for title transfer. This agreement is particularly important in protecting both parties' interests by clearly documenting all aspects of the transaction and ensuring all legal requirements for property transfer in the Philippines are met.

What sections should be included in a For Sale By Owner Purchase Agreement?

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

2. Background: Brief context of the sale, including the Seller's ownership of the property and intention to sell

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

4. Property Description: Detailed description of the property including lot number, street address, boundaries, certificate of title number, and tax declaration number

5. Purchase Price: Total purchase price, payment structure, and payment methods

6. Payment Terms: Schedule of payments, including earnest money deposit, down payment, and balance payment details

7. Conditions Precedent: Conditions that must be met before the sale becomes final, including title verification and property inspection

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

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 and available remedies in case either party fails to fulfill obligations

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

13. Entire Agreement: Statement that the document represents the complete agreement between parties

What sections are optional to include in a For Sale By Owner Purchase Agreement?

1. Financing Contingency: Used when buyer's purchase is contingent on obtaining financing

2. Property Inspection: Detailed terms for property inspection when buyer requests inspection period

3. Existing Tenancies: Required when property has current tenants and their rights need to be addressed

4. Fixtures and Fittings: Detailed list of items included/excluded in sale when needed for clarity

5. Construction Warranty: Used for newly constructed properties with ongoing builder warranties

6. Homeowners Association: Required when property is part of a subdivision or condominium with association rules

7. Environmental Matters: Needed when property has known environmental issues or requires environmental clearance

8. Broker Disclaimer: Statement confirming no broker involvement when required for legal clarity

What schedules should be included in a For Sale By Owner Purchase Agreement?

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

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

3. Schedule C - Included Items: Comprehensive list of fixtures, fittings, and other items included in sale

4. Schedule D - Property Documents: List of all property-related documents provided by seller

5. Schedule E - Outstanding Requirements: List of pending permits, clearances, or requirements to be completed

6. Appendix 1 - Property Photos: Recent photographs of the property and included items

7. Appendix 2 - Title Documents: Copies of property title and tax declarations

8. Appendix 3 - Property Inspection Report: If applicable, detailed property inspection findings

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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Residential Property

Commercial Property

Agriculture

Industrial Property

Land Development

Construction

Banking and Finance

Legal Services

Property Management

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Property Administration

Corporate Secretariat

Tax

Investment

Operations

Relevant Roles

Property Owner

Real Estate Lawyer

Legal Counsel

Property Manager

Financial Controller

Tax Advisor

Compliance Officer

Real Estate Developer

Investment Manager

Corporate Secretary

Finance Director

Business Owner

Property Administrator

Legal Administrator

Risk Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): The fundamental law governing contracts, property rights, and obligations in the Philippines. Particularly relevant are Book IV (Obligations and Contracts) and Book V (Property, Ownership, and its Modifications).
Presidential Decree No. 1529 (Property Registration Decree): Governs the registration of real property and transactions affecting registered land, including the transfer of ownership and title registration procedures.
Republic Act No. 6552 (Maceda Law): Provides protection to buyers in installment sales of real estate, including rights of buyers in case of default and payment terms.
Local Government Code (Republic Act No. 7160): Covers local government requirements for property transfers, including payment of real property taxes and securing necessary local permits.
National Internal Revenue Code: Governs the tax implications of real estate transactions, including capital gains tax, documentary stamp tax, and transfer tax requirements.
Republic Act No. 9646 (Real Estate Service Act): While FSBO doesn't require a broker, understanding this law is important for compliance with real estate practice regulations and avoiding unauthorized practice.
Republic Act No. 6957 (Build-Operate-Transfer Law): May be relevant if the property involves any government infrastructure or development projects.
Republic Act No. 7279 (Urban Development and Housing Act): Important for properties in urban areas, covering zoning regulations and urban land use policies.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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