The Land Contract (Real Estate) is a fundamental legal instrument used in Philippine real estate transactions for documenting the transfer of land ownership. It serves as the primary agreement between parties in land sale transactions, ensuring compliance with Philippine property laws and regulations. This document is essential when purchasing or selling any type of land property in the Philippines, whether for residential, commercial, or agricultural purposes. The contract must adhere to strict legal requirements including proper identification of parties, detailed property description, clear payment terms, and proper execution before a notary public. It must also address specific considerations such as foreign ownership restrictions, agricultural land reform laws, or ancestral domain rights where applicable. The document's format and content are influenced by various Philippine laws including the Civil Code, Property Registration Decree, and local government regulations.
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1. Parties: Identification of the seller and buyer, including complete legal names, civil status, nationality, and addresses as required by Philippine law
2. Background: Context of the transaction, including brief property history and purpose of the sale
3. Definitions: Definitions of key terms used throughout the contract
4. Property Description: Detailed technical description of the land including boundaries, area, and TCT/CCT number as registered with the Register of Deeds
5. Purchase Price: Statement of the agreed purchase price and payment terms
6. Mode of Payment: Detailed breakdown of payment schedule and approved payment methods
7. Representations and Warranties: Seller's declarations regarding property ownership, absence of liens, and other legal guarantees
8. Conditions Precedent: Requirements that must be met before the sale can be completed
9. Transfer of Title: Process and timeline for transferring property ownership
10. Taxes and Expenses: Allocation of responsibility for transfer taxes, registration fees, and other transaction costs
11. Possession: Terms and timing of transfer of physical possession of the property
12. Governing Law: Specification of Philippine law as governing law and relevant jurisdictions
13. Execution: Signature blocks and notarization requirements
1. Broker Involvement: Details of real estate broker involvement and commissions, required if a licensed broker is involved
2. Mortgage Provisions: Required if the purchase is financed through a mortgage
3. Foreign Ownership Compliance: Required for foreign buyers, detailing compliance with ownership restrictions
4. Agricultural Land Provisions: Required if the land is classified as agricultural, including CARP compliance
5. Ancestral Domain Compliance: Required if the property is within or adjacent to ancestral domains
6. Environmental Compliance: Required if the property requires environmental clearances or has environmental restrictions
7. Development Obligations: Required if the contract includes obligations for land development
8. Subdivision Provisions: Required if the land is part of a subdivision
9. Zoning Compliance: Required if there are specific zoning requirements or restrictions
1. Property Documents: Copies of title, tax declarations, and technical description
2. Payment Schedule: Detailed breakdown of payment terms and installments
3. Property Tax Certificates: Current tax clearances and payment history
4. Survey Plans: Approved survey plans and technical descriptions
5. Photos and Maps: Recent photographs of the property and location maps
6. Due Diligence Results: Results of title search and other legal verifications
7. Government Clearances: Relevant permits and clearances from government agencies
8. Special Power of Attorney: If any party is represented by an attorney-in-fact
9. Board Resolutions: If any party is a corporation, authorizing the transaction
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