Land Installment Contract Template for Philippines

The Land Installment Contract is a crucial legal instrument in Philippine real estate transactions, particularly suited for situations where buyers cannot or prefer not to make a full upfront payment for property purchase. This document type is extensively regulated under Philippine law, including the Civil Code and the Maceda Law (RA 6552), which provides specific protections for buyers in installment sales of real estate. The contract is commonly used in both residential and commercial property transactions, providing a structured approach to property acquisition while protecting both buyer and seller interests. It includes essential elements such as property details, payment schedules, default provisions, and transfer conditions, all aligned with Philippine legal requirements. The document is particularly relevant in the current Philippine real estate market, where installment purchases have become increasingly common for both development properties and existing real estate.

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

2. Background: Context of the transaction, including brief description of the property and parties' intention to enter into an installment sale arrangement

3. Definitions: Definitions of key terms used throughout the contract, including 'Property', 'Purchase Price', 'Installment Payments', 'Default', etc.

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

5. Purchase Price and Payment Terms: Total purchase price, down payment amount, installment amounts, payment schedule, and interest rate if applicable

6. Mode of Payment: Specified methods of payment, payment locations or accounts, and payment verification procedures

7. Rights and Obligations of the Seller: Seller's commitments, including maintenance of clear title, payment of prior obligations, and property delivery conditions

8. Rights and Obligations of the Buyer: Buyer's commitments, including timely payments, property maintenance, and compliance with regulations

9. Default and Remedies: Consequences of default, grace periods as per Maceda Law, and procedures for remedy

10. Transfer of Title: Conditions and process for the transfer of property title upon completion of payments

11. Taxes and Expenses: Allocation of taxes, registration fees, and other transaction-related expenses

12. Representations and Warranties: Statements of fact by both parties regarding their capacity to contract and the property's condition

13. Governing Law: Specification of Philippine law as governing law and relevant statutory references

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue specifications