Land Lease To Own Contract Template for Philippines

The Land Lease To Own Contract is a specialized agreement used in the Philippines when parties wish to combine a property lease with a future purchase arrangement. This document is particularly relevant in situations where immediate purchase is not feasible or desired, but there is a clear intention for eventual ownership transfer. It must comply with Philippine property laws, including the Civil Code of the Philippines, Maceda Law (RA 6552), and local government regulations. The agreement is commonly used in both urban and rural settings, for residential, commercial, and agricultural properties. It provides flexibility for buyers while offering security to sellers, incorporating provisions for payment schedules, property maintenance, default remedies, and conversion mechanisms. The document is especially important in the Philippine context where land ownership and transfer are subject to strict regulatory oversight.

1. Parties: Identification of the Lessor/Seller and Lessee/Buyer with complete details including names, addresses, tax identification numbers, and civil status as required under Philippine law

2. Background: Context of the agreement, including brief description of the property and parties' intentions regarding the lease-to-own arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including payment terms, property references, and conversion terms

4. Property Description: Detailed description of the land including exact measurements, boundaries, and title details as registered with the Register of Deeds

5. Lease Terms: Duration of lease period, monthly rental amounts, and payment terms before conversion to purchase

6. Purchase Terms: Total purchase price, credit for rental payments, and terms for converting lease payments to purchase payments

7. Payment Provisions: Detailed payment schedule, method of payment, and allocation between lease and purchase components

8. Conversion Mechanism: Process and conditions for converting from lease to purchase, including timing and requirements

9. Rights and Obligations: Respective rights and obligations of both parties during both lease and purchase phases

10. Property Maintenance and Use: Responsibilities for maintenance, permitted uses, and restrictions on property use

11. Insurance and Taxes: Requirements for property insurance and responsibility for real property taxes

12. Default and Remedies: Events of default, cure periods, and remedies including compliance with Maceda Law

13. Registration and Transfer: Process for eventual property registration and transfer of title

14. Governing Law and Jurisdiction: Specification of Philippine law application and jurisdiction for disputes

15. Termination: Conditions and process for termination of the agreement

16. Miscellaneous Provisions: Standard contract provisions including severability, entire agreement, and amendments