Late Rent Payment Agreement Template for Philippines

The Late Rent Payment Agreement serves as a crucial legal instrument in the Philippine real estate context, used when tenants fall behind on their rental payments but both parties wish to maintain their landlord-tenant relationship. This document becomes necessary when a tenant acknowledges their rental debt and agrees to a structured payment plan to clear their arrears. It must comply with Philippine legislation, including the Civil Code, Rent Control Act, and where applicable, the Maceda Law and local ordinances. The agreement typically includes details of the outstanding amount, payment schedule, consequences of default, and any special arrangements like interest rates or grace periods. It's particularly relevant in situations where complete immediate payment isn't possible, offering a formal framework for resolving rental arrears while protecting both parties' interests under Philippine law.

1. Parties: Identifies the landlord/lessor and tenant/lessee with their complete legal names, addresses, and contact information

2. Background: References the original lease agreement, states the current rental arrears situation, and establishes the purpose of this agreement

3. Definitions: Defines key terms used in the agreement, including 'Original Lease', 'Outstanding Amount', 'Payment Plan', and 'Default'

4. Acknowledgment of Debt: States the total outstanding amount owed, including any late fees or interest, with a breakdown of the amounts

5. Payment Plan Terms: Details the agreed payment schedule, including installment amounts, due dates, and payment methods

6. Interest and Penalties: Specifies any interest rates or late payment penalties applicable to the payment plan

7. Default Provisions: Outlines what constitutes a default under this agreement and the consequences of default

8. Effect on Original Lease: Confirms that all other terms of the original lease remain in effect

9. Governing Law: Specifies that the agreement is governed by Philippine law and references relevant legislation

10. Execution: Signature block with spaces for both parties and witnesses