Partial Payment Agreement For Lot Template for Philippines

The Partial Payment Agreement For Lot is a crucial document in Philippine real estate transactions where buyers opt to purchase property through installment payments rather than full payment. This agreement type is specifically designed to comply with Philippine real estate laws, particularly the Maceda Law (RA 6552) which protects buyers in installment payment schemes. It's commonly used in both residential and commercial lot purchases, subdivision developments, and raw land transactions. The document typically includes comprehensive details about the property, payment terms, interest rates if applicable, default provisions, and the process for eventual transfer of title. It's essential for property developers, real estate companies, and individual sellers who offer installment payment schemes for lot purchases in the Philippines.

1. Parties: Identifies and provides complete details of the Seller and Buyer, including their legal names, addresses, and tax identification numbers

2. Background: Establishes the context of the agreement, including the Seller's ownership of the property and the Buyer's intention to purchase through partial payments

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

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

5. Purchase Price: States the total purchase price and how it was determined

6. Payment Terms: Details of the partial payment structure, including down payment, installment amounts, payment schedule, and interest rates if applicable

7. Rights and Obligations of the Seller: Outlines the Seller's commitments, including maintaining clear title and facilitating transfer

8. Rights and Obligations of the Buyer: Specifies the Buyer's responsibilities, including timely payments and compliance with terms

9. Default and Remedies: Describes what constitutes default and the remedies available to each party, incorporating Maceda Law provisions

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

11. Taxes and Expenses: Allocation of taxes, registration fees, and other transaction costs

12. Governing Law: Specifies Philippine law as governing law and relevant jurisdictional details

13. Execution: Signature blocks and notarization requirements