Pre Sale Agreement Template for Philippines

The Pre Sale Agreement is a crucial document in Philippine real estate transactions, used when selling properties that are still under construction or in the pre-development phase. This agreement type is specifically regulated under Presidential Decree No. 957 and must comply with various Philippine laws including the Maceda Law (RA 6552) for buyer protection. The document is essential for developers who wish to sell properties before completion, requiring detailed disclosure of project specifications, payment terms, and construction timelines. It serves as a primary contract that protects both the developer's and buyer's interests, ensuring clear documentation of obligations, warranties, and remedies. The agreement must be properly executed and notarized to be legally binding under Philippine law, and developers must have obtained necessary licenses and permits before entering into such agreements.

1. Parties: Identification of the Seller/Developer and the Buyer with complete details as required by Philippine law

2. Background: Context of the transaction, including the development project details and developer's licenses/permits

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the property being sold, including exact specifications and location

5. Purchase Price: Total purchase price, payment schedule, and terms of payment including reservation fees

6. Payment Terms: Detailed breakdown of payment structure, installment plans, and due dates

7. Construction and Delivery: Timeline for construction, completion, and delivery of the property

8. Warranties and Representations: Seller's warranties regarding title, construction quality, and compliance with laws

9. Rights and Obligations: Detailed responsibilities of both parties during the pre-sale period

10. Default and Remedies: Consequences of default by either party and available remedies, including Maceda Law provisions

11. Transfer of Title: Process and conditions for the transfer of property title

12. Taxes and Fees: Allocation of taxes, registration fees, and other charges

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

14. Execution: Signature blocks and notarization requirements