Property Buy Sell Agreement Template for Philippines

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Property Buy Sell Agreement

"I need a Property Buy Sell Agreement for a residential house and lot sale in Manila, Philippines, with a purchase price of 5 million pesos to be paid in three installments, with the final closing date set for March 15, 2025."

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What is a Property Buy Sell Agreement?

The Property Buy Sell Agreement is a crucial legal document used in Philippine real estate transactions to formalize and document the transfer of property ownership. This agreement is essential when any real property is being sold or purchased in the Philippines, whether between individuals, corporate entities, or a combination thereof. The document must comply with various Philippine laws, including the Civil Code, Property Registration Decree (PD 1529), and relevant tax regulations. It typically includes detailed property descriptions, purchase price, payment terms, warranties, and obligations of both parties. The agreement serves as the primary reference document for the transaction and is required for property registration with the Register of Deeds. Its proper execution is crucial for protecting both parties' interests and ensuring a legally valid property transfer.

What sections should be included in a Property Buy Sell Agreement?

1. Parties: Identification of the Seller and Buyer with complete legal names, civil status, citizenship, and addresses as required by Philippine law

2. Background: Context of the sale, including brief property history and purpose of the transaction

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

4. Property Description: Detailed description of the property including lot number, location, boundaries, and title details as registered with the Register of Deeds

5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments

6. Mode of Payment: Specified method of payment, including bank details if applicable

7. Conditions Precedent: Conditions that must be met before the sale becomes final, including title verification and property inspection

8. Representations and Warranties: Seller's declarations regarding property ownership, absence of liens, and other material facts

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

10. Transfer of Title: Process and timeline for transferring property title to the buyer

11. Possession: Terms and timing of transferring physical possession of the property

12. Default and Remedies: Consequences of breach and available remedies for both parties

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

14. Execution: Signature blocks and notarization requirements

What sections are optional to include in a Property Buy Sell Agreement?

1. Broker Involvement: Terms regarding real estate broker involvement and commission structure, used when a licensed broker facilitates the transaction

2. Mortgage Provisions: Terms relating to existing mortgages or new financing arrangements, included when the property has existing liens or buyer requires financing

3. Tenant Provisions: Terms regarding existing tenants and lease agreements, included when the property is currently leased

4. Construction Warranties: Specific warranties for newly constructed properties, included for new developments or recent constructions

5. Homeowners Association: Terms relating to homeowners association membership and fees, included for properties within managed communities

6. Foreign Ownership Provisions: Special provisions required when the buyer is a foreign national, addressing ownership limitations under Philippine law

7. Condominium Provisions: Special terms applicable to condominium units, including common areas and association rules

8. Environmental Provisions: Additional terms regarding environmental conditions or requirements, included for industrial or commercial properties

What schedules should be included in a Property Buy Sell Agreement?

1. Property Documents: Copy of title, tax declarations, and property survey

2. Payment Schedule: Detailed breakdown of payment terms and installment schedule if applicable

3. Property Inspection Report: Results of property inspection and list of included fixtures and fittings

4. Tax Certificates: Current real property tax certificates and clearances

5. Photos and Plans: Property photographs, floor plans, and location maps

6. Permits and Licenses: Copies of relevant building permits, occupancy permits, and other licenses

7. Due Diligence Results: Summary of title search results and other due diligence findings

8. Power of Attorney: If applicable, power of attorney documents authorizing representatives to act on behalf of either party

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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