Property Deposit Agreement Template for Philippines

The Property Deposit Agreement is a crucial document used in Philippine real estate transactions when a prospective buyer wishes to secure their interest in a property by paying a deposit to the owner or seller. This agreement serves as an interim arrangement before the final sale, typically used when immediate completion of the purchase is not possible or when parties need time for due diligence, financing arrangements, or other prerequisites. The document must comply with Philippine property laws, including the Civil Code and the Maceda Law, which provides specific protections for property buyers. It includes essential details such as property description, deposit amount, holding period, conditions for refund or forfeiture, and the framework for proceeding to full purchase. This agreement is particularly important in the Philippine context where property transactions often involve extended periods between initial interest and final purchase.

1. Parties: Identifies and provides full details of the property seller/owner and the prospective buyer/depositor

2. Background: Explains the context of the agreement, including the seller's ownership of the property and the buyer's interest in purchasing

3. Definitions: Defines key terms used throughout the agreement including 'Property', 'Deposit', 'Completion Date', etc.

4. Property Details: Specific description of the property including address, boundaries, and title details

5. Deposit Amount and Payment: Specifies the deposit amount, payment method, and timing of payment

6. Purpose of Deposit: Clarifies that the deposit is to secure the property and forms part of the purchase price

7. Duration and Exclusivity: Specifies the period during which the seller cannot sell the property to another party

8. Conditions for Purchase: Outlines the conditions that must be met for the sale to proceed

9. Refund Provisions: Details circumstances under which the deposit will be refunded, in compliance with Maceda Law

10. Completion of Sale: Describes the process and requirements for completing the full property purchase

11. Default and Remedies: Specifies what constitutes default by either party and the corresponding remedies

12. Governing Law: Confirms that the agreement is governed by Philippine law

13. Signatures: Space for parties to execute the agreement with witnesses