Real Estate Agreement To Sell Template for Philippines

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Real Estate Agreement To Sell

"I need a Real Estate Agreement to Sell for a residential condominium unit in Makati City, Philippines, with a total purchase price of 15 million pesos to be paid in installments over 24 months starting March 2025, with standard developer terms and conditions."

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What is a Real Estate Agreement To Sell?

The Real Estate Agreement to Sell is a fundamental document in Philippine property transactions, serving as a preliminary contract that precedes the final Deed of Absolute Sale. This document is particularly important in situations where the full purchase price is not paid immediately or when certain conditions must be met before the final transfer of property ownership. It provides a legally binding framework that protects both the seller's and buyer's interests while ensuring compliance with Philippine real estate laws and regulations. The agreement typically includes detailed property descriptions, payment terms, conditions precedent, warranties, and remedies for breach. It is especially relevant in installment sales, pre-selling arrangements, and complex property transactions where the immediate execution of a Deed of Absolute Sale is not feasible.

What sections should be included in a Real Estate Agreement To Sell?

1. Parties: Identifies and provides complete details of the Seller and Buyer, including their legal capacities to enter into the agreement

2. Background: Establishes the context of the agreement, including brief property description and parties' intention to enter into a sale transaction

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Property Description: Detailed description of the real estate property including location, boundaries, and title details

5. Purchase Price: Specifies the total purchase price, payment terms, and schedule of payments

6. Payment Terms: Details the structure of payments including down payment, installments, and final payment requirements

7. Conditions Precedent: Lists conditions that must be fulfilled before the sale can be completed

8. Seller's Representations and Warranties: Statements affirming the Seller's authority to sell and the property's legal status

9. Buyer's Representations and Warranties: Statements regarding the Buyer's capacity and commitment to purchase

10. Title Transfer: Process and timing for transferring property title from Seller to Buyer

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

12. Default and Remedies: Consequences of default by either party and available remedies

13. Termination: Circumstances under which the agreement may be terminated and its consequences

14. Governing Law: Specifies Philippine law as governing law and relevant jurisdiction

15. Execution: Formal closing section with signature blocks and notarization requirements

What sections are optional to include in a Real Estate Agreement To Sell?

1. Broker Involvement: Details of real estate broker involvement and commission arrangements, used when a licensed broker is involved

2. Mortgage Provisions: Terms relating to mortgage financing, used when buyer requires bank financing

3. Property Inspection: Terms for conducting property inspections and addressing findings, used for properties requiring detailed inspection

4. Occupancy Provisions: Terms regarding current occupants and vacancy requirements, used when property is occupied

5. Construction Completion: Terms regarding completion of ongoing construction, used for pre-selling arrangements

6. Homeowners Association: Terms relating to homeowners association membership and fees, used for properties within subdivisions or condominiums

7. Force Majeure: Provisions for unforeseen circumstances affecting the transaction, used in areas prone to natural disasters

8. Assignment Rights: Terms regarding the right to assign the agreement to another party, used when assignment might be contemplated

What schedules should be included in a Real Estate Agreement To Sell?

1. Schedule A - Property Details: Comprehensive technical description of the property, including lot area, boundaries, and technical specifications

2. Schedule B - Payment Schedule: Detailed breakdown of payment terms including amounts and due dates

3. Schedule C - Property Documents: List of all property-related documents including title, tax declarations, and permits

4. Schedule D - Property Inspection Report: Detailed report of property condition and any identified issues

5. Schedule E - Permits and Licenses: Copies of relevant permits, licenses, and certificates affecting the property

6. Appendix 1 - Property Photos: Recent photographs of the property and its relevant features

7. Appendix 2 - Location Map: Maps showing the property location and access routes

8. Appendix 3 - Form of Deed of Absolute Sale: Template of the final deed of sale to be executed upon completion of payments

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Residential Property

Commercial Property

Industrial Property

Property Investment

Construction

Banking and Finance

Legal Services

Property Management

Urban Development

Relevant Teams

Legal

Real Estate

Sales

Compliance

Business Development

Property Management

Documentation

Risk Management

Finance

Corporate Secretarial

Relevant Roles

Real Estate Broker

Property Manager

Legal Counsel

Corporate Lawyer

Real Estate Developer

Sales Director

Property Consultant

Compliance Officer

Real Estate Agent

Business Development Manager

Contract Administrator

Title Officer

Real Estate Investment Manager

Documentation Specialist

Property Valuation Officer

Industries
Civil Code of the Philippines (Republic Act No. 386): Primary law governing contracts, property rights, and obligations in the Philippines. Specifically, Book IV on Obligations and Contracts, and Book V on Property Rights are crucial for real estate transactions.
Presidential Decree No. 957: The Subdivision and Condominium Buyers' Protective Decree - regulates real estate development and sales, protecting buyers of subdivision lots and condominium units.
Republic Act No. 6552 (Maceda Law): Provides protection to buyers of real estate on installment payments, including rights of cancellation and refund provisions.
Republic Act No. 9646 (Real Estate Service Act of 2009): Professionalizes real estate service practice in the Philippines, setting standards for real estate transactions and broker requirements.
TRAIN Law (Republic Act No. 10963): Tax Reform for Acceleration and Inclusion Law - provides updated regulations on real estate taxation, including capital gains tax and documentary stamp tax.
Local Government Code (Republic Act No. 7160): Governs local real estate taxation and transfer requirements, including requirements for local permits and clearances.
Property Registration Decree (Presidential Decree No. 1529): Establishes the system of registration and transfer of real property, including the Torrens system of land registration.
Republic Act No. 9285 (Alternative Dispute Resolution Act): Provides framework for resolving real estate disputes through alternative means such as mediation and arbitration.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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