Real Estate Contract for Philippines

Real Estate Contract Template for Philippines

A comprehensive legal document governed by Philippine law that facilitates the transfer of real property ownership between parties. This contract adheres to the requirements set forth in the Civil Code of the Philippines and related property laws, incorporating essential elements such as property description, purchase price, payment terms, and conditions of sale. The document includes specific provisions required by Philippine jurisdiction, including proper party identification, technical property descriptions as per land registration requirements, and mandatory notarization. It addresses both the rights and obligations of parties while ensuring compliance with local property laws, tax regulations, and foreign ownership restrictions where applicable.

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What is a Real Estate Contract?

The Real Estate Contract serves as the primary instrument for documenting property transactions in the Philippines, operating within the framework of the Civil Code of the Philippines and the Property Registration Decree. This document is essential for any transfer of real property ownership, whether residential, commercial, or industrial. It must incorporate specific requirements of Philippine property law, including proper identification of parties, detailed property descriptions, and compliance with foreign ownership restrictions if applicable. The contract typically includes provisions for payment terms, warranties, tax obligations, and title transfer procedures. It requires notarization and registration with appropriate government agencies to be legally effective. This standardized Real Estate Contract format ensures that all necessary legal requirements are met while protecting the interests of both buyers and sellers in the Philippine real estate market.

What sections should be included in a Real Estate Contract?

1. Parties: Identification and details of the seller and buyer, including complete legal names, civil status, citizenship, and addresses as required by Philippine law

2. Background: Context of the transaction and brief description of the parties' intention to enter into a real estate transaction

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

4. Property Description: Detailed description of the property including lot number, survey number, certificate of title number, exact location, boundaries, and total area

5. Purchase Price: Total consideration and detailed payment terms including method and schedule of payments

6. Terms of Payment: Specific breakdown of payment schedule, deposits, and balance payment arrangements

7. Representations and Warranties: Seller's warranties regarding property ownership, absence of liens, and buyer's warranties regarding financial capacity

8. Rights and Obligations: Detailed responsibilities of both parties before, during, and after the transaction

9. Taxes and Expenses: Allocation of transfer taxes, registration fees, and other transaction-related expenses

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

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

12. Governing Law: Specification of Philippine law as governing law and relevant jurisdictional provisions

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

What sections are optional to include in a Real Estate Contract?

1. Mortgage Provisions: Include when the purchase involves bank financing or mortgage arrangements

2. Construction Obligations: Required for pre-selling arrangements or when property includes unfinished construction

3. Property Management: Necessary for condominium units or properties within managed developments

4. Foreign Ownership Compliance: Required when the buyer is a foreign national, addressing ownership restrictions

5. Tenant Provisions: Include when the property is currently leased or has existing occupants

6. Environmental Compliance: Required for properties requiring environmental clearances or certificates

7. Subdivision Restrictions: Include when property is part of a subdivision with specific restrictions or requirements

8. Force Majeure: Optional clause addressing unforeseen circumstances affecting contract performance

9. Broker Provisions: Include when real estate brokers are involved in the transaction

What schedules should be included in a Real Estate Contract?

1. Property Documents: Copies of title, tax declarations, and property surveys

2. Payment Schedule: Detailed breakdown of payment terms, amounts, and due dates

3. Property Photographs: Recent photographs documenting the current state of the property

4. Technical Description: Detailed technical description of the property boundaries and specifications

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

6. Permits and Licenses: Relevant building permits, occupancy permits, and other governmental authorizations

7. Property Inspection Report: Detailed report on the physical condition of the property

8. Deed of Restrictions: Copy of applicable subdivision or condominium restrictions

9. Power of Attorney: If applicable, authorization documents for representatives 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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Banking and Finance

Legal Services

Property Development

Insurance

Hospitality

Retail

Commercial Property

Residential Property

Industrial Property

Agriculture (for agricultural land)

Tourism

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Asset Management

Business Development

Finance

Risk Management

Operations

Corporate Services

Acquisitions

Investment

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Broker

Legal Counsel

Compliance Officer

Real Estate Developer

Property Acquisition Manager

Real Estate Investment Manager

Title Officer

Corporate Counsel

Real Estate Administrator

Property Valuation Specialist

Land Registration Officer

Real Estate Transaction Coordinator

Business Development Manager

Asset Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Primary law governing contracts and property rights, including provisions on sales, obligations, and contracts relating to real property
Property Registration Decree (Presidential Decree No. 1529): Provides the legal framework for land registration and transfer of real property ownership in the Philippines
Real Estate Service Act of 2009 (Republic Act No. 9646): Regulates real estate service practice and sets professional standards for real estate transactions
Local Government Code (Republic Act No. 7160): Contains provisions on local taxation, zoning regulations, and permits required for real estate development
National Internal Revenue Code: Covers tax obligations related to real estate transactions, including capital gains tax, documentary stamp tax, and transfer tax
Urban Development and Housing Act (Republic Act No. 7279): Provides guidelines for urban land use and development, particularly relevant for residential real estate
Condominium Act (Republic Act No. 4726): Specific legislation governing condominium ownership and transactions
Anti-Money Laundering Act (Republic Act No. 9160): Includes provisions affecting high-value real estate transactions to prevent money laundering
Foreign Investments Act (Republic Act No. 7042): Contains restrictions and requirements for foreign ownership of real estate in the Philippines
Environmental Laws (Various): Including Environmental Impact Assessment requirements for certain real estate developments and Environmental Compliance Certificates
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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