Sale Agreement For Home Loan Template for Philippines

The Sale Agreement For Home Loan is a crucial document used in Philippine residential property transactions where financing is required through a lending institution. This agreement serves as the primary contract between the lender and borrower, outlining the complete terms of the home loan while ensuring compliance with Philippine banking regulations and property laws. It is typically used when individuals or families seek to purchase residential property through bank financing, requiring detailed documentation of the loan terms, property details, and security arrangements. The agreement must comply with specific Philippine legislation including the Truth in Lending Act, relevant Bangko Sentral ng Pilipinas regulations, and the Civil Code of the Philippines, making it essential for both the protection of the lender's security interest and the borrower's rights under Philippine law.

1. Parties: Identifies and provides full details of the lender, borrower, and any guarantors

2. Background: Outlines the context of the loan agreement and the purpose of the home purchase

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the principal amount of the loan and confirms its purpose for home purchase

5. Interest Rate and Charges: Details the interest rate, method of computation, and all applicable fees and charges

6. Term and Repayment: Specifies the loan duration and repayment schedule, including payment amounts and due dates

7. Security and Collateral: Details the property being mortgaged and any additional security arrangements

8. Conditions Precedent: Lists conditions that must be met before the loan becomes effective

9. Representations and Warranties: States the legal promises and factual assertions made by the borrower

10. Covenants: Lists ongoing obligations of the borrower during the loan term

11. Events of Default: Defines circumstances that constitute default and their consequences

12. Remedies: Outlines the lender's rights and remedies in case of default

13. Insurance Requirements: Specifies required insurance coverage for the property and loan

14. Assignment and Transfer: Addresses the parties' rights to assign or transfer their rights and obligations

15. Notices: Specifies how formal communications between parties should be made

16. Governing Law and Jurisdiction: Confirms Philippine law as governing law and specifies jurisdiction for disputes

17. Miscellaneous Provisions: Includes standard boilerplate clauses and other general provisions