The Simple For Sale By Owner Contract is designed for use in the Philippines when property owners wish to sell their real estate directly to buyers without the primary involvement of real estate professionals. This document type is particularly relevant in situations where the parties prefer to handle the transaction independently while ensuring compliance with Philippine property laws and regulations. The contract includes all essential elements required under Philippine law: party details, property description, purchase price, payment terms, warranties, and closing requirements. It's structured to protect both parties' interests while facilitating a straightforward property transfer process. This document type is commonly used for residential property sales but can be adapted for simple commercial property transactions, provided they comply with local regulations and the Civil Code of the Philippines.
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1. Parties: Identification and details of the Seller and Buyer, including complete names, civil status, addresses, and tax identification numbers
2. Background: Brief context of the sale, including confirmation of Seller's ownership and desire to sell, and Buyer's intention to purchase
3. Definitions: Key terms used throughout the contract, including 'Property', 'Purchase Price', 'Closing Date', etc.
4. Property Description: Detailed description of the property including exact location, boundaries, area, and title/certificate of title number
5. Purchase Price: The agreed sale price, payment terms, and method of payment
6. Payment Terms: Schedule of payments, including earnest money/deposit and balance payment details
7. Closing and Transfer of Title: Process and timeline for completing the sale and transferring property ownership
8. Representations and Warranties: Seller's guarantees 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. Default and Remedies: Consequences and available remedies if either party fails to fulfill obligations
11. Governing Law: Specification that Philippine law governs the agreement
12. Execution: Signature blocks for parties and witnesses
1. Due Diligence Period: Used when buyer requires time to conduct property inspection, title search, or other investigations
2. Broker Involvement: Include if any real estate professionals are involved in facilitating the sale
3. Existing Tenancies: Required if the property has current tenants and their rights need to be addressed
4. Property Condition: Detailed section about property condition when buyer accepts property as-is
5. Financing Contingency: Include if sale is contingent on buyer obtaining mortgage or other financing
6. Improvements and Fixtures: Detailed list of what is included/excluded in sale when there are specific items to address
7. Insurance and Risk: Add when there's a significant gap between signing and closing requiring risk allocation
1. Schedule A - Property Details: Technical description of property, including lot plan, boundaries, and technical specifications
2. Schedule B - Payment Schedule: Detailed breakdown of payment terms and installments if not paid in full
3. Schedule C - Property Inventory: List of fixtures, fittings, and other items included in the sale
4. Schedule D - Outstanding Obligations: List of any existing liens, encumbrances, or obligations affecting the property
5. Appendix 1 - Property Documents: Copies of title, tax declarations, and other relevant property documents
6. Appendix 2 - Property Photos: Current photographs of the property documenting its condition at time of sale
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