When it comes to buying or selling a property in the Philippines, having a solid contract is crucial. A contract serves as a legal agreement between the buyer and seller, outlining the terms and conditions of the sale. If you are selling your house and lot in the Philippines, here is a sample contract you can use as a guide.
Introduction
The contract should start with an introduction that identifies the parties involved in the sale. This includes the seller, buyer, and the property in question.
For example:
This agreement made on [date] is between [seller`s name], hereafter referred to as the “seller,” and [buyer`s name], hereafter referred to as the “buyer,” for the sale of the property located at [property`s address], hereafter referred to as the “property.”
Purchase Price and Payment Terms
The contract should specify the purchase price of the property and how the buyer intends to pay for it. This can include a down payment, installment payments, or a lump sum payment.
For example:
The purchase price of the property is [amount in pesos], which the buyer shall pay in full [or specify payment terms, such as a down payment of X% followed by X number of equal monthly instalments] to the seller.
Title and Transfer of Ownership
The contract should also address the title of the property and the transfer of ownership from the seller to the buyer. This includes the transfer of real estate taxes and other fees associated with the sale.
For example:
The seller shall transfer the title of the property to the buyer upon full payment of the purchase price. The buyer shall be responsible for the transfer of real estate taxes and other fees associated with the sale.
Closing Date and Possession
The contract should specify the closing date of the sale and when possession of the property will be transferred to the buyer.
For example:
The closing date of the sale shall be on [date]. The seller shall deliver possession of the property to the buyer on [date of possession].
Seller`s Representations and Warranties
The contract should include any representations and warranties that the seller provides regarding the property, such as the condition of the property, any defects or encumbrances, and any ongoing legal disputes.
For example:
The seller represents and warrants that the property is in good condition and free from any defects or encumbrances. The seller also certifies that there are no ongoing legal disputes involving the property.
Conclusion
A contract to sell a house and lot in the Philippines should cover the key terms and conditions of the sale to protect both the buyer and seller. Using a sample contract as a guide can help ensure that all important details are included and agreed upon by both parties.