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The Deed of Absolute Sale with Assumption of Mortgage is a specialized legal instrument used in Philippine real estate transactions where a property is sold while still subject to an existing mortgage. This document is particularly relevant when buyers prefer to take over existing mortgage arrangements rather than securing new financing. The deed must comply with various Philippine laws including the Civil Code, Property Registration Decree, and banking regulations. It details the property specifications, purchase price, outstanding mortgage balance, payment terms, and conditions for mortgage assumption. The document requires careful drafting to protect all parties' interests and typically needs approval from the mortgagee bank before execution. This type of deed is common in both residential and commercial property transactions in the Philippines, especially in cases where assuming the existing mortgage offers more favorable terms than new financing.

1. Parties: Identifies and provides complete details of the Seller and Buyer, including their civil status, citizenship, and addresses as required under Philippine law

2. Background: Establishes the Seller's ownership of the property, existing mortgage details, and intention to sell with mortgage assumption

3. Definitions: Defines key terms used throughout the deed including Property, Mortgage, Purchase Price, Outstanding Mortgage Balance

4. Property Description: Detailed technical description of the property including lot number, survey details, title number, and boundaries as registered

5. Consideration: States the total purchase price, payment terms, and breakdown between direct payment to seller and mortgage assumption amount

6. Mortgage Assumption Terms: Details of the mortgage being assumed, including outstanding balance, interest rate, payment terms, and assumption conditions

7. Representations and Warranties: Seller's warranties regarding property ownership, mortgage status, and absence of other encumbrances

8. Rights and Obligations: Outlines the rights and obligations of both parties regarding the property transfer and mortgage assumption

9. Tax Obligations: Specifies responsibilities for transfer taxes, capital gains tax, and documentary stamp tax

10. Transfer of Possession: States when and how possession of the property will be transferred to the buyer

11. Execution Requirements: Details about document notarization and registration requirements