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The Deed of Assignment with Assumption of Mortgage is a crucial legal instrument in Philippine property transactions where an existing mortgaged property is being sold or transferred. This document is specifically used when the buyer (Assignee) agrees to take over the seller's (Assignor's) existing mortgage obligations rather than securing new financing. The deed must comply with Philippine Civil Code requirements, Property Registration Decree (PD 1529), and banking regulations. It typically includes detailed provisions about the property, outstanding mortgage balance, payment terms, and the rights and obligations of all parties. The document requires notarization and registration with the Registry of Deeds to be legally effective. This type of deed is particularly common in both residential and commercial property transactions where assuming an existing mortgage is more advantageous than creating a new one.

1. Parties: Identifies all parties involved: the Assignor (current property owner), the Assignee (new property owner), and the Mortgagee (lending institution)

2. Background: Recitals explaining the existing mortgage arrangement, property details, and the intention to transfer both property and mortgage obligations

3. Definitions: Defines key terms used throughout the deed including Property, Mortgage, Outstanding Balance, and Assignment Date

4. Assignment: Details the transfer of property rights from Assignor to Assignee, including the specific rights and interests being transferred

5. Assumption of Mortgage: Specifies the Assignee's assumption of all mortgage obligations and terms of payment

6. Consideration: States the purchase price and payment terms between Assignor and Assignee

7. Mortgagee's Consent: Documents the Mortgagee's formal consent to the assignment and assumption of mortgage

8. Representations and Warranties: Statements by all parties regarding their capacity, authority, and the status of the property and mortgage

9. Covenants: Ongoing obligations of the parties, particularly the Assignee's commitments regarding mortgage payments

10. Completion Requirements: Steps required to complete the transfer, including registration and documentation requirements

11. Governing Law and Jurisdiction: Specifies Philippine law as governing law and designates jurisdiction for disputes

12. Execution: Formal signing section with notarization requirements