Document background
The Preliminary Agreement For Sale And Purchase is a crucial document in Philippine real estate transactions, used when parties have reached initial agreement on key terms but require a formal framework for proceeding with the transaction. This document is typically employed after price negotiation but before comprehensive due diligence, serving as a bridge between initial handshake agreement and final sale. It includes essential terms such as property description, price, payment schedule, and conditions precedent, while allowing flexibility for detailed terms to be finalized in the subsequent Deed of Absolute Sale. The agreement must comply with Philippine property laws, including the Civil Code, Maceda Law, and relevant real estate regulations. It's particularly valuable in complex transactions where parties need to secure their initial understanding while arranging financing, conducting due diligence, or obtaining necessary approvals.
