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Real Estate Contract Cancellation Letter

Real Estate Contract Cancellation Letter Template for Philippines

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Key Requirements PROMPT example:

Real Estate Contract Cancellation Letter

"I need a Real Estate Contract Cancellation Letter for a residential property in Manila where the buyer has defaulted on installment payments for the past 4 months, with the last payment received in January 2025; the letter should include Maceda Law provisions for refund calculations."

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Document background
The Real Estate Contract Cancellation Letter is a crucial document in Philippine real estate transactions when one party needs to formally terminate an existing property contract. This document is used when circumstances necessitate contract termination, such as payment defaults, breach of contract terms, or mutual agreement to cancel. It must be drafted in compliance with Philippine laws, particularly the Civil Code of the Philippines and the Maceda Law (RA 6552), which provides specific protections for buyers in installment purchases. The letter should include essential elements such as contract details, grounds for cancellation, payment history, and next steps. It's particularly important in the Philippine context where real estate transactions are heavily regulated and specific legal requirements must be met for valid contract termination.
Suggested Sections

1. Letter Header and Date: Complete contact information of the sender and recipient, including names, addresses, and the current date

2. Subject Line: Clear reference to 'Contract Cancellation Notice - [Property Details]'

3. Contract Reference: Details of the original contract including date, parties involved, and property description

4. Statement of Cancellation: Clear and unambiguous statement of intent to cancel the contract

5. Legal Basis: Citation of relevant laws (e.g., Maceda Law, Civil Code) and specific contract provisions supporting the cancellation

6. Payment History Summary: Brief summary of payments made and current status

7. Request for Action: Specific actions required from the recipient, including deadlines

8. Closing and Signature: Formal closing, signature block, and contact information for future correspondence

Optional Sections

1. Default Notice: Required when cancellation is due to payment defaults, specifying the nature and duration of default

2. Refund Request: Include when seeking refund of payments under Maceda Law provisions

3. Force Majeure Citation: Required when cancellation is due to circumstances beyond parties' control

4. Without Prejudice Statement: Optional legal protection statement preserving rights for future actions

5. Mediation Proposal: Suggested when parties wish to attempt resolution through mediation before final cancellation

Suggested Schedules

1. Payment History Statement: Detailed record of all payments made under the contract

2. Original Contract Copy: Copy of the original real estate contract being cancelled

3. Property Documentation: Relevant property documents including title details and tax declarations

4. Notice of Default: Copies of any previous notices or demand letters sent

5. Proof of Sending: Courier receipts or other proof of delivery of the cancellation notice

Authors

Alex Denne

Head of Growth (Open Source Law) @ 抖阴短视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions


























Clauses


















Relevant Industries

Real Estate

Construction

Property Development

Banking and Finance

Legal Services

Property Management

Urban Development

Residential Property

Commercial Property

Industrial Property

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Sales

Documentation

Risk Management

Contract Administration

Customer Relations

Operations

Relevant Roles

Real Estate Agent

Property Manager

Legal Counsel

Real Estate Broker

Contract Administrator

Property Developer

Compliance Officer

Real Estate Attorney

Transaction Coordinator

Sales Manager

Property Administrator

Legal Assistant

Real Estate Consultant

Documentation Specialist

Risk Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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