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Residential Purchase And Sale Agreement Template for Philippines

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Residential Purchase And Sale Agreement

"I need a Residential Purchase and Sale Agreement for a luxury condominium unit in Makati City, Philippines, with a foreign buyer and including provisions for furniture and fixtures, with closing scheduled for March 2025."

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What is a Residential Purchase And Sale Agreement?

The Residential Purchase and Sale Agreement is a crucial legal document used in Philippine real estate transactions to formalize the transfer of residential property ownership. It serves as the primary contract between buyers and sellers, incorporating all essential elements required by Philippine law, including the Civil Code, Property Registration Decree, and local real estate regulations. This agreement is necessary whenever residential property is bought or sold in the Philippines, whether it's a house, condominium unit, or other residential real estate. The document includes detailed provisions covering property description, purchase price, payment terms, warranties, closing requirements, and transfer procedures. It also addresses specific Philippine requirements such as tax obligations, title transfer processes, and local government compliance. The agreement must be notarized to be enforceable and serves as the basis for the subsequent property registration process.

What sections should be included in a Residential Purchase And Sale Agreement?

1. Parties: Identification of the Seller and Buyer with complete legal names and addresses

2. Background: Context of the transaction and brief property overview

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property including lot number, street address, boundaries, and title details

5. Purchase Price: Total purchase price and payment structure

6. Payment Terms: Detailed breakdown of payment schedule, deposit requirements, and final payment arrangements

7. Conditions Precedent: Conditions that must be met before the sale becomes final

8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, absence of liens, and other material facts

9. Buyer's Representations and Warranties: Buyer's declarations regarding financial capacity and other relevant matters

10. Title and Transfer: Process and requirements for transferring property title

11. Taxes and Fees: Allocation of transfer taxes, registration fees, and other transaction costs

12. Due Diligence: Buyer's right to inspect and verify property condition and documentation

13. Closing Requirements: Documents and actions required to complete the transaction

14. Risk and Insurance: Responsibility for property insurance and risk of loss before closing

15. Default and Remedies: Consequences and remedies for breach of agreement

16. Notices: How formal communications between parties should be made

17. Governing Law: Confirmation of Philippine law application and jurisdiction

18. Execution: Signature blocks and notarization requirements

What sections are optional to include in a Residential Purchase And Sale Agreement?

1. Financing Contingency: Used when buyer's purchase is contingent on obtaining mortgage financing

2. Property Inspection Contingency: Detailed terms for property inspection rights and remedies

3. Existing Tenancies: Required when property has current tenants and handling of lease agreements

4. Homeowners Association: Needed for properties within subdivisions or covered by homeowners associations

5. Foreign Ownership Compliance: Required when buyer is a foreign national, addressing ownership restrictions

6. Broker Provisions: Include when real estate brokers are involved in the transaction

7. Construction Completion: For properties under construction or requiring specific improvements

8. Environmental Matters: When property has specific environmental concerns or requirements

9. Furniture and Fixtures: When sale includes specific furniture or fixtures

10. Early Possession Agreement: Terms for buyer occupancy prior to closing if applicable

What schedules should be included in a Residential Purchase And Sale Agreement?

1. Schedule A - Property Details: Detailed technical description of property, including lot plan and boundaries

2. Schedule B - Payment Schedule: Detailed breakdown of payment terms and due dates

3. Schedule C - Included Items: List of fixtures, appliances, and other items included in the sale

4. Schedule D - Excluded Items: List of items specifically excluded from the sale

5. Schedule E - Title Documents: Copy of title and other relevant property documents

6. Schedule F - Property Inspection Report: Results of property inspection if completed

7. Schedule G - Permits and Certificates: Copies of relevant permits, certificates, and clearances

8. Appendix 1 - Property Photos: Recent photographs of the property

9. Appendix 2 - Tax Declarations: Current real property tax declarations and receipts

10. Appendix 3 - Required Governmental Forms: Standard government forms required for property transfer

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

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