Contracts

CONTRACT TO SELL

This Contract to Sell ("Agreement") is made and entered into this [Day] of [Month, Year], at [Place of Execution], by and between:

[SELLER'S FULL NAME], of legal age, [civil status], [nationality], and residing at [Seller’s Address], hereinafter referred to as the “Seller”;

AND

[BUYER'S FULL NAME], of legal age, [civil status], [nationality], and residing at [Buyer’s Address], hereinafter referred to as the “Buyer”;

The Seller and Buyer are collectively referred to as the "Parties."

WHEREAS, the Seller is the absolute and registered owner of a [Type of Property, e.g., parcel of land, condominium unit, house and lot, motor vehicle, etc.], described as follows:

• Property Title No.: [Title Number, if applicable]

• Location: [Complete Address of the Property]

• Lot Area (if applicable): [Size in square meters]

• Description: [Additional details, such as boundaries, improvements, or specific identification]

WHEREAS, the Seller agrees to sell and the Buyer agrees to purchase the above-described property under the terms and conditions set forth in this Agreement;

NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, the Parties hereby agree as follows:

1. PURCHASE PRICE AND PAYMENT TERMS

1.1. The total purchase price of the property is PHP [Amount in Words] ([PHP Amount in Numbers]).
1.2. The Buyer shall pay the Seller the purchase price under the following schedule:

• Reservation Fee: PHP [Amount] upon signing of this Contract to Sell (non-refundable).

• Down Payment: PHP [Amount] due on or before [Date].

• Balance: PHP [Amount] to be paid through [state mode of payment, e.g., bank financing, in-house financing, lump sum, installment plan], payable in [Number] months/years.
  1.3. The Seller shall issue an Official Receipt for every payment received from the Buyer.

2. DELIVERY AND TRANSFER OF TITLE

2.1. The Seller agrees to transfer full ownership of the property to the Buyer only upon full payment of the purchase price.
2.2. Upon complete payment, the Seller shall execute a Deed of Absolute Sale in favor of the Buyer and facilitate the transfer of title.
2.3. All necessary documents for title transfer shall be submitted to the appropriate government agencies, with the assistance of both Parties.

3. POSSESSION

3.1. The Buyer shall be allowed to take possession of the property upon [state when possession is granted, e.g., full payment, partial payment, signing of contract].
3.2. The Buyer shall not alter, renovate, or make improvements on the property without prior written consent from the Seller before full ownership is transferred.

4. TAXES AND OTHER EXPENSES

4.1. The following expenses shall be borne by the Seller:

• Capital Gains Tax (CGT)

• Documentary Stamp Tax (DST)
  4.2. The following expenses shall be borne by the Buyer:

• Transfer Tax and Registration Fees

• Notarial and legal fees

• All fees related to mortgage or financing (if applicable)

5. DEFAULT AND FORFEITURE

5.1. If the Buyer fails to pay any installment or balance due under this Agreement beyond [Number] days from the due date, the Seller shall have the right to:

• Cancel this Contract to Sell and forfeit all payments made as liquidated damages.

• Repossess the property without need for court action.

• Sell the property to another buyer without further obligation to the original Buyer.

5.2. If the Seller fails to transfer the property after full payment, the Buyer may:

• Demand the execution of the Deed of Absolute Sale and transfer of title.

• Seek legal remedies, including rescission of this contract and refund of payments made, with damages.

6. WARRANTIES AND REPRESENTATIONS

6.1. The Seller guarantees that:

• The property is free from any liens, encumbrances, or adverse claims.

• The Seller has legal ownership and full authority to sell the property.

• There are no pending tax obligations or unpaid dues on the property.

6.2. The Buyer acknowledges that:

• The property is sold on an "as-is, where-is" basis, unless otherwise agreed upon.

• The Buyer has conducted due diligence regarding the property's condition.

7. GENERAL PROVISIONS

7.1. Governing Law – This Agreement shall be governed by the laws of the Republic of the Philippines.
7.2. Severability – If any provision is found invalid, the rest of the Agreement shall remain in effect.
7.3. Amendments – Any modification to this Agreement must be in writing and signed by both Parties.
7.4. Entire Agreement – This Agreement constitutes the full understanding between the Parties regarding the sale of the property.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this [day] of [month, year], at [place of execution].

SIGNED BY:

[SELLER'S NAME]

Seller

[BUYER'S NAME]

Buyer

With Marital Consent:

[NAME OF SELLER'S SPOUSE]

(If applicable, i.e. property is subject to the regime of community property or conjugal partnership of gains.)

SIGNED IN THE PRESENCE OF:

[Witness 1 Name]

Witness

[Witness 2 Name]

Witness

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES
[Province/City/Municipality]) S.S.

BEFORE ME, a Notary Public for and in [Location], this ___ day of [month], [year], personally appeared the following persons:

1. [SELLER'S NAME ], identified through [Government ID Type & Number], issued on [Date], 

2. [NAME OF SELLER'S SPOUSE], identified through [Government ID Type & Number], issued on [Date], and

3. [BUYER'S NAME], identified through [Government ID Type & Number], issued on [Date],

both known to me to be the same persons who executed the foregoing Contract to Sell, and acknowledged that the same is their free and voluntary act and deed, as well as that of the entity they represent.

WITNESS MY HAND AND SEAL this ___ day of [month], [year], at [place of notarization], Philippines.

NOTARY PUBLIC

Doc. No. ____________
Page No. ____________
Book No. ____________
Series of [YEAR].