A Contract to Sell refers to an agreement between a seller and a buyer. The contract shows that the seller promises to sell something to the buyer and the buyer also promises the seller the buy the property. However, the contract does not instantly transfer the right to the buyer even when this contract is signed. There are still conditions that have to be fulfilled by one or both parties before transfer of ownership can take place. The Deed of Absolute sale will only be executed once the conditions stated in the Contract to Sell have been met.
CONTRACT TO SELL
KNOW ALL MEN BY THESE PRESENTS:
This Contract to Sell is made and executed and entered into by:
Name of Seller, of legal age, Filipino, single/married to Name of the Spouse of Seller, with residence address at Postal Address of the Seller in the Phiilppines, hereinafter referred to as the SELLER;
-AND-
Name of Buyer, of legal age, Filipino, single/married to, Name of Spouse of Buyer and with residence and postal address at Address of the Buyer in the Phiippines, hereinafter referred to as the BUYER;
WITNESSETH;
WHEREAS, the SELLER is the registered owner of a parcel of land with improvements located at Address of the property for sale in the Philippines and covered by Transfer Certificate of Title No. 000000 containing a total area of LAND AREA IN SQUARE METERS (000sqm) SQUARE METERS, more or less, issued by the Registry of Deeds of City/Municipality;
WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the above mentioned property under the terms and conditions herein below set forth;
NOW THEREFORE, for and in consideration of the total sum of THE CONTRACT PRICE FOR THE PROPERTY FOR SALE (P0,000,000.00) Philippine Currency, and of the covenants herein after set forth the SELLER agrees to sell and the BUYER agree to buy the aforesaid property subject to the following terms and conditions:
The total consideration shall be THE CONTRACT PRICE FOR THE PROPERTY FOR SALE (P0,000,000.00) Philippine Currency, payable through CASH/MANAGERS’ CHECK/WIRE TRANSFER as follows:
1.1. The amount of THE EARNEST MONEY DEPOSIT (P000,000.00) representing earnest money deposit shall be payable upon execution of this Contract to Sell and shall be considered part of the total Contract price.
1.2. The remaining balance amounting to THE REMAINING BALANCE (P0,000,000.00) PESOS Philippine Currency, shall be payable within TIME FRAME upon execution of this Contract to Sell.
1.3 In case the BUYERS could not fulfil any of their obligation stated in this Contract To Sell, the earnest money shall be forfeited in favor of the SELLER.
2. Al pending utility bills, if any, Real Estate Tax up to the time of sale, Capital Gains Tax, Documentary Stamp Tax, shall be for the account of the SELLER.
3. Notarization fees, Registration Fee, Transfer Fees and all miscellaneous fees and expenses to transfer the certificate of title in the name of the new owner shall be for the account of the SELLER;
4. Possession to the subject property shall be delivered by the SELLER to the BUYER upon full payment of the total consideration;
5. ADDITIONAL TERMS AND CONDITIONS SUCH AS Delivery of the property shall be given by the SELLER to the BUYER devoid of any religious artefacts, personal belongings and effects, tenants and any toxic/radioactive substances. Etc.
6. TERMS AND CONDITIONS MAY VARY ON A CASE-TO-CASE BASIS. CONTRACTING PARTIE MAY ADD, SUBTRACT, EDIT, ANY OR ALL PARTS OF THIS CONTRACT TO SELL AS THEY SEE FIT
7. Upon full payment of the total price, the SELLER shall sign and execute a DEED OF ABSOLUTE SALE in favour of the BUYER. The SELLER shall likewise execute and/or deliver any and all documents, including but not limited to the original copy of Transfer Certificate of Title, Tax Declaration and all other documents necessary for the transfer of ownership from SELLER to the BUYER.
8. In case the SELLER could not fulfil any of the obligations stated in this Contract to Sell, the BUYER shall be entitled to a full refund plus 10% interest per month.
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this
_____ day of _______________________ 20________ at ___________________________________, Philippines.
___________________________________ ___________________________________
Printed Name and Signature of SELLER Printed Name and Signature of BUYER
SIGNED IN THE PRESENCE OF:
___________________________________ ______________________________________
Printed Name and Signature of 1st Witness Printed Name and Signature of 2nd Witness
ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)
_____________________________ ) SS.
BEFORE ME, a Notary Public for and in ________________________________________________________ personally appeared:
Name ID Number Date/Place Issued
Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same are their free act and voluntary deed.
This instrument, consisting of 2 pages, including the page on which this acknowledgment is written, has been signed on the left margin of each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.
WITNESS MY HAND AND SEAL on this ______day of _______________________________20__________ at_____________________________.
Notary Public
Doc. No. ……..;
Page No. …….;
Book No. …….;
Series of 20____.
