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The Assumption Agreement (Real Estate) is a crucial document used in Philippine real estate transactions when one party wishes to transfer their rights and obligations under an existing property contract to another party. This document is commonly utilized in situations involving property sales, mortgage assumptions, or lease transfers, where the original party cannot or chooses not to continue with their contractual obligations. The agreement must comply with the Philippine Civil Code, Property Registration Decree (PD 1529), and relevant real estate laws, ensuring proper documentation of the transfer of interests and obligations. It includes detailed information about the property, original contract terms, assumption conditions, remaining financial obligations, and necessary consents from all involved parties, particularly when mortgage lenders are involved. The document serves as a legally binding instrument that protects the interests of all parties while facilitating the smooth transition of property rights and responsibilities.

1. Parties: Identification of all parties: Original Borrower/Seller, Assuming Party, and Lender/Original Seller (if applicable)

2. Background: Recitals explaining the original agreement, current situation, and intention to transfer rights and obligations

3. Definitions: Definitions of key terms used throughout the agreement, including reference to the original contract and property details

4. Assignment and Assumption: Core provisions detailing the transfer of rights and obligations from original party to assuming party

5. Property Description: Detailed description of the real estate property being transferred, including legal description and title details

6. Purchase Price and Payment Terms: Details of the assumption amount, payment schedule, and any remaining balance

7. Representations and Warranties: Statements by all parties regarding their authority, property condition, and existing encumbrances

8. Conditions Precedent: Requirements that must be met before the assumption becomes effective

9. Covenants: Ongoing obligations of the parties, including maintenance of property and compliance with original agreement terms

10. Default and Remedies: Consequences of breach and available remedies to affected parties

11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and notarization requirements per Philippine law