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Deed Of Conditional Sale

Deed Of Conditional Sale Template for Philippines

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Key Requirements PROMPT example:

Deed Of Conditional Sale

"I need a Deed of Conditional Sale for a residential property in Manila, where I'm selling my condominium unit to an individual buyer for PHP 5 million, with 20% down payment and monthly installments over 24 months starting March 2025."

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Document background
The Deed of Conditional Sale is a crucial legal instrument in Philippine property transactions, commonly used when the buyer cannot make full payment immediately but both parties wish to formalize their agreement. This document type is recognized under the Civil Code of the Philippines and is particularly relevant in real estate transactions where installment payments are involved. The deed serves as an interim agreement that protects both parties' interests: the seller retains ownership until full payment, while the buyer secures their right to eventually acquire the property. It must comply with Philippine property laws, including the Property Registration Decree and the Maceda Law for residential real estate. A properly executed Deed of Conditional Sale typically requires notarization and can be annotated on the property's title to provide public notice of the transaction.
Suggested Sections

1. Parties: Identification of the Seller and Buyer with complete names, civil status, addresses, and tax identification numbers

2. Background: Context of the sale, including brief description of the property and seller's ownership

3. Definitions: Key terms used throughout the deed, including Property, Purchase Price, Closing Date, etc.

4. Property Description: Detailed description of the property including location, boundaries, area, and title details

5. Purchase Price: Total consideration and detailed payment terms including down payment and installment schedule

6. Conditions Precedent: Conditions that must be fulfilled before the final transfer of ownership

7. Representations and Warranties: Seller's declarations regarding property ownership, encumbrances, and authority to sell

8. Rights and Obligations: Specific duties of both parties during the conditional sale period

9. Default and Remedies: Consequences of default by either party and available remedies

10. Transfer of Title: Process and requirements for the eventual transfer of title upon fulfillment of conditions

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

12. Governing Law: Specification of Philippine law as governing law and relevant jurisdictional provisions

13. Execution: Formal signing section with notarial acknowledgment

Optional Sections

1. Property Inspection: Details of property inspection and acceptance of current condition - used when buyer has conducted specific inspections

2. Occupancy Rights: Terms regarding property possession during the payment period - relevant when immediate occupancy is granted

3. Insurance: Requirements for property insurance during the payment period - important for high-value properties

4. Assignment: Rights and restrictions regarding assignment of rights under the deed - used when assignability is a concern

5. Improvements: Provisions regarding modifications to the property during the payment period - relevant for long-term payment arrangements

6. Homeowners Association: Provisions regarding HOA membership and fees - used for properties in planned developments

7. Agricultural Land Reform: Special provisions for agricultural land subject to CARP - used only for agricultural properties

8. Force Majeure: Provisions for unforeseen circumstances affecting the agreement - particularly relevant in areas prone to natural disasters

Suggested Schedules

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

2. Schedule B - Payment Schedule: Detailed amortization table showing all payment dates, amounts, and running balances

3. Schedule C - Title Documents: Copy of the Transfer Certificate of Title and other relevant property documents

4. Schedule D - Tax Clearances: Current real property tax clearances and other tax certificates

5. Schedule E - Special Conditions: List of any special conditions or requirements agreed upon by the parties

6. Appendix 1 - Property Photos: Recent photographs of the property documenting its current condition

7. Appendix 2 - Required Permits: Copies of relevant permits, certificates, and governmental approvals

Authors

Alex Denne

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

alex.den.21@genieai.co
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Real Estate

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Real Estate Lawyer

Property Manager

Real Estate Agent

Corporate Lawyer

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