Document background
The Holding Deposit Contract is a crucial document used in Philippine real estate transactions when a potential buyer or tenant wishes to secure their interest in a property before proceeding with the final purchase or lease agreement. This document is particularly relevant in competitive property markets where multiple parties might be interested in the same property. The contract typically includes specific details about the property, the deposit amount (usually a percentage of the total property value), the duration for which the property will be held, and conditions for deposit refund or forfeiture. It must comply with Philippine property laws, including the Civil Code of the Philippines and the Real Estate Service Act. The document serves as a preliminary agreement that bridges the gap between initial property interest and final transaction, providing security for both the property owner and the potential buyer/tenant while the necessary due diligence and documentation are completed.
