When it comes to purchasing or selling real estate in the Philippines, it`s crucial to have a clear and comprehensive contract in place. One commonly used contract is the Pag-IBIG Contract to Sell.
The Pag-IBIG Contract to Sell is a legal document used by the Home Development Mutual Fund (HDMF), also known as Pag-IBIG Fund, which provides affordable housing financing options to Filipino citizens. The contract is designed to protect both the seller and buyer in the transaction of property.
In this article, we`ll take a closer look at the Pag-IBIG Contract to Sell and provide a sample that you can use as a guide.
What Is the Pag-IBIG Contract to Sell?
The Pag-IBIG Contract to Sell is a binding agreement between the seller and the buyer of a property. The contract outlines the terms and conditions of the sale, including the purchase price, payment terms, and the timeframe for the completion of the transaction.
Additionally, the contract includes provisions that protect both the seller and the buyer. For instance, if the buyer fails to make payments, the seller can rescind the contract and retain the payments made by the buyer as liquidated damages.
Sample Pag-IBIG Contract to Sell
Below is a sample Pag-IBIG Contract to Sell that you can use as a reference when drawing up your own contract:
[Contract Number]
Pag-IBIG Contract to Sell
This Contract to Sell is made and entered into on [Date] by and between [Seller`s Name], a resident of [Address], hereinafter referred to as the “SELLER,” and [Buyer`s Name], a resident of [Address], hereinafter referred to as the “BUYER.”
WHEREAS, the SELLER is the absolute and registered owner of a property described as follows:
[Insert property description here – lot number, size, location, and other pertinent details]
WHEREAS, the BUYER desires to purchase the property from the SELLER on the terms and conditions set forth in this Contract to Sell.
NOW, THEREFORE, for and in consideration of the premises and of the mutual agreements and covenants herein contained, the parties have agreed as follows:
1. Purchase Price. The BUYER agrees to purchase the property from the SELLER for the total price of [Insert purchase price here] payable as follows:
[Insert payment terms here – e.g. down payment, monthly amortization, interest rates, etc.]
2. Completion of Transaction. The parties agree to complete the transaction on or before [Insert completion date here]. The time of completion is of the essence of this Contract to Sell, and failure to complete the transaction on the specified date shall be considered a default by the BUYER.
3. Transfer of Ownership. The SELLER will transfer the ownership of the property to the BUYER upon the completion of the transaction and full payment of the purchase price.
4. Default. In the event of default by the BUYER in the payment of any installment, the SELLER shall have the right to rescind this Contract to Sell, and retain all payments made as liquidated damages.
5. Notices. Any notice to be given under this Contract to Sell shall be in writing and delivered personally or by registered mail to the parties at the addresses set forth herein.
6. Governing Law. This Contract to Sell shall be governed by and construed in accordance with the laws of the Philippines.
IN WITNESS WHEREOF, the parties have executed this Contract to Sell on the date first written above.
SELLER:
[Signature]
[Printed Name]
BUYER:
[Signature]
[Printed Name]
Conclusion
The Pag-IBIG Contract to Sell is a vital document in the sale and purchase of real estate in the Philippines. It protects both the seller and the buyer and outlines the terms and conditions of the transaction. Use the sample provided in this article as a guide when creating your own Contract to Sell. Remember to consult with a lawyer or a real estate expert to ensure that all legal documentation is compliant with relevant regulations and policies.