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    RESERVATION AGREEMENT Et Al.

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    Nathaniel Rasos
    The document discusses the Reservation Agreement, Contract to Sell, and Deed of Sale which are important real estate documents needed in the Philippine real estate process. The Reservation Agreement pertains to the reservation fee payment terms. The Contract to Sell details the total price and payment terms. The Deed of Sale is required for title transfer once the property is fully paid.

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    RESERVATION AGREEMENT Et Al.

    Uploaded by

    Nathaniel Rasos
    4 views2 pages
    The document discusses the Reservation Agreement, Contract to Sell, and Deed of Sale which are important real estate documents needed in the Philippine real estate process. The Reservation Agreement pertains to the reservation fee payment terms. The Contract to Sell details the total price and payment terms. The Deed of Sale is required for title transfer once the property is fully paid.

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    RESERVATION AGREEMENT et al.

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    The document discusses the Reservation Agreement, Contract to Sell, and Deed of Sale which are important real estate documents needed in the Philippine real estate process. The Reservation Agreement pertains to the reservation fee payment terms. The Contract to Sell details the total price and payment terms. The Deed of Sale is required for title transfer once the property is fully paid.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views2 pages

    RESERVATION AGREEMENT Et Al.

    Uploaded by

    Nathaniel Rasos
    The document discusses the Reservation Agreement, Contract to Sell, and Deed of Sale which are important real estate documents needed in the Philippine real estate process. The Reservation Agreement pertains to the reservation fee payment terms. The Contract to Sell details the total price and payment terms. The Deed of Sale is required for title transfer once the property is fully paid.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    RESERVATION AGREEMENT, CONTRACT TO SELL , DEED OF SALE & WHY

    THEY ARE NEEDED IN PHILIPPINE REAL ESTATE DOCUMENTS

    The Reservation Agreement pertains to the agreement that focuses on the terms and conditions
    on the payment of reservation fee. This is actually the first step that is necessary because it
    stipulates that when the buyer does not proceed to sign the contract to sell, or for whatever
    reason does not pursue with the purchase, the buyer agrees that the reservation fee will be
    forfeited. Without this agreement, a buyer who can make a reservation can demand a refund
    when a buyer decides not to push through because there is no legal basis for the forfeiture.
    Besides, the Reservation Agreement is the basis in which the Contract to Sell shall be made
    leading to the more important contract – the Contract to Sell. In brokerage term, Reservation
    Agreement is called Earnest Money – a small amount of money usually few thousand pesos or
    2% to 5% of the Total Contract Price to show interest to purchase on the part of the buyer and
    that the property can be put on hold until such time the Contract to sell or Deed of Sale is ready
    for signing.

    The Contract to Sell – pertains to the entire Total Contract Price stipulating the terms and
    conditions of payment and the description of the unit purchased. This is the contract that will be
    used as legal basis on the right of the buyer to demand a DEED OF SALE when the property is
    fully paid. But the Contract to Sell is not enough basis for the transfer of title to buyer’s name. It
    will only serve as a legal document that will compel the seller / developer to execute the Deed of
    Sale when the property fully paid and/or when all conditions in the contract to sell are complied
    with.

    The Deed of Sale or Deed of Absolute Sale, is the final contract that will be required by the
    Register of Deeds for the transfer of ownership. In case of purchase by installment, this will
    come later when the unit is fully paid; this deed of sale will be the basis for the issuance of
    the Transfer Certificate of Title (TCT) in case of lot purchase or Condominium Certificate of
    title (CCT) in case of Condominium unit purchase to be transferred in the name of the buyer
    which is the final and strongest proof of ownership.

    As a matter of procedure, the developer or seller requires that the buyer shall submit TIN
    (Tax Identification Number) because this is required by BIR before any transaction for tax
    payment is entertained and even in the purchase by installments, TIN has to be submitted in
    advance in preparation for the time when the installments would reach a level that the tax to the
    local government is required. Payment of 25% of total contract price is the level in which tax is
    required to be paid. The developer will pay this in a form of withholding tax but needs buyer’s
    TIN. The buyer’s licensed broker, through his licensed agent should be able to secure this TIN
    at the local BIR office by submitting a copy of the CONTRACT TO SELL.

    As a buyer of Philippine property, it is very important that your licensed real estate broker
    through his/her licensed agents, is knowledgeable about this very important process of Philippine
    real estate documents so he can guide you through the process. This is very important even in
    cases wherein the developer does everything of the paper works and simply charge processing
    fees because there are employees of developers who are not efficient enough to go through these
    processes and will heed to constant and effective follow ups of a knowledgeable licensed real
    estate broker.

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