Before diving into the details of a sample contract to sell Pag-IBIG, let`s first talk about what Pag-IBIG is. Pag-IBIG is an acronym for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno. It`s a government agency in the Philippines that provides affordable housing finance to its members.
When it comes to selling a property financed by Pag-IBIG, it`s essential to have a contract that outlines the terms and conditions of the transaction. This contract is legally binding and protects both the buyer and the seller from any potential disputes.
Here`s a sample contract to sell a Pag-IBIG property:
CONTRACT TO SELL
This contract to sell is made and executed on the _____ day of ___________, 20__ by and between:
SELLER: [Name of the seller], of legal age, Filipino citizen, and a resident of [Address of the Seller], Philippines.
BUYER: [Name of the buyer], of legal age, Filipino citizen, and a resident of [Address of the Buyer], Philippines.
WHEREAS, the SELLER is the registered owner of a property located at [Address of the Property] covered by Transfer Certificate of Title No. [TCT No.] (the “Property”), which has been financed by the Home Development Mutual Fund, more commonly known as Pag-IBIG;
WHEREAS, the BUYER is interested in purchasing 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 sum of [Amount of the Purchase Price] Philippines Pesos (Php [Amount of the Purchase Price].00), receipt of which is hereby acknowledged by the SELLER, the parties hereby agree to the following terms and conditions:
1. Purchase Price. The total purchase price of the Property is Php [Amount of the Purchase Price].00. The BUYER shall pay the purchase price in the following manner:
• An Earnest Money of Php [Amount of the Earnest Money].00 shall be paid upon the signing of this Contract to Sell;
• The remaining balance of Php [Amount of the Remaining Balance].00 shall be paid on or before [Date of the Full Payment].
2. Transfer of Ownership. The SELLER shall transfer the ownership of the Property to the BUYER upon the full payment of the purchase price. The SELLER shall execute and deliver to the BUYER a Deed of Absolute Sale that conforms to the requirements of the Home Development Mutual Fund.
3. Expenses. All expenses related to the transfer of ownership, such as the capital gains tax, documentary stamp tax, registration fee, notarial fee, and other incidental expenses, shall be for the account of the BUYER.
4. Default. In case of default by the BUYER in the payment of the purchase price, the SELLER shall be entitled to cancel this Contract to Sell and forfeit the Earnest Money as liquidated damages.
5. Governing Law. This Contract to Sell shall be governed by and construed in accordance with the laws of the Republic of the Philippines.
6. Entire Agreement. This Contract to Sell represents the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements, whether oral or written, relating to the subject matter of this Contract to Sell. This Contract to Sell may not be amended or modified except in writing signed by both parties.
IN WITNESS WHEREOF, the parties have hereunto set their hands on the date and place first above written.
___________________________
SELLER
___________________________
BUYER
Signed in the presence of:
___________________________
WITNESS
___________________________
WITNESS
In conclusion, having a well-written contract to sell a Pag-IBIG property is crucial in ensuring a smooth and hassle-free transaction between the buyer and seller. It`s important to remember that every contract is unique, and it`s always advisable to seek legal advice before signing any legal document.