Professional Documents
Culture Documents
REAL ESTATE
Legal Forms
Atty. Jessica Siquijor- Magbanua
Arellano University School of Law
General Principles
SALE OF REAL ESTATE/ PROPERTY
Generally, form in not important for the validity of a sale.
Reason?
“Acts and contracts which have for their object the creation, transmission, modification or extinguishment of
real rights over immovable property must appear in public instrument”.
NO. The provision of Art. 1358 on the necessity of a public document is only for convenience, not for validity
or enforceability. It is not a requirement for the validity of a contract of sale of a parcel of land that this be
embodied in a public instrument.
(Dalion vs. CA (182 SCRA 872, 1990))
It merely gives cause of action to the party to the contract in a suit to sue to compel the other party to have
the document covering the contract, acknowledged before a Notary Public. (Biona vs. CA, 362 SCRA 29)
Article 1358 of the Civil Code which requires the embodiment of certain contracts in a public instrument, is
only for convenience; and registration of the instrument only adversely affects third parties, and non-
compliance therewith does not adversely affect the validity of the contract or the contractual rights and
obligations of the parties thereunder. (Estreller vs. Ysmael)
As to third persons:
A sale of a piece of land appearing in a private deed cannot be considered binding on third persons if it is not
embodied in a public instrument and recorded in the Registry of Deeds. (Santos vs Manalili)
FUNCTIONS OF A DEED OF SALE
Effect:
Without KNOWLEDGE and CONSENT: The contract is VOID. However,
it shall constitute as a CONTINUING OFFER and may be perfected upon
acceptance of the other spouse. Prescriptive period: None, as an
action or defense to declare a contract inexistent does not prescribe
(Art. 1410 NCC);
With KNOWLEDGE but without CONSENT: The contract is VOIDABLE;
the prescriptive period is 5 years from the date of the contract.
(Article 124, Family Code; Fuentes v. Roca, G.R. No. 178902, April 21
2010)
1. Full Name
2. Nationality
3. Residence or Postal Address of the Vendor and Vendee
4. Civil Status; and
5. Full Name of Spouse, if any.
FORMALITIES
REQUIRED
Different Forms of Deed of Sale of Real
Estate
• Deed of Sale of Registered Land
• Deed of Sale of Unregistered Land
• Deed of Sale of Private Agricultural Land
• Deed of Sale of Registered Land Under Pacto
De Retro
• Deed of Sale of a Portion of Real Estate
• Sale of Land with Mortgage
• Sale of Condominium Unit
Sample Deed of Absolute Sale of
Registered Land
DEED OF ABSOLUTE SALE
This DEED OF ABSOLUTE SALE is made, executed and entered into by:
-AND-
WHEREAS, the SELLER is the registered owner of a parcel of land with improvements located at
_______(address of property)_____ and covered by Transfer Certificate of Title No. __________
containing a total area of ______________________________ (____) SQUARE METERS, more or less,
and more particularly described as follows:
Property Descriptions
Boundaries
North : ___________________________
East : ___________________________
West : ___________________________
South : ___________________________
Sample Deed of Absolute Sale
WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the above
mentioned property for the amount of ______________________ (Php ________)
Philippine Currency;
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this ___ day
of ____________, 20__ at _________________________, Philippines.
_______________________ _____________________
Sample Deed of Absolute Sale
ACKNOWLEDGMENT
BEFORE ME, a Notary Public for and in the City of ___________________, this
___________________, personally appeared
______Seller/Vendor_________________ exhibiting to me his Passport No.
_____________ issued on ________________ and set to expire on
_____________, and ____ Buyer____ exhibiting to me her Passport No.
_____________ issued on _____________ and set to expire on
________________ as their competent evidence of identity bearing their
photograph and signatures, who are known to me and to me known to be
the same persons who executed the foregoing instrument and acknowledged to
me that the same is their own free act and voluntary act and deed.
This instrument, consisting of (__) pages, including the page on which this
acknowledgment is written, has been signed on the left margin of each and every
page hereof by the concerned parties and their witnesses, and sealed with my
notarial seal.
Sample Deed of Absolute Sale
WITNESS MY HAND AND SEAL, at the place and date above-written.
ATTY __________________________________
COMMISSION NO. _________________________
NOTARY PUBLIC for _________________________
UNTIL DECEMBER 31, 2007
OFFICE: _________________________
ROLL NO. 00001
IBP Lifetime Roll No. 1234567 ; 01/07/07 ; LA UNION
MCLE COMPLIANCE No. __________; July 7, 2016
“ The above-described real estate, not having been registered under Act No.
496 nor under the Spanish Mortgage Law, the parties hereto have agreed to
register this instruments under the provisions of Sec. 194 of the Revised
Administrative Code, as amended by Act. No. 3344”.
Deed of Sale of Private Agricultural
Land
Notes to Remember:
In addition to the requisites of law for the due registration of
an ordinary deed of sale of land, a deed of sale of private land
must conform with the Constitution of the Philippines (Sec. 7,
Art. XII of the 1987 of the Constitution)
“That the vendor, in executing this conveyance, hereby reserves the right to REPURCHASE,
and the VENDEE, in accepting the same, hereby obligates himself to RESELL, the property
herein conveyed within a period of____ years from and after the date of this instrument for
the same price of______. Provided, however, that if the VENDOR shall fail to exercise his
right to repurchase as herein granted within the period stipulated, then this conveyance
shall become absolute and irrevocable, without the necessity of drawing up a new deed of
absolute sale, subjects to the requirements of law regarding consolidation of ownership of
real property.”
(NOTE:
Usually, such stipulation is place before “IN WITNESS WHEREOF” clause of the Deed)
(To affect 3rd persons, an affidavit of consolidation of ownership is necessary)
Deed of Sale of a Portion of Real Estate
This kind of Deed of Sale must be accompanied by
the “plan of the whole property” showing all the
portions or lots into which it has been subdivided,
and a technical description of or not, both verified
and approved by the Bureau of Lands.
DEVELOPER PURCHASER
Generally the absolute and The buyer of the
registered owner of the parcel condominium unit
of land to which the
Condominium project is set up
“That upon signing of this contract the VENDEE shall pay the VENDOR
a down payment of P _______; that the remaining balance shall be
paid in full upon transfer of title and tax declaration in the name of
the VENDEE;
That the VENDOR reserves his right of ownership over the subject
lands until full payment of the consideration;
Sample Contract to Sell
CONTRACT TO SELL
“Upon full payment of the total price, the SELLER/VENDOR shall sign
and execute a DEED OF ABSOLUTE SALE in favor of
the BUYER/VENDEE. TheSELLER/VENDOR shall likewise execute
and/or deliver any and all documents, including but not limited to the
original copy of Transfer Certificate of Title, Tax Declaration and all
other documents necessary for the transfer of ownership
from SELLER/VENDOR to the BUYER/VENDEE”.
Reminder:
“The parties are free to provide in the Deed of
Sale any stipulations, clauses, terms and
conditions that are not contrary to law, morals,
good customs, public order and public policy.
Here are…
THE REMEDIES
REMEDIES IN SALE OF REAL ESTATE/PROPERTY AFTER
THE CONTRACT OF SALE HAS BEEN PERFECTED
We have previously distinguish between Contract of Sale vs. Contract
To Sell vs. Conditional Contract of Sale.
On defaulting
buyers who default on their payments of installments are entitled to pay, without
additional interest, the unpaid installments due within the total grace period they
have earned. This total grace period has been fixed at the rate of a one-month grace
period for every one (1) year of installment payments made. However, this right can
only be exercised by the buyer once in every five years of the life of the contract and
its extensions.
On contract cancellation
If the contract is canceled, the seller shall refund to the buyer the cash surrender
value of the payments on the property, which is equivalent to 50 percent of the total
payments made. After five years of installments, an additional five percent for every
year of payments will be added, but not to exceed 90 percent of the total payments
made. For this to apply, the actual cancellation of the contract must take place 30 days
after receipt by the buyer of the notice of cancellation. This notice of cancellation or a
demand for rescission at that must be by a notarial act and upon the full payment of
the aforementioned cash surrender value to the buyer.
Applicability of Maceda Law