Deed of Sale of Real Property - Template, Sample Form Pro · PH-law

DEED OF ABSOLUTE SALE
OF REAL PROPERTY WITH ASSUMPTION OF MORTGAGE

KNOW ALL MEN BY THESE PRESENTS:

This DEED OF ABSOLUTE SALE OF REAL PROPERTY WITH ASSUMPTION OF MORTGAGE (the “DEED”) is made and executed at the City/Municipality of ________, Province of ________, this ________, by and between:

________, Filipino, of legal age, ________, with Tax Identification No. ________, and with residence and postal address at ________, hereinafter referred to as the “SELLER”;

-and-

________, Filipino, of legal age, ________, with Tax Identification No. ________, and with residence and postal address at ________, hereinafter referred to as the “BUYER”;

(the SELLER and the BUYER are hereinafter collectively referred to as the “PARTIES”).

WITNESSETH: That —

WHEREAS, the SELLER is the registered and absolute owner of a parcel of land, together with all the improvements existing thereon, situated at ________, covered by Transfer Certificate of Title No. ________ of the Registry of Deeds for ________, with Tax Declaration No. ________ and Property Index Number ________, more particularly described as follows:

________ (the “PROPERTY”);

WHEREAS, the PROPERTY is presently subject to a real estate mortgage constituted in favor of ________ (the “MORTGAGEE”), the outstanding principal balance of which, as of the date hereof, amounts to ________ Pesos (₱________);

WHEREAS, the SELLER desires to sell, transfer and convey the PROPERTY to the BUYER, and the BUYER desires to purchase and acquire the same from the SELLER, with the BUYER assuming the obligations under the existing mortgage, subject to the terms and conditions hereinafter set forth;

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§ 1. Purchase Price. The total purchase price for the PROPERTY is ________ Pesos (₱________), Philippine currency, payable in the manner set forth in § 2 hereof.

§ 2. Manner of Payment. The purchase price shall be satisfied as follows: (a) the sum of ________ Pesos (₱________) shall be paid by the BUYER to the SELLER, receipt of which is hereby acknowledged by the SELLER; and (b) the balance shall be satisfied by the BUYER’s assumption of the EXISTING MORTGAGE in accordance with § 4 hereof. The SELLER shall, upon receipt of the cash portion, issue the corresponding acknowledgment receipt.

§ 3. Existing Mortgage. The PROPERTY is presently mortgaged to the MORTGAGEE as evidenced by that certain ________, acknowledged before Notary Public ________ and entered in the latter’s Notarial Register as Doc. No. ________; Page No. ________; Book No. ________; Series of ________, and duly registered/annotated on the title of the PROPERTY, a copy of which is attached hereto and made an integral part hereof (the “EXISTING MORTGAGE”).

§ 4. Assumption of Mortgage. Effective on ________, the BUYER hereby assumes, and binds the BUYER’s heirs, successors and assigns to assume, the EXISTING MORTGAGE together with all the obligations, liabilities and duties imposed thereunder on the SELLER as mortgagor, including the payment of the outstanding principal, interest, charges and amortizations, as fully and effectually as if the BUYER were the original mortgagor. The PARTIES expressly acknowledge that, pursuant to Article 1293 of the Civil Code of the Philippines, the foregoing assumption and the substitution of the BUYER for the SELLER as mortgagor and debtor shall not be effective as against, nor release the SELLER, without the prior written consent of the MORTGAGEE. The SELLER hereby authorizes the BUYER to transact directly with the MORTGAGEE for such purpose and undertakes to extend all reasonable cooperation and to execute all documents necessary to effect the assumption of the EXISTING MORTGAGE and the transfer of the PROPERTY.

§ 5. Delivery and Possession. The SELLER shall deliver actual, physical and legal possession of the PROPERTY to the BUYER upon the execution of this DEED, together with the owner’s duplicate copy of the title and all pertinent documents relating to the PROPERTY.

§ 6. Liens and Encumbrances. Apart from the EXISTING MORTGAGE disclosed in § 3, the PROPERTY is subject to the following liens and encumbrances:

________

§ 7. Warranties of the SELLER. The SELLER hereby warrants and represents that:

a. The SELLER is the full, lawful and absolute owner of the PROPERTY and possesses the requisite right, power, capacity and authority to sell, transfer and convey the same to the BUYER;

b. The PROPERTY is free and clear from all liens, encumbrances, claims, charges, levies and adverse interests of any kind whatsoever, save only for those expressly disclosed in § 3 and § 6 hereof;

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d. All real property taxes and assessments due on the PROPERTY up to the date of execution of this DEED have been fully paid by the SELLER.

§ 8. Taxes, Fees and Expenses. Unless otherwise agreed in writing, the capital gains tax shall be for the account of the SELLER, while the documentary stamp tax, transfer tax, registration fees, notarial fees and all other costs and expenses arising out of or in connection with the registration and transfer of the title to the BUYER shall be for the account and borne by the ________.

§ 9. Registration. The PARTIES shall cause the registration of this DEED with the Registry of Deeds for ________ and the issuance of a new Transfer Certificate of Title in the name of the BUYER, subject to such annotations as the MORTGAGEE may require, in accordance with Presidential Decree No. 1529 (the Property Registration Decree).

§ 10. Entire Agreement. This DEED constitutes the entire agreement between the PARTIES with respect to the subject matter hereof and supersedes all prior negotiations, understandings and agreements, whether written or oral. No amendment hereof shall be valid unless made in writing and signed by both PARTIES.

§ 11. Severability. Should any provision of this DEED be declared invalid or unenforceable, the remaining provisions shall continue in full force and effect.

§ 12. Governing Law and Venue. This DEED shall be governed by and construed in accordance with the laws of the Republic of the Philippines. Any action or proceeding arising out of or relating to this DEED shall be brought exclusively before the proper courts of ________, to the exclusion of all other venues.

IN WITNESS WHEREOF, the PARTIES have hereunto affixed their signatures on the date and at the place first above written.

________
Seller

________
Buyer

SIGNED IN THE PRESENCE OF:

________               ________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES    )
PROVINCE OF ________    )
CITY/MUNICIPALITY OF ________    ) S.S.

BEFORE ME, a Notary Public for and in the City/Municipality of ________, this ________, personally appeared the following persons:

1. ________, with competent evidence of identity consisting of Driver's License with number ________ which expires on ________; and

2. ________, with competent evidence of identity consisting of Driver's License with number ________ which expires on ________.

all known to me and to me known to be the same persons who executed the foregoing Deed of Absolute Sale of Real Property with Assumption of Mortgage, and they acknowledged to me that the same is their free and voluntary act and deed, as well as that of the parties they respectively represent.

This instrument, consisting of ________ pages, including the page on which this acknowledgment is written, has been signed on each and every page thereof by the parties and their instrumental witnesses, and refers to the Deed of Absolute Sale of Real Property with Assumption of Mortgage.

WITNESS MY HAND AND SEAL on the date and at the place first above written.

________
Notary Public

Doc. No. ________;
Page No. ________;
Book No. ________;
Series of ________.