LEGAL FORMS

(SUNDAY 10:00 A.M. to 12:00 P.M.)

GROUP 6

MEMBERS: PROFESSOR:
RIAN LEE TIANGCO ATTY. MA. JESUSA ELEANOR
SIQUIJOR-MAGBANUA
CHEENEE SANTIAGO
ANNA MAE SISA
 I.

Contract to Sell refers to an agreement between a seller and a buyer. The contract shows that the seller
promises to sell something to the buyer and the buyer also promises the seller the buy the property
(Article 1479 of the Civil Code).

R.A. No. 6552 (Maceda Law) recognizes in conditional sales of all kinds of real estate (industrial,
commercial, residential) the right of the seller to cancel the contract upon non-payment of an instalment
by the buyer, which is simply an event that prevents the obligation of the vendor to convey title from
acquiring binding force. It also provides the right of the buyer on instalments in case he defaults in the
payment of succeeding instalments.

PARTIES
BUYER – a person who makes a purchase
SELLER – is an individual, or entity, who exchanges any goods or services in return for payment.

CONTENTS OF CONTRACT TO SELL

1. Title of documents
2. Personal circumstances of the Parties
3. Body
a. Witnesseth
b. Terms and Conditions
4. Signatures of the Contracting Parties
5. Signatures of at least 2 witnesses
6. Acknowledgement

CONTRACT TO SELL

KNOW ALL MEN BY THESE PRESENTS:

This Contract to Sell is made and executed and entered into by: 

Juan Dela Cruz, of legal age, Filipino, single, with residence address at Blk. 1, Goldland Villa, Sandejas
St., Pasay City, hereinafter referred to as the SELLER;

-AND- 

       Merry Dela Pena, of legal age, Filipino, married to, Mario Dela Pena and with residence and postal
address at Barangay Sto. Domingo, Almazan St., Batangas City, hereinafter referred to as the BUYER.

WITNESSETH;
         WHEREAS, the SELLER is the absolute and registered owner of a house and lot located at Lot.
33, Sta. Barbara, Barangay Naparing, Dinalupihan, Bataan, covered by Transfer Certificate of Title No.
123456 containing a total area of THREE HUNDRED SQUARE METERS (300sqm), more or less,
issued by the Registry of Deeds of Dinalupihan;

WHEREAS, the BUYER has offered to buy and the SELLER has agreed to sell the above
mentioned property under the terms and conditions herein below set forth;

NOW THEREFORE, for and in consideration of the total sum of FIVE HUNDRED
THOUSAND (P 500,000.00) Philippine Currency, and of the covenants herein after set forth the
SELLER agrees to sell and the BUYER agree to buy the aforesaid property subject to the following
terms and conditions:

1. The total consideration shall be FIVE HUNDRED THOUSAND (P 500,000.00) Philippine

Currency rency, payable through CASH/MANAGERS’ CHECK/WIRE TRANSFER as follows:
1.1 The amount of ONE HUNDRED THOUSAND PESOS (P100,000.00) representing earnest
money deposit shall be payable upon execution of this Contract to Sell and shall be
considered part of the total Contract price.

1.2 The remaining balance amounting to FOUR HUNDRED THOUSAND PESOS

(P400,000.00), shall be payable within TIME FRAME upon execution of this Contract to
Sell.

1.3  In case the BUYERS could not fulfil any of their obligation stated in this Contract To Sell,
the earnest money shall be forfeited in favor of the SELLER.

2. All pending utility bills, if any, Real Estate Tax up to the time of sale, Capital Gains Tax,
Documentary Stamp Tax, shall be for the account of the SELLER.

3. Notarization fees, Registration Fee, Transfer Fees and all miscellaneous fees and expenses to
transfer the certificate of title in the name of the new owner shall be for the account of the SELLER;

4. Possession to the subject property shall be delivered by the SELLER to the BUYER upon full
payment of the total consideration;

5. ADDITIONAL TERMS AND CONDITIONS SUCH AS Delivery of the property shall be given by
the SELLER to the BUYER devoid of any religious artefacts, personal belongings and effects,
tenants and any toxic/radioactive substances. Etc.

6. TERMS AND CONDITIONS MAY VARY ON A CASE-TO-CASE BASIS. CONTRACTING

PARTIE MAY ADD, SUBTRACT, EDIT, ANY OR ALL PARTS OF THIS CONTRACT TO
SELL AS THEY SEE FIT
7. Upon full payment of the total price, the SELLER shall sign and execute a DEED OF ABSOLUTE
SALE in favour of the BUYER. The SELLER 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 to the
BUYER.

8. In case the SELLER could not fulfil any of the obligations stated in this Contract to Sell, the
BUYER shall be entitled to a full refund plus 10% interest per month.

 
IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this_____ day of
_______________________ 20________ at ___________________________________, Philippines.
 

___________________________________                      _______________________________
SELLER/VENDOR                                           BUYER/VENDEE
 

SIGNED IN THE PRESENCE OF:

 ___________________________________                     ________________________________
 
 

ACKNOWLEDGMENT
 
REPUBLIC OF THE PHILIPPINES)
_____________________________ )  SS.

BEFORE ME, a Notary Public, this __________day of ___________, personally appeared the
following:

 
Name                                       I.D. Number                                         Date/Place Issued
JUAN DELA CRUZ PRC I.D. No. 123456 09.11.2019/ PRC MANILA
MERRY DELA PENA VOTER I.D. No. 123456 10.01.2011/ BATANGAS

Known to me and to me known to be the same persons who executed the foregoing instrument and
acknowledged to me that the same are their free act and voluntary deed.
 
This instrument, consisting of 3 pages, including the page on which this acknowledgment is written, has
been signed on the left margin of each and every page thereof by the concerned parties and their
witnesses, and sealed with my notarial seal.
 

WITNESS  MY HAND AND SEAL on this ______day of___________________20__________

at_____________________________.
 
Notary Public
  
Doc. No. ______;
Page No._______;
Book No. ______;
Series of 2019.
 II.

DEED OF DONATION

KNOW ALL MEN BY THESE PRESENTS:

That I, ______________________ of legal age, single / married to __________________

with postal address at ______________________________ hereinafter referred to as the
DONOR, and ____________________________, likewise of legal age, single / married to
_________________________________ with postal address at ____________________
hereinafter called the DONEE, witnesseth:

That the DONOR is the registered owner of a parcel of land, more particularly described as
follows:
( In s e rt d e s crip t io n o f p ro p e rt y t o b e d o n at e d )

That the DONEE is a cousin of the DONOR, who has lovingly dedicated five (5) years of his
life as the latter's personal caregiver and companion;

That FOR AND IN CONSIDERATION of the DONEE'S trust, devotion and affection shown to
the DONOR, and as an act of gratitude and liberality on his part, the DONOR hereby
voluntarily GIVES, TRANSFERS, and CONVEYS by way of donation, unto the said DONEE, his
heirs and assigns, the above described property, together with all the improvements found
thereon, free from all liens and encumbrances;

That the DONOR affirms that this donation is not made with intent to deceive his creditors,
and that he has reserved for himself sufficient funds and property;

That the DONEE hereby accepts and receives this donation made in his favor by the
DONOR, and hereby manifests his gratefulness for the latter's generosity.

IN WITNESS WHEREOF, both the DONOR & DONEE have hereunder subscribed their names
this __________ day of __________________ 20__ at _____________________,
Philippines.

_____________________________ ______________________________
DONOR DONEE

WITNESSES:

_____________________________ ______________________________
 ACKN OW LED GEMEN T

Republic of the Philippines)

_________________________) S.S

BEFORE ME, a notary for and in the City of Makati, personally appeared:

Name CTC Number Date/Place Issued

(Donee) 00000000 June 28, 20__ / Makati City

known to me and to me known to be the same persons who executed the foregoing Deed of Donation and
acknowledged to me that the same is their free and voluntary act and deed.

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

Notary Public
Doc. No._____;
Page No. _____;
Book No._____;
Series of 20__.
 III.

LEASE (Title VIII, Book IV of the New Civil Code)

Art. 1642. The contract of lease may be of things, or of work and service.
Art. 1643. In the lease of things, one of the parties binds himself to give to another the enjoyment or use
of a thing for a price certain, and for a period which may be definite or indefinite. However, no lease for
more than ninety-nine years shall be valid.

CONTRACT OF LEASE/ Lease Contract (Condominium Unit)

 Definition

 a consensual contract which is perfected from the moment there is a meeting of minds
between the lessor and the lessee as to the property to be rented and the amount of rent to
be paid

 How It Works

 one of the most important legal forms in real estate, as it concludes a legally binding
contract between the tenants and landlord
 the agreement conveys upon the tenants the right to live in and furnish a specific property
for a predetermined stretch of time, while the landlord retains ownership
 the landlord retains certain rights such as the termination of contract, which leads to
eviction, if the tenants damage the piece of real estate or prove themselves unsuited in
another way
 if the tenants decide to move for whatever reason, a cancellation letter, giving the
landlord one month to find new occupants, is usually enough
 Generally, the lessor is obliged to maintain the lessee in the peaceful and adequate
enjoyment of the lease for the entire duration of their contract
 In exchange, the lessee must pay rent according to the terms of the lease agreement and
to use the thing leased as a diligent father of a family, devoting it to the use agreed.

 Required Form

 As a rule, no other form shall be necessary for its perfection

 However, there are certain contracts which the law requires to be put in writing, not for
its validity but for the convenience of parties. 
 One of which is an agreement for the lease of property for a period longer than one year. 

“Article 1403. The following contracts are unenforceable, unless they are
ratified:

1. xxx
 2. Those that do not comply with the Statute of Frauds as set forth in
this number. In the following cases an agreement hereafter made shall
be unenforceable by action, unless the same, or some note or
memorandum thereof be in writing, and subscribed by the party
charged, or by his agent; xxx
xxx
e. An agreement for the leasing for a longer period than one
year, or for the sale of real property or of an interest therein;

xxx

 Content
 free to include in you contract of lease such stipulations, clauses, terms and conditions as
deem convenient, provided that they are not contrary to law, morals, good customs,
public order, or public policy (Article 1306, New Civil Code)
 the rental agreement should specify that the tenancy does not include any estate tax, real
property tax, or transfer tax as these financial burdens are usually placed on the landlord
 personal information of the parties
 all the terms and conditions that they have agreed upon
 the amount of the rent
 the place and date when the rent is due
 duration of the period of rent
 restrictions on the leased premises
 interests or penalties due for non-compliance of the agreements
 CONTRACT OF LEAS E

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease written and executed by and between:

NAME OF PROPERTY OWNER, ________ [nationality] citizen, of legal age, with

postal address at __________________________ herein referred to as the LESSOR

-and-

NAME OF CUSTOMER, _________ [nationality] citizen, of legal age with postal address
at
__________________________ hereinafter referred to as the LESSEE.

WITNES S ETH
WHEREAS, the LESSOR is the legal owner of a two-bedroom unit situated at
________________________ [ADDRESS OF PROPERTY], with floor area of ___ square
meters, herein referred to as the LEASED PREMISES ;

WHEREAS, the LESSEE is desirous of leasing from the LESSOR the LEASED
PREMISES, with furnishings and eq ipment listed in Anne A, for the period, the price
and under the terms and conditions herein provided and the LESSOR has agreed to lease the
same to the LESSEE.

NOW THEREFORE, in consideration of the above premises and of mutual promises,

covenants, and stipulations herein stipulated, the parties hereto have agreed and do hereby
agree as follows:

1. TERM

The lease shall be for a period of _______________, commencing on __________[DATE]

(the Term ) ith the option to rene pon 45-DAY NOTICE in writing given prior to its
termination, upon mutual consent of both parties.

2. RENTAL, DUES, INSURANCE, ETC.

The LESSEE shall pay for the use of the LEASED PREMISES the monthly rental of
____________________________________________________ [AMOUNT SPELLED
OUT] __________ [AMOUNT IN SYMBOL], inclusive of association dues. Other charges
for electricity, water, telephone and cable TV service shall be for the account of the
LESSEE.

Upon signing this Agreement, the LESSEE shall pay the LESSOR through wire
transfer/money transfer directly to the LESSOR S provided bank account the amount of
____________________________________________________ [AMOUNT SPELLED
OUT] __________ [AMOUNT IN SYMBOL], representing the 2-month security deposit
and 2-month advance rental, the latter shall be applied on the first 2 months of the rent.

Account Name Account Number Bank/Branch

Upon signing this Agreement, the LESSEE shall issue ___ postdated checks payable to the
LESSOR at __________ each, itemized as follows:

The Security Deposit shall be maintained to answer for any unpaid charges for gas, water,
electricity, Internet, and telephone incurred by the LESSEE, and damages to the premises,
with the exception of natural wear and tear. The amount, after due deduction therefrom,
should there any, shall be refunded to the LESSEE within 60 days from the complete return
of the PREMISES.

3. USE OF PREMISES

The LESSEE agrees to use the leased PREMISES exclusively for his and his famil s
residential use and for no other purpose without the written consent of the LESSOR. The
leased PREMISES may not be subleased without written consent of the LESSOR.

4. WATER, ELECTRICITY, AND OTHER UTILITIES

The LESSEE shall be responsible for the payment of water, electricity, gas, Internet
subscription, telephone, garbage collection fees, etc.

5. MAINTENANCE AND REPAIRS

The LESSEE shall keep the LEASED PREMISES in clean and sanitary condition and keep
them, at all times, in very good condition. The LESSEE shall repair, replace, or restore major
or minor damages in the leased PREMISES arising from his fault or negligence. Before
moving in to the property, the LESSEE has inspected the PREMISES and found the same to
be in good and tenantable condition.

6. IMPROVEMENTS AND ALTERATIONS

The LESSEE shall not make any structural alteration, addition or improvement on the leased
PREMISES without the written consent of the LESSOR. Any major alterations or
improvements made or introduced by the LESSEE in the Leased Premises with the written
consent of the LESSOR shall upon termination or expiration of this Contract, automatically
inure to the benefit of the Leased Premises and become property of the LESSOR without any
obligation on the latter s part to pa for its value or cost to the LESSEE.

7. FIRE HAZARD AND HAZARDOUS SUBSTANCE

The LESSEE shall not keep, deposit, or store in the Leased Premises any hazardous or
inflammable material or substance that might constitute a fire hazard.

8. TAXES AND INSURANCE

Real Property Taxes, government assessments, and fire insurance charges and similar
expense shall be for the LESSOR s acco nt. Insurance of personal effects of the LESSEE
shall be for the LESSEE s acco nt.

9. SALE, TRANSFER, AND MORTGAGE

The LESSOR reserves the right to mortgage, sell, or otherwise dispose of the property,
pro ided the LESSEE S rights nder this lease are respected. The LESSEE agrees to allow
the LESSOR or his authorized representative, to enter the PREMISES, together with the
prospective buyers upon prior notice and arrangement made by the LESSOR with the
LESSEE and at reasonable hours. The LESSOR agrees that in the event such sale of the
leased PREMISES occurs, the condition embodied in this Lease Contract, shall be respected
and honored by the new owner.

10. THIRD-PARTY LIABILITY

The LESSEE, during his occupancy of the Leased Premises, shall hold the LESSOR free
from any liability or responsibility to any person or property arising out of or as a
consequence of the use of the LEASED PREMISES by the LESSEE, his immediate family,
his agents, employees, domestic help and guests. When such damage or liability is caused by
fortuitous events or acts of God such as typhoon, earthquake, flood, etc., which are beyond
the control of the LESSEE, or by acts of the LESSOR, or his agents, the latter shall not be
liable to the LESSOR.

In case of damage to the leased PREMISES by fire, earthquake, war, or any other unforeseen
cause, the LESSEE shall immediately give notice thereof to the LESSOR. If the leased
PREMISES shall be damaged by fire or other cause without fault or negligence of the
LESSEE or its agents, servants, or visitors, the injury shall be repaired at the expense of the
LESSOR as soon as possible after such notice. If leased PREMISES are destroyed as to
make it untenantable, without the fault or neglect of the LESSEE, either party may demand
recission of this contract. As a consequence thereof, all unused advance rentals shall be
refunded by the LESSOR to the LESSEE.

11. INSPECTION OF PREMISES

The LESSEE shall maintain the leased PREMISES in good and tenantable condition. The
LESSOR reserves the right, at reasonable times and with notice, to enter and inspect the
leased PREMISES.

12. SUBLEASE AND ASSIGNMENT OF RIGHTS

The LESSEE shall not assign, sell, or transfer his leasehold rights to the leased PREMISES
or any part thereof without the prior written consent of the LESSOR.

13. GUARANTEED LEASE

This Lease Contract may not be terminated during the lease period. In the event the LESSEE
terminates the Contract after 6 months and decides to move out of the unit with 30 days’
notice, the 1-month deposit shall be forfeited in favor of the LESSOR and 1-month deposit
shall be refunded to the LESSEE. However, the LESSEE shall have the option to assign a
successor subject to acceptability of such assignee to the Leased Premises by giving 30 days
written notice in advance to the LESSOR.

However, pre-termination of this Lease Contract by the LESSOR shall not entitle him to
refund of the 2-month Security Deposit.

14. RULES AND REGULATIONS

The LESSEE agrees to abide by the existing rules and regulations promulgated by the
s bdi ision s association, and other la s, ordinances, r les and regulations promulgated or
shall be promulgated by the competent authorities affecting the occupancy of the LEASED
PREMISES.

15. RETURN OF LEASED PREMISES

The LESSEE, upon the expiration of this Lease Contract, shall amicably surrender the leased
PREMISES to the LESSOR, in the same condition in which it was received, save what has
been lost or impaired by the lapse of time, by ordinary wear and tear, or of a fortuitous event.
Sixty days prior to the return of the leased PREMISES, the LESSOR may show the
PREMISES to prospective tenants at reasonable hours with prior notice and may also affix a
For Rent sign thereon.

16. NO WAIVER

Failure of the LESSOR or the LESSEE to insist, in one or more instances, the strict
performance of any of the covenants of this lease, or to exercise any portion herein contained,
shall thereafter not be construed as abandonment or cancellation or waiver of such covenant
or option. No waiver shall be deemed to have been made unless expressed in writing and
signed by the LESSOR or the LESSEE.

17. BREACH OR DEFAULT

Should either party violate any of the terms and conditions of this Lease Contract, the
aggrieved party shall have the right to terminate this contract without prejudice to any claim
arising therefrom. However, before this provision shall take effect, the party guilty of the
violation shall be given 30 days to correct or make good the violation.

18. ENTIRETY OF AGREEMENT

This Lease Contract represents the entire agreement between the LESSOR and the LESSEE
and supersedes all prior negotiations, representations or agreements, either oral or written.
This Contract may be amended only by written instrument signed and agreed by both parties.
 ___________________

IN WITNESS WHEREOF, the parties hereto have hereunto affixed their signatures on this
day of ________________________ in __________________________ .

_________________________________ _________________________________
NAME OF LESSOR NAME OF LESSEE

Signed in the presence of:

_________________________________ _________________________________
 IV.

Deed of Absolute Sale of a Motor Vehicle

1. Definition
 Document executed for the transfer of ownership of a motor vehicle through a sale from the
Buyer to the Seller upon full payment of the purchase price.
 Contains the terms and conditions of the sale between the Buyer and the Seller, including a
description of the motor vehicle to be sold and the purchase price
 Can be used to record the sale of all types of land vehicles that must be registered with the Land
Transportation Office such as passenger cars, motorcycles, trucks, etc.

2. Parties

2.1 Seller-the registered owner of the motor vehicle

If married, the spouse must signify his or her consent.  Otherwise, the sale is void.

Family Code:

 If the spouse sold the property without the consent and knowledge of the other spouse,
then the sale is void.  However, the transaction shall be considered as a continuing offer
and may be perfected upon acceptance of the other spouse.
 If the spouse sold the community property with the knowledge but without the
consent of the other, the contract is merely voidable.  The other spouse has 5 years from
the date of the contract to go to court and seek the annulment of the contract.
2.2 Buyer-person who will be registered as the owner of the motor vehicle after the sale

No need for spousal consent but best to include as it may form part of the Absolute
Community of Property or Conjugal Partnership of Gains.

2.3 Parties can either be an individual or organization:

 Individuals. 
 Must be 18 years old and above.
 If minor, guardians should also sign the document.
 Organizations.
 Must appoint and authorize a representative to sign on its behalf.
  Authority of the representative should be evidenced in a document such as
Secretary's Certificate.

3. Motor Vehicle
 Should be one that requires registration in the Land Transportation Office such as cars, trucks,
motorcycles, tricycles, and the like.
 Seller should have the Certificate of Registration ready as well as information on the make,
series, type of body, year model, motor number, serial or chassis number and the plate number of
the Motor Vehicle that is being sold
 Seller should check the Vehicle Identification Number ("VIN"). The VIN plate is a metal plate
that can usually be found in the dashboard on the driver's side of the vehicle or the door post of
the driver's side door.

4. Manner of Payment. 
Full payment purchase price
 Minor's Funds. If the funds of a person under 18 years old will be used to purchase the
Motor Vehicle, a Family Court must authorize the use of the Buyer's funds for the purchase.

Contract to Sell vs. Contract of Sale

CONTRACT TO SELL CONTRACT OF SALE

(Article 1479 of the Civil Code) (Article 1458 of the Civil Code)
Definition agreement between a buyer and a seller agreement between a buyer and a
whereby the seller promises to sell seller whereby the seller agrees to
something to the buyer and the buyer give or deliver something to the
promises to buy it buyer for a certain price which the
buyer agrees to pay
Transfer of None. There are conditions to be Yes
Ownership fulfilled. A Contract of Sale must be Absolute: full payment
executed to effect transfer of ownership Conditional: installment or
fulfillment of condition/s

Deed of Absolute Sale vs. Deed of Conditional Sale

DEED OF ABSOLUTE SALE DEED OF CONDITIONAL SALE

“Straight up” Sale There is a resolutory condition
full payment is made and there is payment will be made in installments or there
immediate transfer of ownership. is some condition before transfer of full
ownership