Investing in real estate can be costly, not to emphasize the costs of processing legal documents such as Deeds of Absolute Sale, Transfer Certificates of Titles, and other requirements secured from government offices.
In the Philippines, the long and complicated process in owning a real estate starts with the execution of a Deed of Absolute Sale and ends with you registering the title under your name.
As researched, usual process involves — (1) filing and securing documentary requirements, such as notarized Deed of Absolute Sale and latest Tax Declarations of Property, at the Bureau of Internal Revenue Regional District Office; (2) securing Transfer Tax Assessment at Municipal or City Treasurer’s Office; (3) securing Certificate Authorizing Registration (CAR) at the BIR; (4) paying transfer taxes and securing Tax Clearance; (5) filing documents at the Registry of Deeds; and (6), filing documents at the Municipal or Provincial Assessor’s Office for new Tax Declaration – too complicated that normally takes several months.
In this article, I’ll try to dissect a sample Deed of Absolute Sale and provide descriptions of its fundamental elements or parts. As drafting a deed requires abundant caution, presence of mind, and knowledge of property and other allied laws, I highly advise that you seek help from experts and experienced in real estate transactions.
What is a Deed of Absolute Sale?
Generally, a Deed of Absolute Sale is a legal document used in most real estate purchases that details the transfer of ownership without any conditions beyond satisfaction of the purchase price. It is completed and signed by the involved parties and notarized by a legal practitioner prior to the Transfer Certificate of Title.
In the event that payment will be made in installments, or there are certain conditions before the transfer, there is another legal document known as the Deed of Conditional Sale.
Parts of a Deed of Absolute Sale
[1] Title of Deed. As implied above, deeds come in different forms and types. Check if the document and the first section displays the title – Deed of Absolute Sale. Conventionally, the first paragraph runs:
KNOW ALL MEN BY THESE PRESENTS:
This DEED OF ABSOLUTE SALE is made and entered into this 23th day of July, 2017 at Manila, Philippines by and between;
[2] Parties Involved. A Deed of Absolute Sale must contain accurate information about the identities of the selling and buying parties. Accordingly, if the seller is married, the spouse must signify consent, hence the name must be indicated as well. Other information such as age legality, citizenship, and postal address must be included, just as seen below:
JUAN M. DELA CRUZ, married to JUANA M. DELA CRUZ, both of legal age, Filipino citizens and with postal address at San Isidro, Guagua, Pampanga, represented by this instance by their Attorney in-Fact, GREGORIA O. DE CASTRO, hereinafter referred to as the “SELLER”
AND
HILARIO H. MARIANO, married to ESTRELLA I. MARIANO, both of legal age, Filipino citizens with postal address at 270 San Antonio, Guagua, Pampanga, hereinafter referred to as the “BUYER”
As illustrated, an attorney-in-fact shall be representing the sellers. Generally, an attorney-in-fact is a legal representative or a person authorized to perform business-related transactions on behalf of the principal (Search online to find out more).
[3] Property Details. A Deed of Absolute Sale must contain a detailed description of the property, including – the Transfer Certificate of Title number, technical description and boundaries, and others, as exemplified below:
WITNESSETH:
That the VENDOR is the registered owner in fee simple of a certain parcel of Land located at Brgy. of San Isidro, Mun. of Guagua, Prov. of Pampanga covered by Transfer Certificate of Title No. 042-201700000 in the Registry of Deeds, San Fernando, Pampanga, and more particularly described and bounded as follows:
TITLE NO. 042-201700000
“A PARCEL OF LAND (LOT 6 BLK. 5 OF THE SUBD. PLAN PSD-03-123456, BEING A PORTION OF LOT 2, -03-151360, LRC. REC. NO.) SITUATED IN THE BRGY. OF SAN ISIDRO, MUN. OF GUAGUA, PROV. OF PAMPANGA BOUNDED ON THE SE., ALONG LINE 1-2 BY LOT 8; ON THE SW.….
[4] Purchase and Sale Agreement. As one of the most important and critical parts, this specifies the price of sale and settles the terms and conditions of the agreement. See example below:
That for and in consideration of the sum of FIVE HUNDRED TWENTY-FIVE THOUSAND PESOS (P525,000.00), Philippine currency in cash whereof is hereby acknowledged, the “SELLER”, hereby sells, transfers, and conveys unto me the “BUYER” his heirs and assigns, free of all liens and encumbrances or claims whatsoever that certain parcel of land under Transfer Certificate of Title No. 042-201700000.
That it is further declared that the real property above described is free from all liens and/or encumbrances and shall defend its ownership from any and all claims whatsoever.
[5] Execution. Once the Deed of Absolute Sale is drafted, the parties involved shall execute it by affixing their signatures. Other than the selling and buying parties, witnesses should also sign all the pages of the document. In addition, the Deed of Absolute Sale shall be acknowledged and notarized by a legal practitioner.
Click this link to Download Deed of Absolute Sale Template.
Disclaimer: Although much effort has been exerted in the creation of this article, the author disclaims any legal expertise and does not guarantee the accuracy and legitimacy of any or all of the information. Hence, it is advised that you consult with professionals such as registered real estate brokers and lawyers before engaging in legal transactions.
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