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Earnest Money Agreement

AGREEMENT TO PURCHASE REAL ESTATE

The undersigned, ________________________________married to ________________________________  residing at  ____________________________________________  hereinafter called “Purchaser” hereby offers to purchase from the owner, JUAN DELA CRUZ, residing at Hillsview, La Guerta, Lahu, Cebu City, Cebu, Philippines, hereinafter called “Seller”, the real estate property located at Hillsview, La Guerta, Lahug, Cebu City, Cebu, Philippines, the descriptions of which are:

Three Hundred Fifty (350) square meters lot area covered by Certificate of Title No. t-188160 with all improvements found thereon, consisting of one unit single detached 4-bedroom 2-storey house with carport;

That Parties enter into this Agreement subject to the following terms and conditions:

PURCHASE PRICE AND TERMS OF PAYMENT:

The purchase price shall be Ten Million Five Hundred Thousand Pesos (Php10,500,000.00) payable through the proceeds of a bank loan and a down payment equivalent to the amount of loan difference.

EARNEST MONEY DEPOSIT

The Purchaser hereby puts up an Earnest Money Deposit in the amount of One Hundred Thousand (Php100,000.00) Pesos which forms part of the purchase price of the property.

PERIOD OF RESERVATION:

The Purchaser hereby reserves the exclusive right to purchase the aforementioned property and the Seller cannot offer the aforementioned property to any third party until ____________________.

CONDITIONS OF THE EARNEST MONEY:

It is agreed and understood that the Purchaser shall apply for approval of bank loan for the purchase of the aforementioned property. The Purchaser shall make a down payment in favor of the Seller at an amount equivalent to the loan difference between the appraised value of the property and the total purchase price immediately after the approval of a bank loan applied by the Purchaser. Upon receipt of the Letter of Guarantee from the bank and the aforementioned down payment from the Purchaser, the Seller shall immediately execute a DEED OF SALE in favor of the Purchaser conveying the said property with full warranty of a legal and valid title as provided by law, free and clear from any liens and encumbrances and shall allow the title of the property to be processed for transfer into the name of the Purchaser.

Upon execution of a DEED OF SALE, the Seller shall undertake the payment of the Capital Gains Tax with documentary stamps tax and Broker’s fee. The Purchaser shall shoulder the payment of Transfer Tax, Registration Fee and all other expenses related to the transfer of title of the property under the name of the Purchaser.

Moreover, the Seller undertakes to faithfully perform the following prior to the expiration of the Period of Reservation:

  1. a)Furnish the Purchaser the details of Seller’s Tax Identification Number to ensure that Seller has no pending open case/s with BIR;
  2. b)To update all payments of government fees, interest, and penalties in relation to the real property tax over the aforementioned property;
  3. c)To update all payments of utilities and homeowners associations dues if any;
  4. d)To furnish original copies of relevant documents of the aforementioned property in order to obtain approval for bank loan.

Unjustified failure of the Seller to comply with the above-mentioned undertakings within the period provided shall result to:

  • automatic cancellation of the Agreement as well as the purchase of the property; and
  • immediate return of the Earnest Money to the Purchaser;

If the Purchaser cannot proceed with purchase of the aforementioned property without any cause on the part of the Seller, then the Seller shall have the right to terminate this agreement in which case the EARNEST MONEY shall be forfeited in favor of the Seller as liquidated damages. However, if the Purchaser cannot proceed with the purchase of the said property, the EARNEST MONEY shall be forfeited in favor of the Seller as liquidated damages.

GENERAL CONDITIONS:

It is expressly agreed that this agreement to purchase real estate includes the entire agreement of Purchaser and Seller. This agreement shall be binding upon the heirs, personal representatives, successors and assigns of both Purchaser and Seller.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this ______ day of __________________ at _________________________, Philippines.

 

 

JUAN DELA CRUZ

SELLER

 

_________________________

Spouse of SELLER

 

_________________________

Purchaser

                         __________________________

Spouse of Purchaser

 

SIGNED IN THE PRESENCE OF:

__________________________               ____________________________

 

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)
City of Cebu                            )  SS.

BEFORE ME, a Notary Public, this ______day of _____________,  2017, personally appeared the following:

Name                                             ID Number                                         Date/Place Issued

Rosario V. Alegado                   ____________________      _______________________

___________________   ____________________      _______________________

___________________    ____________________     _______________________

This instrument, consisting of 2 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.

IN WITNESS  WHEREOF, I have hereunto set  my hand the day, year and place above written.

Doc. No. ……..;
Page No. …….;
Book No. …….;
Series of 2017

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