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A Contract to Sell is a common agreement in Philippine real estate where the seller promises to transfer property ownership to the buyer only after full payment of the purchase price. Unlike a regular sale, the seller keeps the title until the buyer completes all payments, making it a popular choice for installment-based property purchases.

Under Philippine civil law, this arrangement protects sellers from buyer default while giving buyers a clear path to ownership. The agreement becomes binding once signed, but the actual transfer of ownership rights happens automatically when the buyer fulfills all payment obligations. Courts consistently recognize this distinction from an absolute sale, where title transfers immediately.

A Contract to Sell makes the most sense when selling valuable property through installment payments in the Philippines. It's particularly useful for developers selling pre-construction condos, landowners offering long-term payment schemes, or businesses disposing of high-value assets while maintaining security until full payment.

This agreement works well when dealing with buyers who need flexible payment terms but can't secure immediate bank financing. It offers stronger protection than a regular deed of sale because sellers retain ownership until receiving complete payment. For large transactions, especially in real estate development, it helps manage cash flow while safeguarding the seller's interests against payment defaults.

• Purchase Sale Agreement: Basic Contract to Sell format used for general property transactions with standard payment terms and conditions
• Deed Of Sale Of Land: Specialized version for real estate with detailed land descriptions and zoning compliance terms
• Deed Of Sale For Car: Modified format for vehicle sales with specific provisions for registration transfer and mechanical warranties
• Sales Agreement Contract: Flexible version adaptable for business assets with customizable payment schedules
• Motor Vehicle Sale Agreement: Detailed variation for automotive transactions with LTO compliance requirements

• Real Estate Developers: Primary users of Contracts to Sell when offering pre-selling condominiums or subdivision lots with installment payment schemes
• Property Owners: Individual sellers who want to protect their interests while offering flexible payment terms to buyers
• Real Estate Brokers: Facilitate transactions and often assist in drafting or customizing the agreement terms
• Property Buyers: Typically middle-class Filipinos seeking affordable payment terms for property acquisition
• Legal Professionals: Draft and review agreements to ensure compliance with Philippine property laws and protect client interests
• Banks/Financing Institutions: Often involved in reviewing or holding these contracts when providing financing assistance

• Property Details: Gather complete property description, boundaries, title numbers, and tax declaration details
• Party Information: Collect full legal names, addresses, and valid IDs of both seller and buyer
• Payment Terms: Document the total price, downpayment amount, installment schedule, and interest rates if applicable
• Title Status: Verify clean title ownership and absence of liens or encumbrances
• Special Conditions: List any specific requirements like construction deadlines or usage restrictions
• Default Provisions: Specify consequences of payment defaults and remedies available to both parties
• Documentation: Prepare supporting documents like tax clearances and property surveys

• Parties Section: Complete legal names and addresses of buyer and seller, with their legal capacity to contract
• Property Description: Detailed technical description, boundaries, and title information of the subject property
• Price and Terms: Total purchase price, payment schedule, and specific conditions for installments
• Retention of Title: Clear statement that ownership remains with seller until full payment
• Default Provisions: Consequences of missed payments and remedies for both parties
• Transfer Terms: Conditions and process for executing the final deed of sale
• Warranties: Seller's guarantees about property condition and clean title
• Signatures: Formal execution block with notarization requirements

A Contract to Sell differs significantly from a Real Estate Sale Contract in several key aspects under Philippine law. While both deal with property transactions, their legal effects and timing of ownership transfer are fundamentally different.

• Ownership Transfer: In a Contract to Sell, title remains with the seller until full payment, while a Real Estate Sale Contract transfers ownership immediately upon signing
• Payment Terms: Contract to Sell typically involves installment payments with conditional ownership, whereas Real Estate Sale Contract usually requires immediate or short-term full payment
• Legal Remedies: Contract to Sell allows automatic cancellation for non-payment, while Real Estate Sale Contract requires legal action to rescind
• Risk Transfer: In a Contract to Sell, property risk stays with seller until full payment, but Real Estate Sale Contract transfers risk immediately to buyer
• Documentation: Contract to Sell requires a separate deed of sale upon completion, while Real Estate Sale Contract serves as the final transfer document