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Co Purchase Agreement for Philippines

Co Purchase Agreement Template for Philippines

A Co-Purchase Agreement under Philippine law is a legally binding document that establishes the terms and conditions for two or more parties to jointly purchase and own an asset or property. This agreement, governed by the Civil Code of the Philippines and relevant property laws, outlines the rights, responsibilities, and obligations of all co-purchasers, including their respective ownership shares, financial contributions, management rights, and procedures for handling disputes or eventual sale of the co-owned property. The document incorporates specific provisions required under Philippine jurisdiction while addressing practical aspects of co-ownership such as maintenance responsibilities, decision-making processes, and exit strategies.

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What is a Co Purchase Agreement?

The Co-Purchase Agreement serves as a crucial legal instrument in the Philippine business and property landscape, where joint purchases are becoming increasingly common due to rising asset values and strategic business partnerships. This document is essential when two or more parties wish to combine their resources to purchase property, equipment, or other significant assets. The agreement, while following Philippine legal requirements, typically includes detailed provisions about ownership structure, financial obligations, management rights, and dispute resolution mechanisms. It's particularly relevant in today's market where co-ownership arrangements are seen as a practical solution for both residential and commercial property acquisition, as well as major asset purchases. The document must comply with Philippine civil law requirements, including proper execution and notarization where required.

What sections should be included in a Co Purchase Agreement?

1. Parties: Identification of all co-purchasers with their complete legal names and addresses

2. Background: Context of the agreement, including the purpose of the co-purchase arrangement and brief description of the property/item to be purchased

3. Definitions: Definitions of key terms used throughout the agreement

4. Purchase Details: Specific details of the item/property being purchased, including full description, purchase price, and seller information

5. Ownership Structure: Clear definition of ownership shares and type of co-ownership arrangement

6. Financial Contributions: Detailed breakdown of each party's financial contributions, including initial payment and ongoing costs

7. Payment Terms: Schedule and method of payments, including handling of deposits and installments

8. Management and Decision Making: Process for making decisions about the co-purchased property/item and day-to-day management responsibilities

9. Rights and Obligations: Specific rights and responsibilities of each co-purchaser

10. Expenses and Maintenance: Allocation of ongoing expenses, maintenance costs, and unexpected repairs

11. Transfer Restrictions: Limitations on selling or transferring ownership interests

12. Default and Remedies: Consequences of default and available remedies

13. Term and Termination: Duration of the agreement and conditions for termination

14. Governing Law: Specification of Philippine law as governing law and jurisdiction

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Co Purchase Agreement?

1. Usage Rights: Specific terms about usage rights and scheduling when the co-purchased item is meant to be shared (relevant for vehicles, vacation homes, etc.)

2. Insurance Requirements: Details of required insurance coverage and cost sharing (particularly relevant for high-value items)

3. Right of First Refusal: Terms giving co-owners the first right to purchase if one party wishes to sell their share

4. Dispute Resolution: Alternative dispute resolution procedures such as mediation or arbitration

5. Death or Incapacity: Provisions dealing with death or incapacity of a co-purchaser

6. Refinancing Provisions: Terms governing potential refinancing of any loans (particularly relevant for real estate)

7. Property Management: Terms for hiring and managing property managers or maintenance services (relevant for real estate)

8. Environmental Matters: Environmental responsibilities and liabilities (relevant for real estate)

What schedules should be included in a Co Purchase Agreement?

1. Schedule A - Property Details: Detailed description of the property/item being purchased, including any relevant technical specifications or legal descriptions

2. Schedule B - Financial Contributions: Detailed breakdown of each party's financial contributions and payment schedule

3. Schedule C - Ownership Percentages: Clear documentation of ownership percentages and any special arrangements

4. Schedule D - Management Procedures: Detailed procedures for management and decision-making

5. Schedule E - Maintenance Schedule: Regular maintenance requirements and responsibilities (if applicable)

6. Appendix 1 - Property Documents: Copies of relevant property documents, titles, or certificates

7. Appendix 2 - Valuation Report: Independent valuation or assessment of the property/item (if applicable)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions









































Clauses






























Relevant Industries

Real Estate

Financial Services

Legal Services

Property Management

Insurance

Retail

Automotive

Manufacturing

Agriculture

Technology

Construction

Tourism and Hospitality

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Operations

Business Development

Property Management

Investment

Corporate Affairs

Relevant Roles

Legal Counsel

Real Estate Manager

Property Developer

Financial Advisor

Business Development Manager

Investment Manager

Contract Administrator

Risk Manager

Corporate Lawyer

Property Manager

Compliance Officer

Chief Financial Officer

Asset Manager

Operations Director

Real Estate Agent

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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