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The Gift Letter For Down Payment is a crucial document in Philippine real estate transactions where property buyers receive financial assistance from family members or other donors for their down payment. This document is typically required by banks and financial institutions as part of mortgage loan applications to verify that the down payment funds are genuinely gifted and not borrowed money that would create additional debt obligations for the buyer. The letter must comply with Philippine Civil Code provisions on donations, National Internal Revenue Code requirements for gift taxation, and Anti-Money Laundering Act regulations regarding fund transfers. It's commonly used when parents help their children purchase property, or in other situations where significant monetary gifts are involved in property transactions. The document provides protection for all parties involved - the donor, recipient, and lending institution - by clearly establishing the terms and nature of the financial gift.

1. Date and Place: Current date and location where the letter is executed

2. Recipient Information: Name and address of the financial institution or mortgage lender

3. Donor Information: Full legal name, address, and contact information of the person giving the gift

4. Recipient (Donee) Information: Full legal name, address, and contact information of the person receiving the gift

5. Gift Amount Declaration: Specific amount being gifted, written in both numbers and words

6. Property Information: Details of the property for which the down payment is being gifted

7. Relationship Statement: Declaration of the relationship between donor and recipient

8. No Repayment Statement: Clear statement that the money is a gift and not a loan requiring repayment

9. Source of Funds Declaration: Statement explaining the legitimate source of the gifted funds (required by Philippine anti-money laundering regulations)

10. Signature Block: Space for donor's signature, printed name, and date