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Offer Agreement (Real Estate) for Philippines

Offer Agreement (Real Estate) Template for Philippines

A Real Estate Offer Agreement under Philippine law is a formal document that outlines a potential buyer's proposal to purchase real property from a seller. This document serves as the initial step in the property acquisition process, incorporating provisions that comply with the Civil Code of the Philippines and relevant real estate laws. It details the offered purchase price, payment terms, conditions, contingencies, and other essential terms of the proposed transaction. The agreement includes specific provisions required by Philippine real estate law, such as compliance with foreign ownership restrictions where applicable, and addresses local property registration requirements.

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What is a Offer Agreement (Real Estate)?

The Real Estate Offer Agreement (Real Estate) is a crucial document in Philippine property transactions that initiates the formal purchase process. It is typically used when a potential buyer wishes to formalize their interest in acquiring real property by presenting a written offer to the property owner. The document must comply with Philippine civil law requirements and real estate regulations, including the Real Estate Service Act (RESA) and the Property Registration Decree. It contains essential information such as property details, purchase price, payment terms, contingencies, and conditions precedent to closing. The agreement serves as a preliminary contract that, upon acceptance, can form the basis for the final deed of sale. It is particularly important in the Philippine context where property transactions require strict documentation and compliance with local property laws, including restrictions on foreign ownership of land.

What sections should be included in a Offer Agreement (Real Estate)?

1. Parties: Identification of the potential buyer (offeror) and seller (property owner), including complete legal names, addresses, and contact information

2. Background: Brief context of the transaction, including the seller's ownership of the property and buyer's interest in purchasing

3. Definitions: Key terms used throughout the agreement, including technical or legal terms specific to Philippine real estate law

4. Property Description: Detailed description of the real estate property, including exact location, boundaries, and title details as registered with the Register of Deeds

5. Purchase Price: The offered purchase price, currency, and payment terms

6. Earnest Money: Amount, payment terms, and conditions for the earnest money deposit

7. Due Diligence Period: Timeframe and terms for the buyer's property investigation and document review

8. Closing Terms: Proposed closing date, location, and requirements for closing the transaction

9. Representations and Warranties: Basic statements of fact from both parties regarding their capacity to enter into the transaction

10. Conditions Precedent: Requirements that must be met before the transaction can proceed to closing

11. Offer Expiration: Duration for which the offer remains valid and mechanism for acceptance

12. Governing Law: Specification that Philippine law governs the agreement

13. Execution: Signature blocks and execution requirements

What sections are optional to include in a Offer Agreement (Real Estate)?

1. Financing Contingency: Terms related to the buyer's need to secure financing, included when purchase depends on obtaining a mortgage

2. Property Inspection Contingency: Detailed terms for property inspection rights and remedies, used when buyer requires specific inspection rights

3. Title Insurance: Requirements for title insurance, included when buyer requires title insurance coverage

4. Broker Representation: Details of real estate brokers involved and commission arrangements, included when brokers are part of the transaction

5. Property Maintenance: Requirements for property maintenance between offer acceptance and closing, included for properties requiring specific maintenance terms

6. Existing Tenancies: Details about current tenants and lease agreements, included when property is subject to existing leases

7. Foreign Ownership Compliance: Special provisions regarding foreign ownership restrictions, included when buyer is non-Filipino

8. Condominium/HOA Provisions: Special terms related to condominium or homeowners association requirements, included for properties within such developments

What schedules should be included in a Offer Agreement (Real Estate)?

1. Schedule A - Property Details: Comprehensive property description, including lot plan, technical description, and title details

2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, including installment amounts and due dates if applicable

3. Schedule C - Due Diligence Requirements: List of documents and investigations required during the due diligence period

4. Schedule D - Permitted Encumbrances: List of accepted liens, encumbrances, or restrictions on the property

5. Appendix 1 - Property Photos: Recent photographs of the property and its major features

6. Appendix 2 - Required Documents: List of documents required from both parties for closing

7. Appendix 3 - Property Tax Certificates: Current tax declarations and certificates showing paid property taxes

8. Appendix 4 - Title Documents: Copy of the current title and any relevant title annotations

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

Property Development

Construction

Banking and Finance

Legal Services

Investment Management

Property Management

Tourism and Hospitality

Retail

Commercial Property

Residential Property

Industrial Property

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Asset Management

Investment

Due Diligence

Risk Management

Operations

Finance

Business Development

Acquisitions

Relevant Roles

Real Estate Broker

Property Lawyer

Legal Counsel

Property Manager

Real Estate Agent

Investment Manager

Asset Manager

Property Developer

Real Estate Analyst

Compliance Officer

Due Diligence Officer

Transaction Manager

Real Estate Portfolio Manager

Property Acquisition Manager

Real Estate Investment Director

Industries








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