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The Owner Financing Promissory Note is a crucial document in Philippine real estate transactions where traditional bank financing is not utilized. It enables property sellers to finance the purchase directly, creating a legally binding agreement that protects both parties' interests. This document must comply with various Philippine laws, including the Civil Code, Truth in Lending Act, and Maceda Law, which provide specific requirements for disclosure, consumer protection, and default remedies. The note typically includes detailed payment terms, interest calculations, security provisions, and default consequences, making it essential for transactions involving installment payments for property purchases. It's particularly useful in situations where buyers may not qualify for traditional bank loans or when sellers prefer to receive regular payments over time while maintaining security interest in the property.

1. Parties: Identification of the Maker (Buyer/Borrower) and the Payee (Seller/Lender), including complete legal names and addresses

2. Background: Brief context of the owner financing arrangement and reference to the main property sale agreement

3. Definitions: Key terms used throughout the document, including 'Principal Amount', 'Interest Rate', 'Maturity Date', and other relevant terms

4. Promise to Pay: The fundamental promise to pay the principal amount with specified interest, including the total amount financed

5. Payment Terms: Detailed payment schedule, including monthly payment amounts, due dates, and term of the note

6. Interest Rate: Clear statement of interest rate, how it's calculated, and whether it's fixed or variable

7. Security: Description of the property securing the note and reference to any related security instruments

8. Default Provisions: Conditions constituting default and consequences, including acceleration of the debt

9. Remedies: Rights and remedies of the Payee in case of default, subject to Maceda Law provisions

10. Truth in Lending Disclosures: Mandatory disclosures required by Philippine law, including total cost of credit

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

12. Execution: Signature blocks and notary requirements