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The Relationship To Borrower Gift Letter is a crucial document in Philippine real estate transactions where borrowers receive monetary gifts to assist with property purchases. This document becomes necessary when a portion of the down payment or purchasing funds comes from a gift rather than the borrower's own savings or earnings. The letter satisfies Philippine banking regulations and helps prevent money laundering by documenting the source of funds, the relationship between parties, and the non-repayable nature of the gift. It must comply with local tax laws, particularly when the gift amount exceeds tax-free thresholds under Philippine tax regulations. Lending institutions require this documentation to verify that the funds are indeed a gift and not a disguised loan that could affect the borrower's debt-to-income ratio or create future financial obligations.

1. Letter Date and Address Block: Current date and complete contact information for both donor and recipient

2. Gift Amount Declaration: Clear statement of the exact gift amount or detailed description of gifted property

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

4. Source of Funds: Statement confirming the legitimate source of the gifted funds

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

6. Property Details: Information about the property being purchased with the gift funds

7. Donor Certification: Donor's confirmation of financial ability to make the gift without compromising their own financial situation

8. Signatures: Space for donor's signature with notarization requirements