A Deed of Absolute Sale in the Philippines is a legal document that transfers the ownership of a property from the seller to the buyer. It is one of the most important documents in a real estate transaction and serves as conclusive evidence of the sale. This document signifies that the property has been sold to the buyer without any conditions other than those explicitly stated in the deed.
Here are the key elements and points to understand about a Deed of Absolute Sale in the Philippines:
- Unconditional Transfer of Ownership: Unlike a Contract to Sell, which is a conditional agreement, a Deed of Absolute Sale results in the unconditional transfer of ownership from the seller to the buyer. Upon the signing of the deed and the payment of the purchase price, the buyer becomes the legal owner of the property.
- Essential Details: The Deed of Absolute Sale typically includes essential information such as the names and addresses of the buyer and seller, a detailed description of the property being sold, the total purchase price, the mode of payment, and the date of transfer of possession and ownership.
- Payment of Taxes and Fees: The buyer and seller are responsible for paying various taxes and fees associated with the sale. These may include the documentary stamp tax, transfer tax, and registration fees. The deed must be properly stamped and registered with the Registry of Deeds to be legally valid.
- Notarization: A Deed of Absolute Sale must be notarized by a notary public. Notarization ensures the authenticity of the document and makes it admissible as evidence in court if necessary.
- Delivery of the Property: The deed signifies the transfer of ownership, but it is also important to specify the date of transfer of possession. This is when the buyer can physically occupy and use the property.
- Title Transfer: After the Deed of Absolute Sale is notarized, it is submitted to the Registry of Deeds where the property is located. The transfer of title from the seller’s name to the buyer’s name is officially recorded in the Registry of Deeds.
- Liens and Encumbrances: The seller guarantees that the property is free from liens and encumbrances, except as stated in the deed. Any existing mortgages, taxes, or other obligations related to the property should be settled before the sale.
It is crucial for both the buyer and seller to fully understand the contents of the Deed of Absolute Sale before signing it. Legal advice from a real estate lawyer is highly recommended to ensure that the document complies with Philippine laws and that the interests of both parties are protected.
Example of Deed of Absolute Sale in Philippines
Creating a Deed of Absolute Sale (DOAS) is a complex legal process that should be done by a licensed attorney or notary public in the Philippines. Below is a simplified example for educational purposes only. Keep in mind that this is a basic template and should be customized to fit the specifics of your transaction. It’s crucial to consult with a legal professional to ensure all legal requirements are met.
DEED OF ABSOLUTE SALE
KNOW ALL MEN BY THESE PRESENTS:
This Deed of Absolute Sale, made and entered into this _ day of __, 20_____, by and between:
Name: [Seller’s Full Name]
Address: [Seller’s Address]
Tax Identification Number (TIN): [Seller’s TIN]
Name: [Buyer’s Full Name]
Address: [Buyer’s Address]
Tax Identification Number (TIN): [Buyer’s TIN]
WHEREAS, the Seller is the registered owner of a certain property located at [Property Address], more particularly described as follows:
[Description of the Property, including TCT/CCT Number, Lot/Area Size, and Boundaries]
WHEREAS, the Buyer has offered to purchase the said property and the Seller has agreed to sell the same under the terms and conditions herein below stated;
NOW, THEREFORE, for and in consideration of the sum of [Total Purchase Price in Words (PHP _)], Philippine currency, paid by the Buyer to the Seller, the receipt whereof is hereby acknowledged, the Seller hereby SELL, TRANSFER, and CONVEY by way of Absolute Sale unto the Buyer, his/her heirs and assigns, the above-described property, free from all liens and encumbrances, subject to the following terms and conditions:
1. Purchase Price and Payment:
The total purchase price is PHP [Total Purchase Price in Figures], payable as follows:
- Down Payment: PHP [Down Payment Amount]
- Balance: PHP [Balance Amount] upon signing this Deed of Absolute Sale.
2. Documentary Stamps and Transfer Taxes:
All documentary stamps, transfer taxes, and other expenses in connection with the transfer of title shall be for the account and expense of the Buyer.
3. Transfer of Title:
The Seller shall execute all documents necessary to effect the transfer of title to the Buyer. The Buyer shall shoulder all expenses related to the transfer of title.
IN WITNESS WHEREOF, the parties have hereunto set their hands this _ day of __, 20_____.
[Seller’s Full Name]
[Buyer’s Full Name]
SIGNED IN THE PRESENCE OF:
[Witness 1’s Full Name]
[Witness 2’s Full Name]
Republic of the Philippines)
City/Municipality of ) S.S.
On this day of _, 20_____, before me, a Notary Public in and for the City/Municipality of __, personally appeared:
[Name of Seller]
[Proof of Identity: ID Type and Number]
[Name of Buyer]
[Proof of Identity: ID Type and Number]
Known to me and to me known to be the same persons who executed the foregoing instrument and they acknowledged to me that the same is their free and voluntary act and deed.
Doc. No. ;
Page No. ;
Book No. ;
Series of 20.
My Commission Expires: __
Please note that this template is a basic example and may not cover all legal requirements specific to your situation. Always consult with a qualified legal professional to ensure that your Deed of Absolute Sale complies with Philippine laws and regulations.