What Should Be in a Contract to Sell for Property?
Quick answer: A property Contract to Sell should clearly identify the parties and property, state the price and payment schedule, define when ownership will be transferred, explain default and cancellation rules, allocate taxes and expenses, and list what each side must deliver before the Deed of Absolute Sale is executed.
Core clauses to review
- Complete names, addresses, and authority of the parties
- Exact property description and title reference
- Total price, reservation fee, down payment, and installment schedule
- Whether full payment is a suspensive condition to transfer of ownership
- Interest, penalties, and late-payment rules
- Notice and cure periods
- Cancellation and refund or forfeiture rules
- Possession and turnover date
- Taxes, transfer expenses, association dues, and registration costs
- Conditions for execution of the Deed of Absolute Sale
- Seller warranties on title, liens, taxes, and authority
- Dispute-resolution and venue provisions
Why the ownership clause matters
A contract to sell is not automatically the same as a perfected contract of sale. The exact wording determines whether ownership is reserved until a condition such as full payment occurs. See Contract of Sale vs Contract to Sell.
Installment buyers need extra checks
If the property is being paid by installment, determine whether RA 6552 or the Maceda Law applies. If the seller is a subdivision or condominium developer, PD 957 may also be relevant.
Related guides
See When Can a Contract to Sell Be Cancelled?, Documents to Check Before Paying, and the Sales and Buyer–Seller Remedies hub.
Primary legal framework
Civil Code of the Philippines; Republic Act No. 6552 where applicable; Presidential Decree No. 957 for covered subdivision and condominium transactions.