A Contract to Sell is a contract between a seller and a buyer. The contract states that the seller promises to sell something to the buyer and that the buyer also promises to buy the property from the seller.

However, even after signing the contract, the buyer does not immediately acquire the right. There are still conditions that must be met by one or both parties before ownership can be transferred.

The Deed of Absolute Sale will be actualized only after the conditions specified in the Contract to Sell have been met.

Contract

Signing-of-Contract-to-Sell
Signing-of-Contract-to-Sell

Contract to sell

Before signing a Contract to Sell, you should consider some important things: The contract must specify all the details about the sale. You should read it carefully and understand its provisions. You can also read The Ultimate Guide to Real Estate Investing to get more guides before signing a contract.

If there are any points that you don’t understand or have questions about, you should ask the seller’s agent for clarification.

If you are buying a home, you must also consider the following:
1. The General Terms and Conditions
2. Total Contract Price and Payment Terms
3. Indivisibility of Payments
4. Application of Payment
5. Placement of payment/payment to brokers
6. Surcharge for late payments
7. Possession of unit and renovations
8. Notice of Turnover of the Unit
9. Inspection and work on the unit by the seller
10. Taxes, assessments, and expenses
11. Deed of Absolute Sale and Transfer of Title
12. Cancellation of Contract due to non-payment
13. Assignment of Rights and Warranties
14. Warranties
15. Indemnity and Attorneys Fee
16. And other clauses depend on the developer or owners.

These can be substantial, so it is important that you know what they are before you sign the contract

Some Credible Projects in Cebu with Contract to Sell

Aside from reviewing the contract to sell, you should conduct research on credible Cebu real estate developer and their developments. One of the credible projects for a house and lot is The Emerald and the Murano House in Camella Riverdale in Talamban Cebu.

If you want to be right in Cebu City but are working on a budget you might want to consider a condominium like the Grand Residences located at Pres. Roxas St, Cebu City which is just a walking distance to I.T Park, Ayala Business Park, and many other Establishments.

Sample Contract to sell

Name of the Developer/Owner

CONTRACT TO SELL
KNOW ALL MEN BY THESE PRESENTS:
This Contract to Sell (this “Contract”), made and entered into on ______ at __ City by and between:

Name of the Developer/Owner., a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with office address at Address, represented herein by Name of Representative, duly authorized for the purpose, and hereinafter referred to as the “SELLER”,

and –
____________________________________________________________ (T.I.N. ______-000), _, and, and of legal age, with postal address at _______________________________________________, and hereinafter referred to as the “BUYER”.

View the full Sample Contract to sell here