Art of Reconveyances

THE ART OF DRAFTING REAL ESTATE CONVEYANCES DOCUMENTS

Atty. Analyn Marcelo-Buan Real Estate Broker

Drafting legal documents is an art .

The following should be achieved: Knowledge of the statutory provisions governing

the particular kind of transaction on hand; Brief; Clear; and Accurate

Cardinal rules in drafting conveyance documents

A. The beginning/commencement of the contract should state the particular kind of contract or agreement to be drafted as. This Mortgage, This Contract of Sale. B. The full names of parties (not abbreviated), their capacity, civil status, citizenship, and their residences, should come next. A logical order in which parties are to be named in the document must be observed. Thus, in a deed of conveyance, the name of the seller, the mortgagor, or grantor must first be stated


c. Verbosity should be avoided d. Specific or technical terms, which have special meanings in the document should be specially defined. e. Names of the parties should be repeated, where the use of pronounces would give to ambiguity


f. The document must be neat, free from erasures, interlineations or suspicions of alterations. g. A clause may be inserted at the end of an agreement that this contract shall extend and be binding upon the parties thereto, their executors, administrators and assigns.


h. The place and date of execution of the document usually come last, and stated thus Signed in the City of Manila, Philippines, this _______ day of _________, 2014. Note that any instrument notarized by a notary public

or a competent public official with the solemnities required by law, is a public instrument.

FORMS AND SIZE

All unprinted documents presented to the superior court of the Philippines shall be written on paper of good quality, 12-3/8 inches in length by 8-1/2 inches in width, leaving a margin at the top and at the left hand side not less than 1-1/2 inches in width. A reasonable margin at the right-hand side must be observed.

NOTARIAL LAW 2004 Rules on Notarial Practice

IMPORTANT DEFINITIONS TO UNDERSTAND

1. Acknowledgment. "Acknowledgment" refers to an act in which an individual on a single occasion: (a) appears in person before the notary public and presents an integrally complete instrument or document; (b) is attested to be personally known to the notary public or identified by the notary public through competent evidence of identity as defined by these Rules; and



1. Acknowledgment. (c) represents to the notary public that the signature on the instrument or document was voluntarily affixed by him for the purposes stated in the instrument or document, declares that he has executed the instrument or document as his free and voluntary act and deed, and, if he acts in a particular representative capacity, that he has the authority to sign in that capacity.



2. Affirmation or Oath. The term "Affirmation" or "Oath" refers to an act in which an individual on a single occasion: (a) appears in person before the notary public; (b) is personally known to the notary public or identified by the notary public through competent evidence of identity as defined by these Rules; and (c) avows under penalty of law to the whole truth of the contents of the instrument or document



3. Jurat. "Jurat" refers to an act in which an individual on a single occasion: (a) appears in person before the notary public and presents an instrument or document; (b) is personally known to the notary public or identified by the notary public through competent evidence of identity as defined by these Rules;



3. Jurat. (c) signs the instrument or document in the presence of the notary; and (d) takes an oath or affirmation before the notary public as to such instrument or document.



4. Notarial Act and Notarization. "Notarial Act" and "Notarization" refer to any act that a notary public is empowered to perform under these Rules. 5. Notarial Certificate. "Notarial Certificate" refers to the part of, or attachment to, a notarized instrument or document that is completed by the notary public, bears the notary's signature and seal, and states the facts attested to by the notary public in a particular notarization as provided for by the Rules.



6. Notary Public and Notary. - "Notary Public" and "Notary" refer to any person commissioned to perform official acts under these Rules. 7. Principal. - "Principal" refers to a person appearing before the notary public whose act is the subject of notarization



8. Competent Evidence of Identity. - The phrase "competent evidence of identity" refers to the identification of an individual based on: (a) at least one current identification document issued by an

official agency bearing the photograph and signature of the individual

(b) the oath or affirmation of one credible witness not privy to the instrument, document or transaction who is personally known to the notary public and who personally knows the individual, or of two credible witnesses neither of whom is privy to the instrument, document or transaction who each personally knows the individual and shows to the notary public documentary identification.



1. When the instrument or document is a contract, the notary public shall keep an original copy thereof as part of his records and enter in said records a brief description of the substance thereof and shall give to each entry a consecutive number, beginning with number one in each calendar year. He shall also retain a duplicate original copy for the Clerk of Court.


Things to know:

2. A notary public is authorized to sign on behalf of a person who is physically unable to sign or make a mark on an instrument or document if: (a) the notary public is directed by the person unable to sign or make a mark to sign on his behalf; (b) the signature of the notary public is affixed in the presence of two disinterested and unaffected witnesses to the instrument or document; (c) both witnesses sign their own names ; (d) the notary public writes below his signature: "Signature affixed by notary in presence of (names and addresses of person and two 2 witnesses)"; and (e) the notary publ ic notar izes h is s ignature by acknowledgment or jurat.


Things to know:

3. A notary public shall not perform a notarial act outside his regular place of work or business; provided, however, that on certain exceptional occasions or situations, a notarial act may be performed at the request of the parties in the following sites located within his territorial jurisdiction; 4. A notary public is disqualified from performing a notarial act if he is a spouse, common-law partner, ancestor, descendant, or relative by affinity or consanguinity of the principal within the fourth civil degree


Things to know:

a) If a buyer is a Filipino citizen married to a foreigner the foreigner/spouse must execute and deliver an affidavit stating that the funds used for the purchase of the property are the paraphernal funds of the Filipino spouse. If seller is a Filipino married to a foreigner and property is titled in the name of Filipino spouse, consent of the foreign spouse is needed for the sale unless there is proof that the property is an exclusive property of the Filipino spouse (waiver of foreign spouse or document showing the paraphernal nature of the property);

SPECIAL DOCUMENTARY REQUIREMENTS TO SUPPORT CONVEYANCES DOCUMENTS aside from the usual OCT/TCT, tax declaration, tax clearance

A. For Deed of Sale or Contract to Sell Individual/s

b) If buyer is a natural-born Filipino who has lost his/her Philippine citizenship, he/she must execute and deliver an affidavit showing the date and place of his/her birth, the names and addresses of his/her parents, the date he/she lost his/her Philippine citizenship, the country of which he is presently a citizen, his/her parents, the date he/she lost his/her Philippine citizenship, the country of which he is presently a citizen, his/her spouse and children, if any, the area, the location and the mode of acquisition of his/her landholdings in the Philippines, if any, and his/her intention to reside permanently in the Philippines. The affidavit shall be signed and shall be notarized. If accomplished abroad, the affidavit must be notarized and authenticated before the consular office of the Philippines in the said country (*red ribbon);



c. If the married buyer is legally separated, or his/her marriage has been annulled or declared null and void, he/she needs to submit certified true copy of the decision with a Certificate of Finality attached to it. If it is the seller who is legally separated, or his/her marriage has been annulled or declared null and void and the subject property is awarded to the seller, and consent of the other spouse cannot be secured then there is a need for a certified true copy of the decision with a Certificate of Finality attached to it;



d) If the married buyer wants to indicate that there is a separation of properties between himself/herself and his/her spouse, he/she must have a certified true copy of the decision and a certificate of finality issued by the court. This is also what you will require is the seller is married but claims the existence of regime of separation of properties



e) If the property is purchased by a minor, the parent/guardian must have a certified true copy of the decision/order of the court approving the application/petition for guardianship including the approval of the posting of bond required under Article 225 of the Family Code with attached Certificate of finality issued by the same court. If the seller is the minor then there is a need for certified true copy of the decision approving the sale/conveyance with a Certificate of Finality attached to it.



f) If the buyer is transacting through an attorney-in-fact, the buyer must execute a Special Power of Attorney (SPA) bearing the signature of the buyer, the specimen signature of the Attorney-in-Fact, and the latters authority to transact for and in behalf of the buyer. If the buyer is unable to personally obtain the certificate of title, the SPA shall include the authority of the attorney-in-fact, and the latters authority to transact for and in behalf of the buyer. If the buyer is unable to personally obtain the certificate of title, the SPA shall be signed by all the buyers (if more than one). An SPA is also needed if seller is transacting through another.



g) If the seller is already dead, there is a need for the extrajudicial settlement of estate with a notice informing the public of the settlement published once a week for 3 consecutive weeks. In case of judicial settlement, a certified true copy of the court order with certificate of finality



u Certificate of Registration u Articles of Incorporation/Partnership/Association u By-Laws as registered with the Securities and Exchange Commission/

Cooperative Development Authority/Housing Land Use and Regulatory Board u Secretarys Certificate, attesting under oath that a valid resolution of the

Board of Directors/Trustees/ Governors authorizing the purchase/sale/conveyance of the property and its terms designating and appointing the official authorized to negotiate, transact and sign documents on behalf of the corporation

u For purchase of land, copy of certification under oath by the Corporate Secretary/Treasurer of the corporation to the effect that 60% or more of the outstanding capital stock of the corporation is owned by Filipinos

u For purchase of condominium units, notarized certification under oath by the Corporate Secretary of the corporation as to the nationality of its stockholders


B. For Deed of Sale or Contract to Sell Corporation/Partnership/Association/Cooperative


C. Documentary requirements are mostly similar for mortgage contracts, and Deed of Donation except that in deed of donation acceptance of the donation must appear in a written document.

KNOWN ALL MEN BY THESE PRESENTS: This Contract to BUY and SELL made and executed by and between: ___________________, of legal age, married to ____________________, and resident of ________________________ hereinafter called the VENDOR: - and - __________________, of legal age, married to _____________________, and resident of _____________________ hereinafter called the VENDEE:

WITHNESSETH:

WHEREAS the VENDOR is the owner of a residential house and lot located in _____________________, covered by TCT No. ______________ and more particularly described as follows:

Sample Documents: CONTRACT TO BUY AND SELL

A parcel of land _________________________________________________________________ _________________________________________________________________ WHEREAS the VENDOR has agreed to SELL the above-described residential lot to the VENDEE, and the VENDEE agreed, as it is hereby agreed, to BUY the said house and lot: NOW, THEREFORE, FOR AND IN CONSIDERATION of the foregoing premises and of the following mutual covenants, undertaking, obligations, terms and conditions, the parties hereto have agreed, as follows: 1. PURCHASE PRICE- The VENDEE agrees to pay the amount of _______________________, which shall be paid upon the release of Vendees loan from PAG-IBIG/NHMFC or any financial institution. The Vendee is given a period of ___ months from the signing contract to pay in FULL the said purchase price.


2. TAXES- The ______ shall pay the capital gain tax and shall pay and update the realty taxes while all other taxes related to the transfer of the title shall be for the account of the ____________________; 3. TRANSFER OF TITLE- A Deed of Absolute Sale to effect the conveyance and the Transfer of Title of the property shall be executed as soon as the FULL PAYMENT is paid under this contract. IN WITNESS, WHEREOF, the PARTIES have hereunto affixed their signatures on this _____th day of ______________ at ________________. _______________________ _________________________

VENDOR VENDEE With my marital consent: With my marital consent: _________________________ _________________________

WITNESSES: ______________________ _____________________


A C K N O W L E D G M E N T

Before me, a Notary public for ________________________ and the Province of ______________, personally appeared the following with their CTC: _____________________________

_______________ _____________________ _____________________________ _______________ ______________________ both known to me and to me known to be the same persons who executed the foregoing CONTRACT TO BUY AND SELL, the property covered under TCT NO. _______________ located in _________________, and they acknowledged to me that the same was executed by them freely and voluntarily. Based on the documents presented, the PARTIES are _________ citizens. This instrument consists of _________________ pages including this page on acknowledgment.

WITNESS MY HAND AND SEAL on the day and place above written. Doc. No. _______ Page No. ________

Book No. _______ Series of 20___:


Notary Public Appointment No. __ (20__ - 20__) Until December 31, 20___ PTR No. ____________ / __-__-__ Roll No. ________ IBP Lifetime Member No. ____ / ____ MCLE Comp. Cert. No. _______/____

Know All Men By These Presents: This deed of Absolute Sale is made and entered into by the following parties. MISS _____________, of legal age, single, Filipino citizen and with resident address at ______________, _(town)__, _(province)_, hereinafter referred to as the VENDOR;

- and SPS. _________________ and ________________, of legal age, Filipino citizen and with resident address at _____________, __(town)__, __(province)__ hereinafter referred to as the BUYER.

-WITNESSETH-

WHEREAS, the VENDOR is the lawful and legitimate owner of a parcel of

land situated in _________________, __(town)__, __(province)__, containing an area of ____________________ square meters and more particularly describe as follows:

Sample Documents: DEED OF ABSOLUTE SALE

Property Descriptions

Transfer Certificate of Title No. __________

Location : ______________________________ Lot Area : ______________________________ square meters Lot No. : ______________________________ Boundaries

North : ___________________________ East : ___________________________ West : ___________________________ South : ___________________________

WHEREAS, the VENDOR intends to sell the area of _____________________

square meters which being a portion of the Lot No. _______ while the BUYER intend to buy the aforesaid portion of the parcel of land.


THAT FOR AND IN CONSIDERATION in the sum of _______(amount)_______ Pesos Only (Php________), Philippine currency to me in hand paid by and receipt whereof I hereby acknowledged and confessed to my full and complete satisfactory upon the execution of this deed in favor of SPS. BILLY CO YAN and BETH KHO YAN, legal age, Filipino and resident of _____________ _(town)_, _(province)_ I, (name of vendor), sell, convey and transfer and by this presents has hereby SOLD, TRANSFERRED and CONVEY the above-mentioned portion of a parcel of land unto the said SPS. BILLY CO YAN and BETH KHO YAN, their heirs, assigns, executors or administrators, free from all liens and encumbrances of whatever nature and kind.

IN WITNESS WHEREOF, the parties hereunto affixed their signatures today _______________ here at ________________

______________________ VENDOR

__________________ ________________ BUYER BUYER

Signed in the Presence of:

______________________________ __________________________


ACKNOWLEDGEMENT Republic of the Philippines ) _____________City/Province___ ) S.S. BEFORE ME, a Notary Public, on this __(date)__ for the Province of ________________, Philippines, personally appeared _____________________ and SPS. _________________ and _________________, who acknowledged to me the authenticity and due execution of the foregoing document and who avow under the PENALTY OF LAW, to truth of the contents of the foregoing document and further acknowledged to me that the same is their free act and voluntary deed.


I hereby certify the affiant have been identify by the undersigned Notary Public through Competent Evidence of Identity as follows:

Name Competent Evidence of Identity _____________________________ _____________________________________ _____________________________ _____________________________________ _____________________________ _____________________________________ which bears their picture and signature and basing on the same, their picture appearing thereon is one and the same signature on this document. WITNESS MY HAND SEAL. Doc. No. _____

Page No. _____ Book No. _____ Series of 20____.


Notary Public

Commission Serial No. ______________

Notary Public for (Province/City)

Un

KNOW ALL MEN BY THESE PRESENTS: I, [Mr]/[Mrs]/[Miss]_____________________, of legal age, Filipino, [single]/[married] and a resident of _________________________________________, Philippines, do h e r e b y n a m e , c o n s t i t u t e a n d a p p o i n t [ M r ] / [ M r s ] /[Miss]____________________________, of legal age, Filipino, [single]/[married] and a resident of ______________________________________, Philippines be my true and lawful attorney in-fact to act, for and in my stead, to do and perform the following acts deeds and things, to wit: 1. To sell, assign and dispose of a parcel of land covered by TCT No. _____________________________________ , situated at _______________________ including the improvements thereon under such terms and conditions acceptable to my Attorney-in-Fact; 2. To sign, execute and deliver the necessary Deed of Sale covering such sale including any and all documents that may be necessary or required thereto and to deliver possession of the property to said Vendee;

Sample Documents: SPECIAL POWER OF ATTORNEY (To Sell Parcel of Land)

3. To receive the proceeds of the sale, either in cash or in check and to pay expenses for capital gains, real property tax and any and all such expenses that may be agreed upon between the Vendee; 4. To do such any other act or thing that may be required necessary or incidental to carry out effectively any and all of the purposes for which this authority is hereby given;

HEREBY GIVING AND GRANTING unto my said attorney-in-fact full power and authority to do and perform any and every act, and thing whatsoever requisite and necessary to be done in and about the premises, as fully to all intents and purposes as I might or could lawfully do if personally present and hereby ratifying and confirming all that my said attorney-in-fact shall lawfully do or cause to be done by virtue of these presents.


IN WITNESS WHEREOF, I have hereunto set my hand this _______________ at __________________________, Philippines .

_______________________ Principal

SIGNED IN THE PRESENCE OF :

___________________ and ________________


MODEL 1 - Affiant Has At Least One Current ID Card Issued By An Official Agency Bearing The Photograph And Signature Of The Individual

A C K N O W L E D G M E N T SUBSCRIBED AND SWORN TO BEFORE ME, a notary public in and for _________(City/Province)____________ this ____th day of ____________ 20___. Affiant personally came and appeared with _____________(Competent Evidence of Identity)______ issued by the _________(Government Agency)______ on ___(date)__ at ________(place)_________, bearing his photograph and signature, known to me as the same person who personally signed the foregoing instrument before me and avowed under penalty of law to the whole truth of the contents of said instrument. Doc. No. _____ Page No. ____ Book No. _____ Series of 20___.


Notary Public



Un

MODEL 2 - The Oath Or Confirmation Of One Credible Witness + [ Not A Party To The Document ] + [ Who Is Personally Known To The Notary Public ]

+ [ And Who Personally Knows The Party Executing The Document] SUBSCRIBED AND SWORN TO BEFORE ME, personally came and appeared with ____(Competent Evidence of Identity)___ issued by the __(Government Agency)__ on ___(date)__ at __(place)__, and in the company of one Mr/Mrs/Miss_____________ who has affirmed on oath the identity of the said Mr/Mrs/Miss _______________ and who is personally known to the undersigned Notary Public, not interested as a party to the foregoing instrument, and who acknowledged before me that the instrument is his free and voluntary act and deed.

Doc. No. _____ Page No. ____ Book No. _____ Series of 20___.


Notary Public



Un

MODEL 3 - Party Not Known To Notary Public | But Presents Two Credible Witnesses + [ Neither Of Whom Is A Party To The Instrument Or Document ] + [ Who Each Personally Knows The Individual ] + [ And Shows To The Notary Public Competent Evidence Of Identity ] Before me, a Notary Public for and in the Province of ______, on this ___th day of _____ 20__, came and appeared Mr/Mrs/Miss________________ with two witnesses neither of whom is a party to the document who personally know the principal _____________ and who presented Competent Evidence of Identity as follows: ___________________ with ___(Competent Evidence of Identity)__ issued by the _(Government Agency)_ on _(date)_ at __(place)__, bearing also his photograph and signature. ___________________ with ___(Competent Evidence of Identity)__ issued by the _(Government Agency)_ on _(date)_ at __(place)__, bearing also his photograph and signature. Said Mr/Mrs/Miss _______________ personally signed the foregoing instrument before me and avowed under penalty of law to the whole truth of the contents of said instrument. Doc. No. _____ Page No. ____ Book No. ____ Series of 20___.

Notary Public



Un

KNOWN ALL MEN BY THESE PRESENTS: This CONTRACT, made and entered into by and between: - ____________________, of legal age, Filipino, legally separated, with residence and postal address at No. ___ ______________(street)_______________, Cubao, Quezon City, and hereinafter referred to as the LESSOR;

- and - ____________________, of legal age, Filipino, married, with residence and postal address at Agoo, La Union, and hereinafter referred to as the LESSEE;

W I T N E S S E T H That, the LESSOR sub-leases a certain office table and space or portion of an office of an off ice space, otherwise known as Unit 5-D _________ Apartment, No.___ ______________________, Cubao, Quezon City, in favor of the LESSEE, for office use and/or purposes only, within a period of one(1) year, commencing on ____(date)____, for and in consideration of the monthly rental in the amount of Three Thousand Five Hundred (Php 3,500.00) Pesos, Philippine Currency;

Sample Documents: CONTRACT OF LEASE (SUB-LEASE OFFICE SPACE)

That, the said monthly rental shall be paid on or before the 5th day of each month, beginning June 2002; and, upon signing and execution of this contract, the LESSEE shall satisfactorily pay unto and in favor of the LESSOR the sum equivalent to two (2) months rental, as deposit, and the aforesaid provided monthly rental; That, it is further agreed that the said deposit may only be applied and/or used for the remaining two(2) months of this lease contract; and, as the case may be, this contract may be renewed upon and by the mutual consent of the parties whereof; DONE, on this 29th day of May, 2002, at Quezon City.

________________ ________________ LESSOR LESSEE

Signed in the Presence of:

______________________ ______________________ Witness No.1 Witness No. 2

A C K N O W L E D G E M E N T

Sample Documents: CONTRACT OF LEASE (SUB-LEASE OFFICE SPACE)

AUTHORITY TO SELL

To whom it may concern; This is to authorize ____________________________ to SELL, LEASE, MANAGE or NEGOTIATE JOINT VENTURE agreement over the property described hereunder on the following terms and conditions: Transaction: Sale ( ) Lease ( )

Joint Venture ( ) Property Management ( ) Others ( ) ____________________________ Property: ( ) House & Lot ( ) Vacant Lot ( ) Condominium ( ) Others: ______________________________________ Location: _______________________________________________________ Area: Lot Area ___________ sqm. Floor Area ___________sqm.

Description: (Type of Lot or Building; No. of Bedrooms; No. of Toilet and Bath etc.) __________________________________________________________________________________________________________________________________ _________________________________________________________________ Selling Price: P___________________________________________________ Acceptable Term _______________________________________________ _________________________________________________________________ Professional Fee : _______________% of the Total Selling Price (TSP) or mutually agreed TSP Effectivity: _________months Extension Period ______________________________________________

NOTE: I/We hereby furnished you the following documents: ( ) Xerox copy of TCT/CCT ( ) Xerox copy of Tax Declaration ( ) Xerox copy of Valid ID ( ) Lot Plan ( ) Vicinity Map ( ) Others: ____________________________________________ This is to authorize also __________________________ to request and secure the subject property(ies) TCT, CCT and its corresponding tax payments/receipts, tax declaration and other documents that maybe necessary in doing due diligence report on the above mentioned property.

It is understood that the seller is agreeable to allow the herein indicated Real Estate Broker to place billboard and signage to the property to enable the interested prospective buyer(s) to accurately pinpoint the subject property for SALE, LEASE, PROPERTY MANAGEMENT or JOINT VENTURE.

By: ____________________________ Sellers Name ____________________________ Spouse Name & Signature Address: ____________________ _____________________________ _____________________________

Real Estate Broker : ____________________________ License No. : ____________________________ Contact No. : ____________________________ Email Address : ____________________________ NOTE: I/We, am/are amenable to give you the stipulated commission over buyer/buyers whom you have officially registered with me/us 180 days from the lapsed of the original contract of sales agency.

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