The undertaking is governed by a written Agency Agreement, duly signed between the investor and his/her agent, whereby the latter takes responsibility for buying the property in the investor's name.
The investor funds the acquisition by directly giving the purchase money to his/her agent, who then deals with the sellers or lot owners. Then, the agent tenders the money to the seller while ensuring that all necessary papers are completely signed by the correct signatories.
All documents bear the name of the investor as the buyer. So, in effect, it's like the agent is the investor's representative in buying the property.
This is especially needed in complex transactions wherein a lot of signatories are required as most investors cannot afford to stay long in Palawan to wait for the paper to be signed by all signatories. The sad truth is that some buyers do not want to sign documents without getting paid right away. In this case, the Agency Agreement is very advantageous for the investor.
Below is the SAMPLE Agency Agreement usually used in this undertaking.
AGENCY AGREEMENT
This
contract (herein referred to as "AGENCY
AGREEMENT") was freely and voluntarily made and entered into by and between:
, of legal age, Filipino, married to who is a citizen of the Republic of the
Philippines, with permanent residence address at ,
herein referred to as the "BUYER";
– and –
PALAWANLOTFORSALE.COM, a brokerage
business with principal and registered business address at , represented by its General
Manager / Owner, , herein referred to as the "AGENT".
WITNESSETH:
In
consideration of the mutual agreements hereinafter set forth and the mutual
benefits to be derived therefrom, the BUYER
and the AGENT hereby agree to abide
by, observe and perform the following covenants, terms and conditions:
Section 1.
APPOINTMENT OF THE AGENT
1.1
The BUYER hereby NAME, CONSTITUTE and APPOINT the AGENT to be its true and lawful representative in acquiring the
property (herein referred to as the "PROPERTY")
described below:
A PORTION of a tax declared parcel of land, with
Cadastral Lot Number , CAD – 860 – D, San Vicente
Cadastre, containing an area of approximately ( )
square meters, located in ,
San Vicente, Palawan, with Advance Technical Description herein attached and
marked as "ANNEX – A" to form a significant part of this AGENCY AGREEMENT.
1.2
The said
appointment is hereby accepted by the AGENT
subject to the provisions of this AGENCY
AGREEMENT.
Section 2.
OBLIGATIONS OF THE AGENT
2.1
To exercise best
efforts to:
2.1.1
Have the PROPERTY surveyed, and the technical
description of its boundaries prepared, by a licensed Geodetic Engineer
(surveying cost to be paid by the BUYER);
2.1.2
Acquire the said
PROPERTY, under the name of the BUYER, following hereunder terms of sale:
Partial
Payment (herein referred to as "Down
Payment") of PESOS (PHP )
on the week of ,
2015;
The remaining balance (herein referred to as "Full
Payment") of PESOS (PHP ) on the week of ,
2015;
2.1.3
Exercise DUE
DILIGENCE in paying the registered lot owner, ensuring that the payment money
is given in exchange for the necessary signature/s needed to secure the rights
of the BUYER;
2.1.4
Personally tender
the Payment (wired/deposited by the BUYER
to the bank account of the AGENT) to
the registered lot owner or his/her legal representative.
NOTE:
Under this AGENCY AGREEMENT, Payment
to the SELLER will be coursed
through the bank account of "PALAWANLOTFORSALE.COM" (with Metro Bank Checking Account Number 089 – 10100691 – 6): by the BUYER;
2.1.5
Document the sale
with the registered land owner, or his/her legal representative/s, in favor of
the BUYER, to include but not
limited to securing the signatures and the BUYER'S
copy of the following documents:
2.1.5.1
Contract to
Sell (with as the "buyer" appearing on the said document)
upon giving the Down Payment;
2.1.5.2
Waiver of
Rights (with as the "buyer" appearing on the said document)
upon giving the remaining balance / full payment;
2.1.5.3
Acknowledgement
of Payment (with as the "payor" appearing on the said document)
duly signed by the registered lot owner or his/her legal representative/s;
2.1.6
Personally hand
over to the BUYER the aforementioned
BUYER'S copy of Contract to Sell, Waiver of Rights, and Acknowledgement
of Payment duly signed within one week from the execution of the said
documents;
2.1.7
Register the sale
with the Municipal Assessor's Office and/or the Municipal Assessor's Office;
2.1.8
Tender the
Payment of the BUYER for the
necessary Registration and Transfer Taxes & Fees with the concerned
Government Agencies (Taxes & Fees on the account of the BUYER);
2.1.9
Secure new sets
of the following documents under the name of the BUYER, once all transfer and registration documents were completely
processed by concerned Government Agencies, to wit:
2.1.9.1
Tax Declaration
2.1.9.2
Tax Clearance
2.1.9.3
Barangay Certification
2.1.10
Personally hand
over to the BUYER the aforementioned
new sets of documents, including the blueprint of the approved SUBDIVISION
PLAN, once readily available;
2.1.11
Return to the BUYER, on the week of 2015, the entire amount of money
identified above as "Down Payment"
in case the Contract to Sell lacks
the necessary signature of the registered lot owner or his/her legal
representative/s;
2.1.12
Return to the BUYER, on the week of 2015, the entire amount of money
identified above as "Full Payment"
in case the Waiver of Rights lacks
the necessary signature of the registered lot owner or his/her legal
representative/s;
Section 4.
OBLIGATIONS OF THE BUYER.
4.1
Deposit the
amount of PESOS (PHP ), on the day of 2015, to the account of PALAWANLOTFORSALE.COM (same account number as mentioned
above) to finance the acquisition of the aforementioned PROPERTY, more specifically for use in paying the aforementioned Down Payment;
4.2
Deposit the
amount of PESOS (PHP ), on day of 2015, to the account of PALAWANLOTFORSALE.COM (same account number as mentioned
above) to finance the acquisition of the aforementioned PROPERTY, more specifically for use in paying the aforementioned Full Payment;
4.3
To pay the
necessary taxes, fees, and expenses, including notarial and surveying costs,
necessary to prepare and close the sale, as well as to register the sale and
effect the transfer of ownership from the previous registered owner to the name
of the BUYER.
IN
WITNESS WHEREOF we have hereunto set our hands this ___ day of day 2015 in .
BUYER
PALAWANLOTFORSALE.COM
For:
AGENT
Republic of the Philippines )
Province of _____________)
Municipality of __________)
A C K N O W L E D G E M E N T
BEFORE
ME, this ___ day of 2015 personally appeared the hereunder
individuals/parties, who are not known to me personally but they claim to me
that they are the very same person who executed the foregoing instrument and
acknowledged to me that the same is her own free and voluntary act and deed:
ID Card Issued
By Place
Issued Date
Issued Expiration
The foregoing
instrument refers to the AGENCY AGREEMENT consisting of FIVE (5) pages,
including this page wherein this acknowledgement is written.
WITNESS MY HAND AND
SEAL, this ___ day of 2015 at .
Doc. No. _____;
Page No. _____;
Book No. _____;
Series of 2015.
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