Are you planning on purchasing a property in the Philippines but don`t know where to start? An important step in the buying process is signing an earnest money agreement, which serves as a formal document indicating your commitment to purchasing the property.

An earnest money agreement, also known as a deposit agreement, is a legal contract between a buyer and seller that outlines the terms of the buyer`s deposit to secure the purchase of a property. This document helps protect both parties in the transaction by setting clear expectations and ensuring that the buyer is serious about purchasing the property.

To help you get started, we have provided a sample earnest money agreement specific to the Philippines:

[Insert Buyer`s Name]

[Insert Seller`s Name]

This agreement is made on [insert date] between [Insert Buyer`s Name] (herein referred to as the “Buyer”) and [Insert Seller`s Name] (herein referred to as the “Seller”) for the property located at [Insert Address of Property] (the “Property”).

1. Deposit Amount

The Buyer agrees to pay a deposit of [Insert Deposit Amount in Numbers and Words] (the “Deposit”) to the Seller as part of this agreement. The Deposit shall be paid on or before [Insert Date of Payment], and shall be held in trust by the Seller`s broker.

2. Purchase Price

The Buyer agrees to purchase the Property for a total purchase price of [Insert Purchase Price in Numbers and Words] (the “Purchase Price”). The Purchase Price shall be paid in full by [Insert Date of Payment], subject to the terms and conditions of this agreement.

3. Terms and Conditions

The terms and conditions of the Seller`s listing agreement, the Purchase Agreement, and any other agreements related to this transaction shall be incorporated into this agreement by reference.

4. Default

In the event of default by the Buyer, the Deposit shall be forfeited to the Seller as liquidated damages, and the Seller shall have the right to retain the Deposit as compensation for any damages or expenses incurred as a result of the default.

5. Closing Date

The closing date for this transaction shall be [Insert Closing Date]. The Seller agrees to deliver the property to the Buyer free and clear of all liens, encumbrances, and defects in title on or before the closing date.

6. Miscellaneous

a. This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between them, whether written or oral.

b. This agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, and assigns.

c. This agreement shall be governed by and construed in accordance with the laws of the Republic of the Philippines.

[Insert Buyer`s Signature]

[Insert Seller`s Signature]

By signing this agreement, the Buyer acknowledges their obligation to purchase the Property and agrees to the terms and conditions outlined in the agreement. The Seller, in turn, agrees to hold the Deposit in trust and deliver the Property to the Buyer on the agreed-upon closing date.

In conclusion, an earnest money agreement is an essential document in the real estate buying process. It helps establish trust between the buyer and seller and protects both parties` interests. We hope this sample agreement will help you get started on your journey to purchasing a property in the Philippines.