As Is Where Is Basis Deed Of Sale Template for the Philippines
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What is a As Is Where Is Basis Deed Of Sale?
The As Is Where Is Basis Deed of Sale is a specialized property transfer document used in the Philippines when selling property without standard warranties or representations regarding its condition. This document type is particularly useful for transactions involving foreclosed properties, distressed assets, or situations where the seller wishes to limit their liability for the property's condition. It's commonly used by banks disposing of acquired assets, companies selling surplus properties, or individuals seeking quick property disposals. The deed must comply with Philippine property laws and Civil Code requirements while explicitly stating the 'as is where is' nature of the sale. It includes detailed property descriptions, clear acknowledgments from the buyer regarding the property's condition, and limited warranties from the seller primarily concerning title and ownership rights. This document type is especially relevant in the current Philippine real estate market where rapid property transactions and risk management are increasingly important.
Frequently Asked Questions
Is an As Is Where Is Basis Deed of Sale legally binding in the Philippines?
Yes, an As Is Where Is Basis Deed of Sale is legally binding in the Philippines under the Civil Code (Republic Act No. 386), specifically Articles 1458-1637 on Sales. The document must meet essential requirements including proper identification of parties, property description, consideration, and signatures to be valid. It provides legal protection for sellers by limiting their liability for property defects or undisclosed issues.
Can I transfer property without an As Is Where Is Deed of Sale in the Philippines?
No, you cannot legally transfer real property ownership in the Philippines without a proper deed of sale. The Civil Code requires a written contract for property sales, and the As Is Where Is version specifically protects sellers from warranty claims. Missing or incomplete documentation can result in invalid transfers, tax penalties, and registration issues with the Registry of Deeds.
How does an As Is Where Is Deed differ from a regular Deed of Sale in the Philippines?
An As Is Where Is Deed of Sale explicitly disclaims seller warranties about property condition, while a regular deed typically includes implied warranties under the Civil Code. The As Is version protects sellers from future claims about defects, liens, or property issues. Regular deeds may hold sellers liable for hidden defects or title problems discovered after the sale.
How long does it take to create an As Is Where Is Deed of Sale in the Philippines?
Creating an As Is Where Is Deed of Sale typically takes 1-3 days for document preparation, plus additional time for notarization and registration. Simple transactions with clear property titles can be completed faster, while complex properties may require additional due diligence. The entire process including Registry of Deeds registration usually takes 1-2 weeks.
Does an As Is Where Is Deed need to be notarized in the Philippines?
Yes, an As Is Where Is Deed of Sale must be notarized in the Philippines to be valid for property registration. Under Philippine law, real property transfers require notarization to be accepted by the Registry of Deeds. The notarized document becomes a public instrument with enhanced legal weight and is necessary for updating the property title.
Can buyers still claim damages after signing an As Is Where Is Deed in the Philippines?
Generally, buyers have limited recourse after signing an As Is Where Is Deed of Sale in the Philippines, as this document specifically disclaims seller warranties. However, buyers may still claim damages for fraudulent misrepresentation or concealed material defects that were deliberately hidden. The Civil Code's provisions on fraud and bad faith cannot be completely waived even with 'as is' clauses.
Why do sellers choose As Is Where Is Deeds instead of regular property sales contracts in the Philippines?
Sellers choose As Is Where Is Deeds to limit their liability for property defects, title issues, or undisclosed problems they may not be aware of. This is common for inherited properties, foreclosed assets, or properties with uncertain histories. It provides legal protection under the Civil Code while still allowing valid property transfers, though buyers typically pay lower prices due to increased risk.
About the As Is Where Is Basis Deed Of Sale
An As Is Where Is Basis Deed of Sale is a critical legal document that protects sellers when transferring real property in the Philippines without providing standard warranties about the property's condition. This specialized deed allows you to convey ownership while explicitly limiting your liability for any defects, encumbrances, or issues that may exist with the property at the time of sale.
When do you need this document?
You'll need this deed when selling property where comprehensive warranties aren't practical or desired. Banks frequently use this document when disposing of foreclosed properties acquired through mortgage defaults. Real estate investors rely on it for quick property flips where extensive due diligence isn't economically viable. Companies liquidating surplus assets use this deed to expedite sales while minimizing legal exposure. Individual sellers benefit from it when selling inherited properties where the full condition and history may be unknown, or when time constraints prevent thorough property inspections and repairs.
Key legal considerations
The "as is where is" clause significantly limits the seller's obligations but doesn't eliminate all responsibilities. You must still provide clear title and disclose any known material defects that could affect the buyer's decision. The deed should include comprehensive property descriptions, explicit acknowledgment from the buyer about the property's condition, and clear statements about which warranties are excluded. Buyers assume substantial risk and should conduct independent inspections before signing. The document must clearly define what "as is" means in your specific transaction, including any exceptions or limited warranties you're willing to provide. Consider including clauses about environmental conditions, structural integrity, and compliance with local building codes.
Legal requirements in Philippines
Philippine law requires this deed to comply with the Civil Code's provisions on sales contracts, particularly Articles 1458-1637. The document must be notarized to be valid and enforceable, requiring the presence of qualified witnesses during execution. Property Registration Decree (PD 1529) governs the transfer process, mandating proper documentation for title registration with the Registry of Deeds. You must ensure the deed includes all required elements: parties' complete details and legal capacity, accurate property description with technical details, consideration amount, and clear transfer of ownership rights. Tax obligations under the National Internal Revenue Code must be satisfied, including documentary stamp tax, capital gains tax, and transfer tax. The Consumer Act may still apply despite "as is" provisions, particularly regarding gross misrepresentation. Local government requirements for property transfers, including clearances and permits, must be satisfied before completing the transaction.
GOVERNING LAW
Applicable law
This As Is Where Is Basis Deed Of Sale is drafted to comply with Philippines law. Key legislation includes:
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