The Buyer's Disclosure Agreement is a crucial document in Philippine real estate transactions, mandated by various laws including the Civil Code of the Philippines and the Real Estate Service Act. This document is utilized whenever a property transaction occurs, requiring sellers to provide comprehensive information about the property's condition, known defects, regulatory compliance, and other material facts that could affect the buyer's decision. The agreement serves as both a legal requirement and a risk management tool, protecting sellers from future claims of non-disclosure while providing buyers with necessary information to make informed decisions. In the Philippine jurisdiction, this disclosure is particularly important due to specific local requirements regarding property transactions and consumer protection laws.
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1. Parties: Identification of the seller and buyer, including complete legal names, addresses, and contact information
2. Background: Context of the transaction and purpose of the disclosure agreement
3. Definitions: Key terms used throughout the agreement, including technical or legal terms specific to real estate and disclosure requirements
4. Property Information: Detailed description of the property, including legal description, location, and type of property
5. Seller's Disclosures: Mandatory disclosures about property condition, known defects, repairs, and material facts affecting value
6. Environmental Matters: Disclosures regarding environmental conditions, hazards, and compliance with environmental regulations
7. Legal Compliance: Statements regarding compliance with zoning laws, building codes, and other regulatory requirements
8. Utilities and Services: Information about available utilities, service providers, and any known issues
9. Financial Disclosures: Information about property taxes, assessments, liens, and other financial obligations
10. Buyer's Acknowledgment: Buyer's confirmation of receipt and understanding of all disclosures
11. Representations and Warranties: Seller's assertions about the truthfulness and completeness of disclosures
12. Governing Law: Specification of Philippine law as governing law and jurisdiction provisions
1. Homeowners Association: Required when property is part of an HOA, detailing rules, fees, and obligations
2. Condominium Disclosures: Required for condominium units, including association rules and common area details
3. Agricultural Land Disclosures: Required for agricultural properties, including water rights and land use restrictions
4. Commercial Property Provisions: Required for commercial properties, including zoning and use restrictions
5. Flood Zone Information: Required for properties in flood-prone areas
6. Historical Property Provisions: Required for properties with historical designation or preservation requirements
7. Construction History: Optional section for properties with significant renovations or construction history
1. Schedule A - Property Details: Detailed property specifications, including lot size, floor plans, and boundaries
2. Schedule B - Known Defects: Itemized list of known defects, repairs, and maintenance issues
3. Schedule C - Environmental Reports: Copies or summaries of environmental assessments or reports
4. Schedule D - Property Documents: List of property-related documents provided to buyer
5. Schedule E - Permits and Certificates: Copies of relevant permits, certificates of occupancy, and compliance documents
6. Appendix 1 - Photograph Index: Dated photographs of property conditions and disclosed defects
7. Appendix 2 - Property History: Chronological record of property ownership and major events
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