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Notice Of Termination Of Real Estate Contract Template for Philippines

A formal legal notice used in the Philippines to terminate an existing real estate contract, drafted in compliance with Philippine Civil Code and related real estate laws, particularly the Maceda Law (RA 6552) where applicable. This document serves as an official notification of contract termination, specifying the grounds for termination, effective date, and any applicable rights and obligations of the parties involved. It includes essential elements such as contract identification, basis for termination, compliance with legal requirements, and next steps for both parties, ensuring proper documentation of the termination process under Philippine jurisdiction.

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What is a Notice Of Termination Of Real Estate Contract?

The Notice Of Termination Of Real Estate Contract is a crucial legal document used in Philippine real estate transactions when one party needs to formally end a real estate agreement. This document is essential when dealing with property sales, purchases, or leases that need to be terminated due to various reasons such as default in payment, breach of contract terms, or mutual agreement to end the contract. It must comply with Philippine legal requirements, including the Civil Code, Maceda Law (for installment sales), and relevant HLURB guidelines. The notice should be used when there are valid grounds for termination and should include specific details about the property, contract reference, grounds for termination, and any applicable refund or settlement terms. It's particularly important in protecting both parties' rights and ensuring proper documentation of the termination process under Philippine jurisdiction.

What sections should be included in a Notice Of Termination Of Real Estate Contract?

1. Letter Header: Complete contact information of the sender including name, address, and date

2. Recipient Details: Full name and address of the recipient (other party to the contract)

3. Subject Line: Clear indication that this is a Notice of Termination of Real Estate Contract with reference number

4. Contract Identification: Details of the real estate contract being terminated, including date of execution and property description

5. Statement of Termination: Clear and unequivocal statement of intention to terminate the contract

6. Grounds for Termination: Specific legal basis and factual reasons for contract termination

7. Effective Date: Specified date when the termination takes effect, considering any notice periods required by law

8. Legal Compliance Statement: Statement confirming compliance with relevant laws (e.g., Maceda Law if applicable)

9. Next Steps: Clear outline of required actions from both parties

10. Closing and Signature: Formal closing, name and signature of the sending party

What sections are optional to include in a Notice Of Termination Of Real Estate Contract?

1. Refund Details: Include when termination involves refund of payments under Maceda Law or contract terms

2. Property Handover Instructions: Include when the property is already in possession of the buyer

3. Default Notice: Include when termination is due to payment defaults, specifying the amounts and periods of default

4. Remedy Period: Include when offering a final opportunity to cure defaults before termination becomes effective

5. Documentation Requirements: Include when specific documents need to be submitted or executed as part of the termination process

What schedules should be included in a Notice Of Termination Of Real Estate Contract?

1. Payment History Schedule: Detailed record of all payments made under the contract

2. Property Documentation: Copies of relevant property documents and contract

3. Default Notice Records: Copies of previous default notices or relevant correspondence

4. Computation of Refunds: If applicable, detailed calculation of refunds under Maceda Law or contract terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Philippines

Publisher

Genie AI

Cost

Free to use

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