When it comes to investments, real estate often takes the biggest share. Most people, especially young professionals, spend a huge amount of money in buying their own real estate property. Expectedly, you will be dealing with various real estate transactions that will introduce you to various legal documents. In this feature, let SubNet Construction help you familiarize with all these legal documents.
- Letter of Intent/Letter Offer – is the non-binding agreement between two people entering into a real estate transaction. It contains the terms and conditions agreed by the buyer and the seller including the basic details of both parties, description of the property, and financing details. This document can also be in the form of intent to sell, purchase, or negotiate.
- Contract to Sell – is the document containing the terms and conditions of the sale between the seller and buyer. It should specify the financial details such as the amount and the number of installments if the title has a mortgage. Likewise, it should state all the payable taxes for transfer processes.
- Deed of Absolute Sale – is the document made whereby the seller transfers the ownership of the property to the buyer. Filed with the Registry of Deeds, it is the basis for the issuance of the Certificate of Title for the transfer of the real estate property under the name of the new owner. The seller or buyer can prepare this document, but it must be executed before and notarized by a notary public.
- Rent-To-Own Contract – is the agreement established between an owner and a renter planning to buy the property within a specific period of time. It must clearly identify the owner and the renter, information about the property, financial details, and the important dates.
- Property Management Contract – is the agreement intended for real estate owners to accomplish with those who manage their properties for rental purposes. It must include the fees and the services. Both parties should agree to the terms and conditions stated in this contract.
- Contract of Lease – is the document validating the agreement between the owner and the tenant regarding the use of a property for a period of time. It binds both parties to act upon the terms and conditions stated on the contract. It does not provide ownership rights to the lessee. However, during the lease period, the tenant is responsible for the condition of the property.
- Renewal or Extension of Lease Contract – is the document used to certify the agreement between the owner and the tenant regarding the continuous use of a property once the original contract has already ended. If there are adjustments or changes on the previous terms and conditions, it should be stated clearly on this renewal contract.
- Authorization Letter to Move-In – is the letter authorizing the move-in of the new tenant. This is accomplished by the property owner and sent to the condominium’s or village’s administration office for their reference. This notification document is also a form of request asking the admin and their security to extend assistance and courtesy to the new tenant.
- Turn-Over Checklist – is the checklist used during the turnover of any property. It is accomplished by the owner and the buyers or renters to confirm the turn-over of the items inside the house. It also comprises the list of the different areas in the house. A remarks section is provided where both parties can put their comments on.
- Inventory List – is the checklist used to specify the items in the property and its quantity. Before moving in, this checklist should be accomplished to identify during the move-out if there are missing or damaged items.
- Acknowledgement Receipt – is the receipt used to acknowledge the lessee’s payment. It should include the necessary details such as the date, amount, and reason of the payment. Do not forget to indicate who received the payment.
So there you go. We hope this article will help you in your next real estate transaction. Stay tuned for more SubNet Real Estate-tionary articles.
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Source:
– Hoppler. “Real Estate Forms and Legal Documents”. www.hoppler.com.ph. https://drive.google.com/file/d/0B8KQAoFGHdhgZ0RUOTNfOUxTSTA/view (accessed May 18, 2018)