RESERVATION AGREEMENT

 

 

                                                 

Sir/Ma’am:

 

I hereby reserve for a purchase of a parcel of land at _____________________ located at ____________, Davao City, Philippines with the following specifications and payment terms:

 

 

Blk. No.

Lot

No.

Lot Area

Price per

Sq. Meter

Contract

Price

Down

Payment

Discount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Please check the appropriate box)

 

 

o          SPOT CASH – in 30days

 

The total amount of ___________________________________________________

(P__________________) which is net of the Reservation Fee is payable within Thirty (30) days upon the date of reservation. 

 

 

o          DEFERRED CASH – 3 months with discount of __________________________________

 

The total amount of ___________________________________________________

(P__________________) which is net of the Reservation Fee and Discount is payable in three (3) equal monthly installments, with each installment amounting to _______________________________________________________________ (P__________________) to commence 30 days after date of reservation.

 

 

o          IN-HOUSE FINANCING

 

The total downpayment is 20% of the Contract Price, payable as follows:

 

a.)          At least P_________________  as initial DP payable upon date of reservation.

 

b.)          Balance of _______________________________________________________________ (P__________________) payable in twelve (12) equal monthly installments 30 days from date of reservation.

 

Balance after downpayment is payable within a period of ____ months at an interest rate of _____% per annum to commence on ______________________ .  The monthly payments shall be equivalent to _________________________________________________ _________________________ (P _______________) .

 

o          BANK FINANCING

 

                Terms and Conditions:

1.        All payments should be covered by POSTDATED CHECKS (net of discounts, if applicable).

2.        A penalty charge of 3% per month shall be charged on overdue accounts, cumulative.

3.        If the account is not paid within a specified term, the contract shall be automatically amended indicating that the total remaining balance inclusive of the discounts and penalties shall now be imputed with 5% interest.

4.        If the Vendee fails to pay at least three (3) monthly installments, this Agreement shall be considered null and void.  Following such default, the Vendor shall be at liberty to dispose of and sell said lot, subject to the provisions of R.A. 6552, otherwise known as the Maceda Law, in so far as said law is applicable.

5.        Processing and Transfer fees are for the account of the Vendee.

 

If within one (1) week after my reservation, I have not informed KLLDI of my payment term, that would mean I would be availing of the Term Payment stated above.

 

I am depositing the sum of __________________ (P______________) as Reservation Fee for the property.  Payments to complete downpayment or to complete a cash sale will be paid on or before ____________________ and I agree to pay

 

 

 

three percent (3%) per month in penalties, cumulative, on all outstanding or unpaid balance.  The penalties shall accrue from the date said unpaid balance becomes due and demandable.

 

I hereby authorize KLLDI to withhold taxes from my payments and remit to the B.I.R. in accordance with B.I.R. RR 17-2003, the said taxes.  I also acknowledge that I shall be liable for the penalties, interest and surcharge on the withholding tax due to my late payment of amortization.  Should KLLDI advance such tax payments (which may include penalties, interests and surcharge), I shall pay, in addition to payments made by KLLDI, an additional interest to be computed from date of payment until the same is reimbursed by me, at the prevailing interest rates based on the actual payments made to the B.I.R.

 

Upon payment and delivery of the documentary requirements, the prescribed Contract to Sell shall be executed.  The Contract to Sell will be:

 

In the name of: _______________________________________

 

It is understood and agreed that this Reservation is non-transferable and any transfer made by me without the express written approval of KLLDI shall be void and shall cause for cancellation of this Reservation Agreement and forfeiture of my Reservation Fee and other payments already made.

 

Processing fees representing documentary stamps, science stamps, sales tax, notarial fees and other expenses related to the transfer of the title in the name of the Vendee shall be for the account of the Buyer. 

 

Further, I understand and agree that this Reservation Agreement may likewise be cancelled without further notice and the Reservation Fee and whatever additional payments I have made FOREFEITED in the even that I fail to comply with the submission of the following documents, duly signed by me, Contract to Sell, Deed of Restriction, Information Sheet and Post Dated Checks for the downpayment, within the 30-day period from the date of reservation.

 

In the event that the Property is found to be unavailable for sale to me due to technical reasons or due to a prior sale commitment or transaction with another party, the same having been offered to me by mistake or inadvertence, I agree to have the property exchanged with another parcel of land at __________________________, or I may cancel this Reservation Agreement, and be refunded of all payments I have made, without interest.

 

Any provision notwithstanding, and before the execution of the Contract to Sell, the parties agree that each one may cancel and rescind this Reservation Agreement, upon mutual consent, by giving written notice of its intention to do so to the other; and returning what has been received from the other by virtue of this Agreement, without interest or accounting for the fruits thereof, but without prejudice to the claim for any damages including administrative costs, that the party may suffer because of the cancellation.

 

I understand that any representation or warranty made to me by the agent who handled this sale, which is not embodied herein, shall not be binding unless reduced into writing and confirmed by KLLDI through its duly organized representatives.  This Agreement states the entire understanding of both parties hereto and any stipulation, condition, representation or warranty, oral or otherwise not contained in this Reservation Agreement or incorporated herein by reference shall not be binding and this Agreement shall not be considered as changed, modified, altered or in any way attended by acts of tolerance unless such changes, modifications or amendments are made in writing by KLLDI.

 

 

With my marital consent:

 

 

________________________                                                                                              ____________________ 

Name of Buyer                                                                                                                        Spouse

(Signature above printed name)

Address  :

Tel. No.    :

TIN                           :                                                                                                                                                              

Res. Cert.                :

Date/Place Issued:                                                                                                  Approved by:

 

                                                                                                                                                                                                                                                                                                                                                   Kristin L. Lu

President & CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

/dhines <www.davaoestate.com>