Contract-to-Sell

Contract-to-Sell is a bilateral legal document that binds a prospective seller to transfer ownership of real property to a prospective buyer upon fulfillment of specified conditions, typically full payment of the purchase price. Under Philippine law, it differs from a Contract of Sale because ownership remains with the seller until all conditions are met.

In the context of Philippine real estate transactions, the Contract-to-Sell is governed by Presidential Decree No. 957 (Subdivision and Condominium Buyers' Protective Decree). The Department of Human Settlements and Urban Development (DHSUD) requires developers to use standardized Contract-to-Sell forms with specific disclosure formats per DHSUD Board Resolutions.

Core Features

A Contract-to-Sell in the Philippines typically includes:

• Parties' identification – Full legal names and addresses of buyer and seller
• Property description – Complete details including Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) number
• Purchase price – Total contract price in Philippine Pesos (PHP), including breakdown of equity and bank financing portions
• Payment schedule – Detailed amortization schedule showing monthly installments, due dates, and penalties
• Suspensive condition – Explicit statement that ownership transfers only upon full payment
• Developer obligations – Completion timelines, specifications, and amenities per License to Sell
• Buyer obligations – Payment terms, maintenance of property upon turnover
• Default provisions – Rights and remedies per Maceda Law (R.A. 6552)

Use Cases

The Contract-to-Sell is commonly used in:

• Pre-selling transactions – When buying condominium units or subdivision lots still under construction
• Installment sales – Properties purchased through monthly equity payments before bank take-out
• Developer sales – Primary market transactions directly from real estate developers
• Reservation-to-purchase workflows – Converting reservation agreements into formal purchase commitments

You can use a Contract-to-Sell when you want to secure a property while paying in installments over time. This protects both you as a buyer and the developer by clearly defining payment milestones and transfer conditions.

Integration

In real estate software systems, Contract-to-Sell management integrates with several critical modules:

• Sales Management – Tracks contract status from reservation to full payment
• Payment Schedule – Automates amortization computations and payment tracking
• Sales Document Management – Stores and manages contract documents with version control
• Sales Approval Workflow – Routes contracts through approval hierarchies
• Document Templates – Generates DHSUD-compliant Contract-to-Sell forms

Real estate platforms like iRealtee provide automated Contract-to-Sell generation that ensures compliance with DHSUD disclosure requirements while streamlining the sales process for brokers and developers.

Related Terms

• Deed of Sale – The final document executed upon full payment that transfers ownership
• Reservation Agreement – Preliminary document securing buyer's intent before Contract-to-Sell
• Maceda Law – R.A. 6552 that protects installment buyers from forfeiture
• PD 957 – The Subdivision and Condominium Buyers' Protective Decree
• License to Sell – DHSUD permit required before developers can sell properties

References

• P.D. No. 957 – Subdivision and Condominium Buyers' Protective Decree (LawPhil)
• R.A. 6552 – Maceda Law (LawPhil)
• Article 1479, Civil Code of the Philippines
• DHSUD Developer Services
• Coronel vs. Court of Appeals, 263 SCRA 15 (1996)