Deed of Sale Checklist: What to Check Before Signing a Property Sale Contract in the Philippines
- DP Law
- Jul 24
- 5 min read
A Deed of Sale is one of the most important legal documents in any property transaction. Once signed and notarized, it legally binds the buyer and seller, and becomes the basis for ownership transfer, tax payment, and title registration. Unfortunately, many people in the Philippines sign this document without thoroughly reviewing its contents—resulting in costly disputes, rejections by the Registry of Deeds, or even invalid sales.
This guide outlines the essential deed of sale checklist and what to review before signing a Deed of Sale in the Philippines, to help ensure your property purchase is valid, enforceable, and fraud-free.
What Is a Deed of Sale?
A Deed of Absolute Sale (DOAS) is a notarized legal document that formally transfers property ownership from the seller to the buyer. According to Articles 1458 to 1470 of the Civil Code of the Philippines, a valid sale requires the parties' consent, a lawful object (i.e., the property), and a declared price.
To be legally binding and registrable, a Deed of Sale must:
Be in writing
Accurately identify the parties and the property
Include agreed payment terms
Be notarized to become a public document
Failure to include the proper legal requirements can delay or even invalidate the entire transfer process.
Deed of Sale Checklist: Key Items to Verify Before Signing
1. Buyer and Seller Details Must Be Accurate
Ensure that the buyer and seller names are spelled correctly and fully match their valid government-issued IDs. Their civil status, citizenship, and addresses should also be complete and accurate.
Legal capacity is critical—only individuals who legally own the property or are authorized by law may execute a valid sale. If the transaction involves an attorney-in-fact, ensure a Special Power of Attorney (SPA) is attached and properly notarized.
If the seller is married, both spouses must sign the document or give written consent, especially when the property is conjugal. This requirement falls under Article 96 of the Family Code, which mandates joint disposition of conjugal assets.
2. Property Description Must Match the Title and Tax Declaration
Before signing, confirm that the property description in the Deed of Sale is complete and accurate. This includes:
Title number (e.g., TCT No. 123456)
Lot and block number
Area in square meters
Location (barangay, city/municipality)
Type of structure or improvements (if any)
You should compare this description with:
A Certified True Copy (CTC) of the title from the Registry of Deeds
The latest Tax Declaration from the City or Municipal Assessor's Office
Under Section 56 of Presidential Decree No. 1529 (Property Registration Decree), registrable documents must contain a clear and precise legal description of the property to avoid confusion, overlapping claims, or rejection during registration.
3. Clear Purchase Price and Payment Terms
The agreed purchase price must be clearly stated in the contract, written in both words and figures. If there are staggered payments or special terms (e.g., post-dated checks or bank financing), the details should be reflected in full.
Avoid vague phrases like "to be paid later" or “as agreed separately,” which may create legal ambiguity. Under Article 1475 of the Civil Code, the contract of sale is perfected when there is agreement on the object and the price.
Payment terms should include:
Total price
Down payment and balance (if applicable)
Method of payment (cash, check, bank transfer)
Payment deadlines
4. Document Attachments Must Be Complete
A valid and enforceable Deed of Sale should be supported by the following:
Clear photocopies of valid IDs of the buyer and seller
Updated Tax Declaration and Real Property Tax Clearance
Special Power of Attorney, if signed by a representative
If applicable, Extra-Judicial Settlement of Estate with Waiver (for inherited property)
Prior sale documents, if the property is a resale
The BIR will require these attachments when issuing the Certificate Authorizing Registration (CAR), which is essential for processing the transfer of ownership.
Buyers are advised to avoid signing if any document is “to follow.” The sale should not proceed unless all conditions and paperwork are complete.
5. Notarial Acknowledgment and Witnesses
The Deed of Sale must be notarized in the presence of a duly commissioned notary public. Without notarization, the document remains a private contract and cannot be registered at the Registry of Deeds.
To comply with the Rules on Notarial Practice (A.M. No. 02-8-13-SC), the document must:
Be signed by the parties in front of the notary
Include a notarial acknowledgment with the notary’s seal and commission details
Be signed by at least two competent witnesses
A notarized Deed of Sale serves as a public document, admissible in court and recognized by government agencies like the BIR and the Registry of Deeds.
Additional Contract Review Tips
Before affixing your signature, take time to:
Read every clause, especially those concerning taxes, penalties, and delivery conditions
Watch out for waiver clauses or one-sided provisions
Confirm who will shoulder the Capital Gains Tax, Documentary Stamp Tax, and Transfer Tax
Ensure that no spaces or blanks are left in the document
Hiring a lawyer to review the Deed of Sale is highly advisable. This ensures the document complies with the law and protects your rights as a buyer.
Summary: Key Points to Check in a Deed of Sale
Item to Verify | Why It Matters |
Buyer and seller details | Confirms identity and legal capacity |
Property description | Prevents disputes and ensures accurate registration |
Purchase price and terms | Avoids ambiguity and contractual issues |
Document attachments | Required for BIR processing and RD registration |
Notarization and witnesses | Gives the document legal force and admissibility in court |
Final Thoughts
A Deed of Sale may appear to be a simple document, but it carries serious legal implications. Once signed, it becomes the primary basis for ownership transfer, tax assessment, and title registration. That's why it's crucial to review every section, ensure that all supporting documents are complete, and verify the identities and capacity of the parties involved.
Need Help Reviewing a Deed of Sale?
DPASCUAL Law Office assists buyers, sellers, and property owners across Muntinlupa, Las Piñas, Cavite, and Laguna with legal document review, SPA preparation, title verification, and property sale compliance. Whether you're preparing to sign or have questions about the process, our team is ready to guide you.
Book an online or onsite consultation today to secure your transaction with legal confidence.