The Farm Purchase Agreement serves as the primary legal instrument for transferring ownership of agricultural land in the Philippines. This document is essential when purchasing farm property and must comply with the Comprehensive Agrarian Reform Law, which sets specific requirements and limitations on agricultural land ownership. The agreement is used to document the complete transaction details, including property specifications, price, payment terms, and conditions of sale, while ensuring compliance with Philippine agricultural regulations. It's particularly important for addressing unique aspects of farm purchases such as existing tenancy rights, crop transfers, water rights, and environmental requirements. The document must incorporate various regulatory approvals and certificates from relevant government agencies, including the Department of Agrarian Reform.
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1. Parties: Identification of the seller and purchaser, including complete legal names, addresses, and tax identification numbers
2. Background: Context of the transaction, brief description of the property, and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the farm property, including exact boundaries, total area, and location details
5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments
6. Payment Terms: Detailed payment structure, including deposits, installments, and final payment arrangements
7. Conditions Precedent: Conditions that must be met before the sale can proceed, including regulatory approvals and documentation requirements
8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, absence of encumbrances, and compliance with agricultural laws
9. Buyer's Representations and Warranties: Buyer's guarantees regarding legal capacity to purchase and compliance with ownership restrictions
10. Closing and Transfer of Title: Process and requirements for completing the sale and transferring property ownership
11. Taxes and Expenses: Allocation of taxes, registration fees, and other transaction-related expenses
12. Risk and Insurance: Transfer of risk and insurance requirements during the transaction period
13. Default and Remedies: Consequences of default by either party and available remedies
14. Governing Law: Specification of Philippine law as governing law and relevant jurisdictional matters
15. Dispute Resolution: Process for resolving disputes, including mediation and arbitration procedures
16. Notices: Method and addresses for formal communications between parties
17. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments
1. Tenant Rights and Obligations: Required when the property has existing agricultural tenants, outlining their rights under CARL
2. Environmental Compliance: Required when the property has specific environmental considerations or requirements
3. Water Rights: Include when the property includes irrigation systems or water rights
4. Crop Transfer: Required when the sale includes standing crops or ongoing agricultural operations
5. Indigenous Peoples' Rights: Required when the property is within or adjacent to ancestral domains
6. Mineral Rights: Include when there are existing mineral rights or mining claims affecting the property
7. Foreign Ownership Compliance: Required when the buyer is a foreign entity or has foreign ownership
8. Government Programs: Include when the property is subject to agricultural support programs or subsidies
9. Financing Provisions: Required when the purchase involves bank financing or installment payments
1. Schedule A - Property Details: Detailed technical description of the property, including survey plans and technical boundaries
2. Schedule B - Title Documents: List of all title documents and certified true copies
3. Schedule C - Existing Encumbrances: Details of any existing liens, mortgages, or other encumbrances
4. Schedule D - Improvements Inventory: List and description of all farm improvements, structures, and fixed equipment
5. Schedule E - Environmental Reports: Environmental assessment reports and compliance certificates
6. Schedule F - Agricultural Certificates: Copies of relevant agricultural certificates and permits
7. Schedule G - Payment Schedule: Detailed breakdown of payment terms and schedule
8. Schedule H - Transfer Documents: List of documents required for property transfer
9. Appendix 1 - Land Registration Documents: Copies of land registration and tax declaration documents
10. Appendix 2 - Due Diligence Reports: Results of legal and technical due diligence investigations
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