Document background
The Sale Leaseback Agreement is a strategic financial instrument used when a property owner seeks to unlock capital tied up in real estate assets while retaining operational use of the property. This document type is particularly relevant in the Philippine context, where businesses may need to optimize their real estate holdings while maintaining operations. The agreement must comply with Philippine legal requirements, including the Civil Code, Property Registration Decree, and tax regulations. It typically includes detailed provisions for both the sale transaction and the subsequent lease arrangement, covering aspects such as property valuation, transfer taxes, registration requirements, lease terms, maintenance obligations, and eventual disposition rights. This arrangement is commonly used in corporate restructuring, expansion financing, or capital raising initiatives, providing businesses with immediate access to capital while maintaining operational continuity.
