Legal Documents

What is Legal
Document?
• A legal document, in general, is a document
where two or more parties enter into an
agreement and it is confirmed by the
placement of their signatures at the end.
• The term legal documents have a very broad

term when it comes to discovery and court
required documents.
• When a legal document is created to form a
contract, all parties must agree and sign the
document. If you do not sign the document it
cannot be held as binding in a Court of Law.
• Many people attest to the “verbal agreement”
theory. However, one should always remember the
old cliche: “The agreement is only as good as
the paper it is written upon.”
Here are the important details you
need to know about legal
documents:
Contract to
Sell
The Contract to Sell is a document that refers to an agreement
between a seller and a buyer. It states that the seller
commits to selling the property to the buyer and the buyer
also promises to pay for it. However, a signed contract to sell
does not mean that there is a transfer of ownership. Both
buyer and seller must first meet a set of conditions and
obligations to fulfill their part of the agreement.
The Contract to Sell signifies that both parties agree to hold up
their end of the bargain at the end of the period agreed upon.
It is drafted by either the broker or the developer and issued
to home buyers who have put up a down payment for their
homes.
Deed of Sale
The Contract to Sell serves as the basis for the execution
of the Deed of Sale. When both parties have fully complied
with the conditions and obligations stated in the
Contract of Sale, then they can enter into a Deed of Sale.
This legal document proves that full payment has been
made and the sale has already transpired between the
seller and the buyer. After having the deed of sale signed by
both parties, the document must be notarized to protect it
from fraud.
Transfer of ownership and turn over of property rights
happen at this stage. The Deed of Sale is the final document
that will be filed with the Registry of Deeds as the basis for the
issuance of a certificate. This would effectively transfer title from
the seller to the buyer.
Memorandum of Agreement
(MOA)
The Memorandum of Agreement (MOA) is also a legal
document that signifies two parties or separate entities
have entered into a general agreement prior to finalizing a
more detailed contract. The purpose of the MOA is to show that
two parties have agreed to work together to meet an
objective. It also outlines the discussed terms of a new
partnership.
Loan
Agreement
The loan agreement is a document that shows a borrower
promises to pay a sum of money to a lender at a later date.
It details the loan amount, how the loan will be repaid, and the
due date of payment. Lenders who are loaning out money, goods,
or services must ensure a loan agreement is in place so they
can take legal action and have their money back.
This legal document outlines the specifics

surrounding the loan including the frequency of
payments (e.g. monthly, one lump sum, etc) and acceptable
payment methods (e.g., cash, credit card, debit payments, etc).
Contract of
Agreement
Article 1318 of the Civil Code states that a contract shall be
obligatory in whatever form it has been entered into, provided
all the essential requisites – consent, object, and cause – for
their validity are present.
Consent happens when there’s a definite offer by one
party and there’s an absolute acceptance by another. The
object or subject matter of the contract may be a thing, right, or
service that must not be contrary to law, morals, and good
customs. The cause of the obligation may vary but is essentially
the promise to give a thing or perform a service.
Demand
Letter
The demand letter is a formal notice urging a party to
perform a legal obligation, such as paying a sum of
money, resolving a problem, or acting on a contract.
Commonly used by businesses, demand letters are used to
resolve disputes and prevent filing a claim in court.
The legal form contains details of the dispute, a
specified resolution, a deadline, a justification for the
demand, and steps to be taken if the dispute is not
resolved.
Employment
Contract
An employment contract is a legal document that
outlines an agreement between an employee and
employer. It specifies the job title and duties, salary
and benefits, work hours, confidentiality, terms of
employment, grievance procedures, and several other
clauses. An employee should have a written contract within
the first two months of being hired.
Reservation Letter
Another document required when buying a home is a
reservation letter. Due to the common practice of “first come, first
served,” a reservation letter will shield you from losing your
rights in the event that another customer makes a reservation.
This letter serves as an assurance that the property you wish

to purchase is no longer on the market and has been set aside for
you, excluding any potential rival bidders. As a result, the seller will want
you to provide earnest money (sometimes referred to as the reservation
fee) as proof of your intent to buy the relevant property. Additionally, the
seller must give a receipt proving payment of the reservation fee.
Guarantee Letter
A guarantee letter confirms that the buyer has received
approval for a loan from a bank or another financial institution.
If the buyer’s requirements are accepted by the bank or other
financial institution and found to be eligible, complete, and in
compliance, a guarantee letter will be issued.
Certificate of Tax Declaration
One of the most important legal documents when buying or
owning a real estate property is a tax declaration. A
Certificate of Tax Declaration (CTD) is a declaration of the worth
of your property for taxation. It is used to indicate the value of
your land and improvements for real property tax reasons. As a
property owner, you are responsible for paying the property’s
annual taxes or amilyar and updating your tax declaration
for your local government to document its current value.

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What is Legal

• The term legal documents have a very broad

This legal document outlines the specifics

This letter serves as an assurance that the property you wish

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