Edsel A. Flores, a resident of Bacoor City, Cavite, sold to Joel R. Vargas, a resident of Binondo, Manila, a parcel of land located in Bacoor City, Cavite. The parcel of land had an area of 500 square meters, and was covered by a clean Original Certificate of Title No. 1234567 issued by the Registry of Deeds of Cavite. The purchase price amounts to ₱8 million. The parties agreed that the seller shall bear the capital gains tax, real estate tax, and documentary stamp tax, while the buyer shall bear the rest of the expenses. Prepare a notarized deed of absolute sale.
Suggested answer only. Not an official answer and not legal advice.
A valid Deed of Absolute Sale between Edsel A. Flores and Joel R. Vargas is prepared by executing a public instrument incorporating all agreed terms and acknowledging it before a notary. Under Articles 1358 and 1458 of the Civil Code, a land sale
Unlock the full Remedial Law answers365 days of full access. GCash, Maya and card accepted.
This is not an official scoring system and carries no weight with the Supreme Court or any bar review provider. It measures how much of the suggested answer's wording your response covers, not whether your reasoning is correct. For practice only.
Quick check
What converts a private deed of absolute sale into a public document under Philippine law?
Notarization converts a private document into a public instrument under the 2004 Rules on Notarial Practice.
Which article of the Civil Code requires contracts transmitting real rights over immovable property to appear in a public document?
Article 1358 of the Civil Code mandates that contracts conveying real rights over immovable property must appear in a public document.
Under the principle of autonomy of contracts, how may parties allocate taxes in a real estate sale?
Parties are free to stipulate the allocation of taxes and expenses under the autonomy of contracts.
What is the legal effect of executing a notarized deed of absolute sale over real property?
Choices available with full access.
What requirement must a notary public verify before executing a notarial acknowledgment on a deed of sale?
Choices available with full access.
Learn more about these topics
1. Requisites of Conveyance
Under Article 1458 of the Civil Code, a contract of sale is perfected by the meeting of the minds upon the object of the contract and the price. For sales of real property, Article 1358 requires that acts and contracts which have for their object the creation, transmission, modification, or extinguishment of real rights over immovable property must appear in a public document. The deed of absolute sale serves as the formal instrument of conveyance, embodying the identities of the parties, accurate technical description of the land, total purchase price, and specific covenants regarding liabilities and tax allocations.
2. Allocation of Expenses
In contracts of sale involving real property, the law permits the contracting parties to freely stipulate on the allocation of taxes and transfer expenses under the principle of autonomy of contracts. Standard real estate practice assigns capital gains tax, real estate tax, and documentary stamp tax to the seller, while transfer tax, registration fees, and incidental expenses are borne by the buyer. Explicitly incorporating these tax covenants into the deed of absolute sale ensures legal clarity, prevents subsequent disputes between the parties, and guides the Bureau of Internal Revenue during tax clearance processing.
3. Notarial Acknowledgment
Under the 2004 Rules on Notarial Practice, notarization of a private deed of absolute sale transforms it into a public document. To perform a valid notarial acknowledgment, the notary public must confirm the personal appearance of the principal parties, verify their identities through competent evidence of identity, and certify that they voluntarily executed the instrument as their free act and deed. A properly notarized deed of absolute sale enjoys the legal presumption of regularity and is legally required by the Registry of Deeds to effect the registration and issuance of a new transfer certificate of title.