MEMORANDUM OF AGREEMENT
Between Seller-Heirs of Antonio Reyes Side and Brokers/Agents
KNOW ALL MEN BY THESE PRESENTS
This Agreement, made and executed this ____ day of _______ 2018, by and between:
_____________________________, hereinafter referred to as “SELLER-
HEIRS OF ______________________________ side”
-and-
_____________________________ with accredited lic. # _______________ of
______________________________________________________________, hereinafter
referred to as the “BROKERs/AGENTs.
WITNESSETH: That –
WHEREAS, the SELLER-HEIRS OF _______________________________
side is the legal heirs, duly authorized and empowered to enter into, transact, sign and
execute the consummation of sale of the property located at
________________________ covered by TCT No.______________, by virtue of the
notarized Extra Judicial Settlement dated May____, 2018, hereto seen as “Attachment
A;”
WHEREAS, the BROKERs/AGENTs are authorized to sell the property at the
indicated terms and conditions thereat as contained in the Authority to Sell (ATS)
herein referred to as “Attachments B”;
WHEREAS, the ownership of the property available for sale , now known as
“SUBJECT PROPERTY” is part and parcel, covered by TCT No. ___________ herein
described below as follows:
TCT NO. _____________
Registry of Deeds for ___________
“A parcel of land (Lot No. ______ of the subd. Plan, Psd-__________ being
a portion of Lot No._______, ____Estate, (___________) (LRC) Rec. No. _____),
situated
in the ______________________, Prov_____, Is. of Luzon. Bounded on the SW., SNW.,
along lines __________by River & Lot ______, ____ Estate; on the NE., along lines
_______________ by creek & Lot _____ , ___ Estate, on the SE., along lines
___________ by creek & lot _____, ____ Estate; and on the SE., along lines _____15-1
by lot ______of the subd.plan. Beginning at apt.. marked “1” on plan, being S. ____ deg.
____’ E., _____ m. From Mon. ___, ____ Estate; thence N. __ deg. ___ deg. __’ E., __
m. To pt.3; xxx containing an area of _________________________ SQUARE
METERS, registered under the name of HEIRS OF
______________________________ .
WHEREAS, that the object for the distribution of the Over-statement of the Selling Price is the
“SUBJECT PROPERTY” identified described above.
NOW, THEREFORE, in consideration of the above premises, the parties mutually agree on the
following:
Article 1
SELLING PRICE OF SUBJECT PROPERTY
Section 1. NET Floor Price. The NET floor price of the SELLER-HEIRS OF
_________________________________ side for the SUBJECT PROPERTY is PESOS:
___________________________
(Php _______) per square meter.
Section 2.Over-statement of the Selling Price. The SELLER-HEIRS OF
_________________________________ side expressly agrees and allows the
BROKERs/AGENTs to overstate the Selling Price for the SUBJECT PROPERTY being sold
in the amount of PESOS: __________________________
(Php ______.00) per square meter, to allow room for any negotiation in price between the
potential Buyer and Seller.
Section 3. Final Negotiated Price. The SELLER-REYES side expressly agrees and commits
to the BROKERs/AGENTs that the negotiated price of SUBJECT PROPERTY will not go
lower than PESOS: ____________________ (Php _______.00) per square meter.
Article 2
RECOGNITION OF OVER-statement of the SELLING PRICE
A sale is consummated when a contract of sale has been executed and signed between the
all Sellers and the Buyer/s relative to the sale of the SUBJECTPROPERTY.
Over-statement of the Selling Price. For and in consideration of the time and effort
exerted by BROKERs/AGENTs to locate Buyers for the SUBJECT PROPERTY, and by way
of compensation, the SELLER-HEIRS OF ______________________________ side commits
to give a Over-statement of the Selling Price to the BROKERs/AGENTs , amount of which
shall be computed as follows:
2.1 From the SELLER-HEIRS OF ______________________________side’s share
sales proceeds of SUBJECT PROPERTY, all related expenses mentioned in the of Authority to
Sell shown in Attachments B&C shall be deducted;
2.2 The BROKERs/AGENTs has agreed to shouldering the half of capital gains tax tax
amount of Php ______________________ on the condition that the SELLER-HEIRS OF
ANTONIO REYES side does not go below final negotiated price of Php _______ per square
meter.
2.3 The SELLER-HEIRS OF ______________________________side agrees and
commits to protect the OVER-STATEMENT of the BROKERs/AGENT by not going below
the Final Negotiated Price of Php ________ per square meter in the negotiation with the
Buyer.
2.4 The Net Floor Price of Php ___________ per square meter as imposed by the
SELLER-HEIRS OF ______________________________ side, shall be deducted from the
total negotiated contract price. The BASIS for computing the Over-statement price of
Brokers/Agents is illustrated by the example below:
Total Land Area of Subject Square meters
Property
Multiplied by Final Php
Negotiated Price/sqm
Total Final Negotiated Php
Contract Price
Less: Expenses of the
Seller
Net Floor Price as required Php ____.00/sqm Php
by the Seller x 40,000 sqms
Php ____.00/sqm Php
Capital Gains Tax – 6% x 6% x 40,000
sqms
Estate Taxes-Heirs of
Antonio Reyes Side
Total Expenses
Half of the Expenses for
CGT less
from Broker/Agents
*Estimated Base for the Over-statement
Selling Price
Any other standard deductions as required by Law may still be deducted from the Base for
the Commission Incentive. This Base Computation shall be the template used for this particular
transaction in computing the over-statement price with the SELLER-HEIRS OF
______________________________ side.
The commission incentive shall be subject to appropriate withholding taxes
imposed by the Bureau of Internal Revenue.
Article 3
MODE OF PAYMENT OF COMMISSION INCENTIVE- SELLER
HEIRS ______________________________SIDE
The SELLER-HEIRS OF ______________________________ side agrees to immediately
pay the BROKER/AGENT the agreed over-stement price in full either in cash , Manager’s
Check, or in an arrangement that may be mutually agreed and acceptable to all parties.
In WITNESS WHEREOF, the parties hereto have affixed their respective signatures this ____
day of ______________, 2018 in ______________ City, Metro Manila Philippines.
SELLER: BROKER/AGENT:
______________________
_______________________
Accredited Property
Agent
Lic. # ___________
WITNESSED BY:
_______________________
Print Name & Signature ___________________
Print Name &
Signature
ACKNOWLEDGEMENT
REPUBLIC OF THE
PHILIPPINES
____________________
City ) S.S
BEFORE ME a notary public for and in __________City this ____ day of
________ 2018 personally appeared:
Name Government Id Issued and Place Expiry
Known to me and to me known to be the same persons who executed the
foregoing instrument and they acknowledge to me that the same is their free and
voluntary act and deed and the corporations they represent.
WITNESS MY HAND AND SEAL.
NOTARY PUBLIC
DOC. NO. : ______
BOOK NO.: _______
SERIES OF : ______.
