QUALIFICATIONS OF NOTARY PUBLIC

SECTION 1. Qualifications. - xxx To be eligible for commissioning as notary public, the petitioner:

(1) must be a citizen of the Philippines;

(2) must be over twenty-one (21) years of age;

(3) must be a resident in the Philippines for at least one (1) year and maintains a regular place of work or business in
the city or province where the commission is to be issued;

(4) must be a member of the Philippine Bar in good standing with clearances from the Office of the Bar Confidant of the
Supreme Court and the Integrated Bar of the Philippines; and

(5) must not have been convicted in the first instance of any crime involving moral turpitude.( RULE III )

SEC. 4. Summary Hearing on the Petition. - The Executive Judge shall conduct a summary hearing on the petition and shall
grant the same if:

 (a) the petition is sufficient in form and substance;

 (b) the petitioner proves the allegations contained in the petition; and

 (c) the petitioner establishes to the satisfaction of the Executive Judge that he has read and fully understood these
Rules.

 The Executive Judge shall forthwith issue a commission and a Certificate of Authorization to Purchase a Notarial Seal
in favor of the petitioner.

REQUIREMENT OF PUBLICATION OF SUMMARY HEARING

SEC. 5. Notice of Summary Hearing. - (a) The notice of summary hearing shall be published in a newspaper of
general circulation in the city or province where the hearing shall be conducted and posted in a conspicuous place in the
offices of the Executive Judge and of the Clerk of Court.

JURISDICTION AND TERM

SEC. 11. Jurisdiction and Term. - A person commissioned as notary public may perform notarial acts in any place
within the territorial jurisdiction of the commissioning court for a period of two (2) years commencing the first day of
January of the year in which the commissioning is made, unless earlier revoked or the notary public has resigned under these
Rules and the Rules of Court.

POWERS OF A NOTARY PUBLIC

SECTION 1. Powers. - (a) A notary public is empowered to perform the following notarial acts:

(1) acknowledgments;

(2) oaths and affirmations;

(3) jurats;

(4) signature witnessing;

(5) copy certifications; and

(6) any other act authorized by these Rules. ( RULE IV)

 DIFFERENT NOTARIAL ACTS THAT A NOTARY PUBLIC MAY PERFORM

( RULE II )

ACKNOWLEDGMENT

 SECTION 1. Acknowledgment. - "Acknowledgment" refers to an act in which an individual on a single occasion:

 (a) appears in person before the notary public and presents an integrally complete instrument or document;

 (b) is attested to be personally known to the notary public or identified by the notary public through competent
evidence of identity as defined by these Rules; and

 (c) represents to the notary public that the signature on the instrument or document was voluntarily affixed by him
for the purposes stated in the instrument or document, declares that he has executed the instrument or document as
his free and voluntary act and deed, and, if he acts in a particular representative capacity, that he has the authority to
sign in that capacity.

 Example of “ACKNOWLEDGMENT”

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU ) S.s.

BEFORE ME A NOTARY PUBLIC, for the City of Cebu, personally came and appeared MATEO CABALUNA, whose identity is
proven by his Non-Professional Driver’s License No. 12345 valid until September 2009 and presented his CTC No. 7545 issued
on 1/2/06 at Cebu City, Philippines, and who acknowledged to me that the same is his free and voluntary act and deed.

 Necessity to present CTC

NOTE: IS COMMUNITY TAX STILL REQUIRED TO BE STATED IN THE JURAT OR ACKNOWLEDGMENT?

ANSWER: YES

BASIS:

SEC. 163 [ Local Government Code of 1991 ].

Presentation of Community Tax Certificate On Certain Occasions. –

(a) When an individual subject to the community tax acknowledges any document before a notary public, takes the
oath of office upon election or appointment to any position in the government service; receives any license, certificate, or
permit from any public authority; pays any tax or fee; receives any money from any public fund; transacts other official
business;

or receives any salary or wage from any person or corporation, it shall be the duty of any person, officer, or
corporation with whom such transaction is made or business done or from whom any salary or wage is received to
require such individual to exhibit the community tax certificate. The presentation of community tax certificate shall not
be required in connection with the registration of a voter.

b) When, through its authorized officers, any corporation subject to the community tax receives any license, certificate,
or permit from any public authority, pays any tax or fee, receives money from public funds, or transacts other official business,
it shall be the duty of the public official with whom such transaction is made or business done, to require such corporation to
exhibit the community tax certificate.

AFFIRMATION OR OATH

SEC. 2. Affirmation or Oath. - The term "Affirmation" or "Oath" refers to an act in which an individual on a single occasion:
  (a) appears in person before the notary public;

 (b) is personally known to the notary public or identified by the notary public through competent evidence of identity
as defined by these Rules; and

 (c) avows under penalty of law to the whole truth of the contents of the instrument or document.

JURAT

 SEC. 6. Jurat. - "Jurat" refers to an act in which an individual on a single occasion:

(a) appears in person before the notary public and presents an instrument or document;

(b) is personally known to the notary public or identified by the notary public through competent evidence of identity as
defined by these Rules;

(c) signs the instrument or document in the presence of the notary; and

(d) takes an oath or affirmation before the notary public as to such instrument or document.

 EXAMPLE OF “JURAT”

SUBSCRIBED AND SWORN TO BEFORE ME by MATEO CABALUNA, who is personally known to me and presented his CTC
No. 7545 issued on 1/2/06 at Cebu City, Philippines, and who is the same person who personally signed before me the
foregoing affidavit and acknowledged that he executed the same.

NOTARY PUBLIC

SIGNATURE WITNESSING

SEC. 14. Signature Witnessing. -The term "signature witnessing" refers to a notarial act in which an individual on a single
occasion:

(a) appears in person before the notary public and presents an instrument or document;

(b) is personally known to the notary public or identified by the notary public through competent evidence of identity as
defined by these Rules; and

(c) signs the instrument or document in the presence of the notary public.

EXAMPLE OF “SIGNATURE WITNESSING”

BEFORE ME, a Notary Public in and for the City of Dumaguete, this 3rd day of November 2007, personally appeared
PEDRO CRUZ who presented to me ( name of document) which he voluntarily signed in my presence.

WITNESS MY HAND AND SEAL this_day of November 2007 at Dumaguete City

COPY CERTIFICATION

SEC. 4. Copy Certification. - "Copy Certification" refers to a notarial act in which a notary public:

(a) is presented with an instrument or document that is neither a vital record, a public record, nor publicly recordable;

(b) copies or supervises the copying of the instrument or document;

(c) compares the instrument or document with the copy; and

(d) determines that the copy is accurate and complete.

EXAMPLE OF “COPY CERTIFICATION”

CERTIFICATION

This is to certify that I was presented with a______(name of instrument) which is neither a vital record, a public record,
nor publicly recordable; that I copied/supervised the copying of the instrument; and that I compared the copied instrument
with the original copy and I hereby certify that the copy is accurate and complete.

POWER TO CERTIFY THE AFFIXING OF SIGNATURE BY THUMB

(b) A notary public is authorized to certify the affixing of a signature by thumb or other mark on an instrument or
document presented for notarization if:

 (1)the thumb or other mark is affixed in the presence of the notary public and of two (2) disinterested and
unaffected witnesses to the instrument or document;

 (2) both witnesses sign their own names in addition to the thumb or other mark;

 (3) the notary public writes below the thumb or other mark: "Thumb or Other Mark affixed by (name of signatory by
mark) in the presence of (names and addresses of witnesses) and undersigned notary public"; and

 (4) the notary public notarizes the signature by thumb or other mark through an acknowledgment, jurat, or signature
witnessing.

 For Example:

( Thumbmark of Pedro Aurellano)

(Sgd. Maria Clara) (Sgd. Jose Abad)

“Thumbmark affixed by Pedro Aurellano in the presence of Maria Clara, a resident of Cebu City, and Jose Abad, a resident of
Tagbilaran City, and the undersigned Notary Public.”

NOTARY PUBLIC

POWER TO SIGN IN BEHALF OF A PERSON UNABLE TO SIGN

(c) A notary public is authorized to sign on behalf of a person who is physically unable to sign or make a mark on an
instrument or document if:

(1) the notary public is directed by the person unable to sign or make a mark to sign on his behalf;

(2) the signature of the notary public is affixed in the presence of two disinterested and unaffected witnesses
to the instrument or document;

(3) both witnesses sign their own names ;

(4) the notary public writes below his signature: "Signature affixed by notary in presence of (names and addresses of
person and two \2] witnesses)"; and

(5) the notary public notarizes his signature by acknowledgment or jurat.

PROHIBITIONS OF A NOTARY PUBLIC

( RULE: Notarial Act must be performed within regular place of work or business)
SEC. 2. Prohibitions. - (a) A notary public shall not perform a notarial act outside his regular place of work or business;
provided, however, that on certain exceptional occasions or situations, a notarial act may be performed at the request of the
parties in the following sites located within his territorial jurisdiction:

EXCEPTIONS:

(1) public offices, convention halls, and similar places where oaths of office may be administered;

(2) public function areas in hotels and similar places for the signing of instruments or documents requiring
notarization;

(3) hospitals and other medical institutions where a party to an instrument or document is confined for treatment;
and

(4) any place where a party to an instrument or document requiring notarization is under detention.

ADDITIONAL PROHIBITION:

(b) A person shall not perform a notarial act if the person involved as signatory to the instrument or document –

(1) is not in the notary's presence personally at the time of the notarization; and

(2) is not personally known to the notary public or otherwise identified by the notary public through competent evidence of
identity as defined by these Rules.

DISQUALIFICATIONS

SEC. 3. Disqualifications. - A notary public is disqualified from performing a notarial act if he:

(a) is a party to the instrument or document that is to be notarized;

(b) will receive, as a direct or indirect result, any commission, fee, advantage, right, title, interest, cash, property, or
other consideration, except as provided by these Rules and by law; or

(c) is a spouse, common-law partner, ancestor, descendant, or relative by affinity or consanguinity of the principal
within the fourth civil degree. ( SECTION 3, RULE IV)

UNDER WHAT CIRCUMSTANCES MAY A NOTARY PUBLIC REFUSE TO NOTARIZE A DOCUMENT?

SEC. 4. Refusal to Notarize. –xxx xxx

(a) the notary knows or has good reason to believe that the notarial act or transaction is unlawful or immoral;

(b) the signatory shows a demeanor which engenders in the mind of the notary public reasonable doubt as to the
former's knowledge of the consequences of the transaction requiring a notarial act; and

(c) in the notary's judgment, the signatory is not acting of his or her own free will.

ANOTHER INSTANCE:

FALSE AND INCOMPLETE CERTIFICATE

SEC. 5. False or Incomplete Certificate. - A notary public shall not:

(a) execute a certificate containing information known or believed by the notary to be false.

(b) affix an official signature or seal on a notarial certificate that is incomplete.

IMPROPER INSTRUMENTS OR DOCUMENTS

SEC. 6. Improper Instruments or Documents. - A notary public shall not notarize:

(a) a blank or incomplete instrument or document; or

(b) an instrument or document without appropriate notarial certification.

REQUIREMENT TO KEEP A NOTARIAL REGISTER

WHAT IS A NOTARIAL REGISTER?

SEC. 5. Notarial Register. - "Notarial Register" refers to a permanently bound book with numbered pages containing a
chronological record of notarial acts performed by a notary public.

SECTION 1. Form of Notarial Register. - (a) A notary public shall keep, maintain, protect and provide for lawful
inspection as provided in these Rules, a chronological official notarial register of notarial acts consisting of a permanently
bound book with numbered pages.

( RULE VI)

ENTRIES IN THE NOTARIAL REGISTER

(1) the entry number and page number;

(2) the date and time of day of the notarial act;

(3) the type of notarial act;

(4) the title or description of the instrument, document or proceeding;

(5) the name and address of each principal;

(6) the competent evidence of identity as defined by these Rules if the signatory is not personally known to the notary;

(7) the name and address of each credible witness swearing to or affirming the person's identity;

(8) the fee charged for the notarial act;

(9) the address where the notarization was performed if not in the notary's regular place of work or business; and

(10) any other circumstance the notary public may deem of significance or relevance.( SECTION 2)

REQUIREMENT OF SIGNING NOTARIAL REGISTER BY PRINCIPAL AND WITNESSES

SEC. 3. Signatures and Thumbmarks. - At the time of notarization, the notary's notarial register shall be signed or a thumb or
other mark affixed by each:

(a) principal;

(b) credible witness swearing or affirming to the identity of a principal; and

(c) witness to a signature by thumb or other mark, or to a signing by the notary public on behalf of a person physically
unable to sign.

RELEVANT CASES

ROSALINDA BERNARDO VDA DE ROSALES, complainant, vs. ATTY. MARIO G. RAMOS, respondent A.C. No. 5645. July 2, 2002
 “The notary public is further enjoined to record in his notarial registry the necessary information regarding the
document or instrument notarized and retain a copy of the document presented to him for acknowledgment and
certification especially when it is a contract. The notarial registry is a record of the notary public's official acts.
Acknowledged documents and instruments recorded in it are considered public documents.

If the document or instrument does not appear in the notarial records and there is no copy of it therein, doubt is
engendered that the document or instrument was not really notarized, so that it is not a public document and cannot bolster
any claim made based on this document. Considering the evidentiary value given to notarized documents, the failure of the
notary public to record the document in his notarial registry is tantamount to falsely making it appear that the document
was notarized when in fact it was not.”

RESIGNATION OF NOTARY PUBLIC

SEC. 2. Resignation. - A notary public may resign his commission by personally submitting a written, dated and signed
formal notice to the Executive Judge together with his notarial seal, notarial register and records. Effective from the date
indicated in the notice, he shall immediately cease to perform notarial acts. In the event of his incapacity to personally appear,
the submission of the notice may be performed by his duly authorized representative. ( SECTION 2, RULE X)

REVOCATION OF NOTARIAL COMMISSION

SECTION 1. Revocation and Administrative Sanctions. - (a) The Executive Judge shall revoke a notarial commission for any
ground on which an application for a commission may be denied.

OTHER GROUNDS:

(b) In addition, the Executive Judge may revoke the commission of, or impose appropriate administrative sanctions upon, any
notary public who:

(1) fails to keep a notarial register;

(2) fails to make the proper entry or entries in his notarial register concerning his notarial acts;

(3) fails to send the copy of the entries to the Executive Judge within the first ten (10) days of the month following;

(4) fails to affix to acknowledgments the date of expiration of his commission;

(5) fails to submit his notarial register, when filled, to the Executive Judge;

(6) fails to make his report, within a reasonable time, to the Executive Judge concerning the performance of his duties,
as may be required by the judge;

(7) fails to require the presence of a principal at the time of the notarial act;

(8) fails to identify a principal on the basis of personal knowledge or competent evidence;

(9) executes a false or incomplete certificate under Section 5, Rule IV;

(10) knowingly performs or fails to perform any other act prohibited or mandated by these Rules; and

(11) commits any other dereliction or act which in the judgment of the Executive Judge constitutes good cause for
revocation of commission or imposition of administrative sanction. ( SECTION 1, RULE XI)

PROCEDURE IN DISCIPLINING A NOTARY PUBLIC

(c) Upon verified complaint by an interested, affected or aggrieved person, the notary public shall be required to file a
verified answer to the complaint.

If the answer of the notary public is not satisfactory, the Executive Judge shall conduct a summary hearing. If the allegations
of the complaint are not proven, the complaint shall be dismissed. If the charges are duly established, the Executive Judge shall
impose the appropriate administrative sanctions. In either case, the aggrieved party may appeal the decision to the Supreme
Court for review. Pending the appeal, an order imposing disciplinary sanctions shall be immediately executory, unless
otherwise ordered by the Supreme Court.

(d) The Executive Judge may motu proprio initiate administrative proceedings against a notary public, subject to the
procedures prescribed in paragraph (c) above and impose the appropriate administrative sanctions on the grounds mentioned
in the preceding paragraphs (a) and (b).
WHY DO WE HAVE TO NOTARIZE A DOCUMENT?

ANSWER:

TO CONVERT A PRIVATE DOCUMENT INTO A PUBLIC DOCUMENT.

WHAT IS THE "EFFECT" IF DOCUMENT IS NOT NOTARIZED?

“ A deed of sale which had not been notarized is still binding between the parties under Article 1261 of the Old Civil Code in
force at the time of the conveyance where all the elements of a valid contract were present, such as subject matter, capacity and
consent of the parties, and lawful consideration” ( SORIANO VS.LATONO G.R. No. L-3408 December 23, 1950)

Presumption of regularity:

In case of conflict of testimony, certificate of notary public that the party to a deed executed the document and
acknowledged the fact of its execution will be upheld.- A MERE PREDONDERANCE OF EVIDENCE IS NOT SUFFICIENT TO
OVERTHROW A CERTIFICATE OF A NOTARY TO THE EFFECT THAT A GRANTOR EXECUTED A CERTAIN DOCUMENT AND
ACKNOWLEDGED THE FACT OF ITS EXECUTION.

“The testimony of a notary public, who is at the same time a lawyer, must be given more credence than the testimony of a party
denying a contract acknowledged before the same notary public”

REFERENCE:

RULE 132-RULES ON EVIDENCE

Section 19. Classes of Documents. — For the purpose of their presentation in evidence, documents are either public or
private.

Public documents are:

(a) The written official acts, or records of the official acts of the sovereign authority, official bodies and tribunals, and
public officers, whether of the Philippines, or of a foreign country;

(b) Documents acknowledge before a notary public except last wills and testaments; and

(c) Public records, kept in the Philippines, of private documents required by law to the entered therein.

WHAT IS THE RULE IN AUTHENTICATING PRIVATE DOCUMENTS?

ANSWER:

SECTION 20, RULE 132.

Section 20. Proof of private document. — Before any private document offered as authentic is received in evidence, its
due execution and authenticity must be proved either:

(a) By anyone who saw the document executed or written; or

(b) By evidence of the genuineness of the signature or handwriting of the maker.

Any other private document need only be identified as that which it is claimed to be. (21a)

WITHOUT PROVING ITS DUE EXECUTION AND AUTHENTICITY, IT CANNOT BE ADMITTED AS EVIDENCE. THIS IS ONE OF
THE MOST IMPORTANT OBJECTIVE WHY A PRIVATE DOCUMENT HAS TO BE NOTARIZED.
 SECTION 30, RULE 132, provides:

Section 30. Proof of notarial documents. — Every instrument duly acknowledged or proved and certified as provided
by law, may be presented in evidence without further proof, the certificate of acknowledgment being prima facie
evidence of the execution of the instrument or document involved.

JURAT ( GENERALLY REQUIRED FOR AFFIDAVITS):

THE REVISED PENAL CODE:

Art. 183. False testimony in other cases and perjury in solemn affirmation. — The penalty of arresto mayor in its
maximum period to prision correccional in its minimum period shall be imposed upon any person, who knowingly makes
untruthful statements and not being included in the provisions of the next preceding articles, shall testify under oath, or make
an affidavit, upon any material matter before a competent person authorized to administer an oath in cases in which the
law so requires.

Any person who, in case of a solemn affirmation made in lieu of an oath, shall commit any of the falsehoods mentioned
in this and the three preceding articles of this section, shall suffer the respective penalties provided therein.

FELY E. CORONADO, complainant, vs. ATTY. ERNESTO FELONGCO, respondent. [A.C. NO. 2611. November 15, 2000]

It is thus obvious that the party acknowledging must appear before the notary public or any other person authorized to
take acknowledgments of instruments or documents. In the case at bar, the acknowledgment of the Deed of Promise to Sell
stated that on the "10th day of September, 1982 at Koronadal, South Cotabato personally appeared: FE ESTEVA [and]
FLORENDA FARAON" before the respondent. Esteva died on September 6, 1982, hence, it is clear that the acknowledgment was
made in violation of the notarial law.

Time and again, we have emphasized that notarization is not an empty routine. It converts a private document into a
public one and renders it admissible in court without further proof of its authenticity. A notarial document is by law
entitled to full faith and credit upon its face and, for this reason, notaries public must observe with the utmost care the basic
requirements in the performance of their duties.

Otherwise, the confidence of the public in the integrity of this form of conveyance would be undermined.

SPOUSES BENJAMIN SANTUYO AND EDITHA SANTUYO, complainants, vs. ATTY. EDWIN A. HIDALGO, respondent. [A.C. No.
5838. January 17, 2005]

Considering that the responsibility attached to a notary public is sensitive respondent should have been more discreet
and cautious in the execution of his duties as such and should not have wholly entrusted everything to the secretaries;
otherwise he should not have been commissioned as notary public.

For having wholly entrusted the preparation and other mechanics of the document for notarization to the
secretary there can be a possibility that even the respondent’s signature which is the only one left for him to do can be done
by the secretary or anybody for that matter as had been the case herein.

A.M. No. 02-8-13-SC

2004 Rules on Notarial Practice

What is an “acknowledgment”?

Rule II

SECTION 1. Acknowledgment. - "Acknowledgment" refers to an act in which an individual on a single occasion:

(a) appears in person before the notary public and presents an integrally complete instrument or document;
 (b) is attested to be personally known to the notary public or identified by the notary public through competent
evidence of identity as defined by these Rules; and

(c) represents to the notary public that the signature on the instrument or document was voluntarily affixed by him
for the purposes stated in the instrument or document, declares that he has executed the instrument or document as
his free and voluntary act and deed, and, if he acts in a particular representative capacity, that he has the authority to
sign in that capacity.

What is “Affirmation or Oath”?

SEC. 2. Affirmation or Oath. - The term "Affirmation" or "Oath" refers to an act in which an individual on a single occasion:

(a) appears in person before the notary public;

(b) is personally known to the notary public or identified by the notary public through competent evidence of identity
as defined by these Rules; and

(c) avows under penalty of law to the whole truth of the contents of the instrument or document.

What is “copy certification”?

SEC. 4. Copy Certification. - "Copy Certification" refers to a notarial act in which a notary public:

(a) is presented with an instrument or document that is neither a vital record, a public record, nor publicly recordable;

(b) copies or supervises the copying of the instrument or document;

(c) compares the instrument or document with the copy; and

(d) determines that the copy is accurate and complete.

What is “jurat”?

SEC. 6. Jurat. - "Jurat" refers to an act in which an individual on a single occasion:

(a) appears in person before the notary public and presents an instrument or document;

(b) is personally known to the notary public or identified by the notary public through competent evidence of identity
as defined by these Rules;

(c) signs the instrument or document in the presence of the notary; and

(d) takes an oath or affirmation before the notary public as to such instrument or document.

Competent Evidence of Identity:

SEC. 12. Competent Evidence of Identity. - The phrase "competent evidence of identity" refers to the identification of an
individual based on:

(a) at least one current identification document issued by an official agency bearing the photograph and signature
of the individual; or

(b) the oath or affirmation of one credible witness not privy to the instrument, document or transaction who is
personally known to the notary public and who personally knows the individual, or of two credible witnesses
neither of whom is privy to the instrument, document or transaction who each personally knows the individual and
shows to the notary public documentary identification.
ILLUSTRATIONS [ ACKNOWLEDGMENT e.g. required in “contracts” and other “deeds of conveyances”]:

 I. Example of Par. (a) i.e. identity is proven by one current I.D. issued by an official agency.

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU ) S.s.

BEFORE ME A NOTARY PUBLIC, for the City of Cebu, personally came and appeared MATEO CABALUNA,
whose identity is proven by his Non-Professional Driver’s License No. 12345 valid until September 2009 and
presented his CTC No. 7545 issued on 1/2/06 at Cebu City, Philippines, and who acknowledged to me that the same is
his free and voluntary act and deed.

WITNESS MY HAND AND SEAL, this__day of June 2006 at Cebu City, Philippines.

NOTARY PUBLIC

II. Example of Par. ( b) where individual IS PERSONALLY KNOWN to the NOTARY PUBLIC.

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU ) S.S.

BEFORE ME A NOTARY PUBLIC, for the City of Cebu, personally came and appeared MATEO CABALUNA, who
is personally known to me to be the person who executed the foregoing instrument and presented his CTC No. 7545
issued on 1/2/06 at Cebu City, Philippines, and who acknowledged to me that the same is his free and voluntary act
and deed.

This instrument consisting of two (2) pages, including this page on which this acknowledgement, relates to a
sale of a parcel of land situated at 981-B Upper Suran, E. Sabellano St., Barangay Kinasang-an, Cebu City, Philippines.

WITNESS MY HAND AND SEAL, this__day of June 2006 at Cebu City, Philippines.

NOTARY PUBLIC

III. Example of Par. (b) where individual does not have an I.D. and whose identity is proven affirmation or oath of one
credible witness personally known to the notary public.

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU ) S.S.

BEFORE ME A NOTARY PUBLIC, for the City of Cebu, personally came and appeared MATEO CABALUNA, who
is personally known by JOSE CRUZ who is personally known to me and personally knows the principal to be the
person who executed the foregoing instrument and presented his CTC No. 7545 issued on 1/2/06 at Cebu City,
Philippines, and who acknowledged to me that the same is his free and voluntary act and deed.

This instrument consisting of two (2) pages, including this page on which this acknowledgement, relates to a
sale of a parcel of land situated at 981-B Upper Suran, E. Sabellano St., Barangay Kinasang-an, Cebu City, Philippines.

WITNESS MY HAND AND SEAL, this__day of June 2006 at Cebu City, Philippines.

Requirement of "oath" or "affirmation"

In this case, considering that the identity of the principal is attested to by another individual, the latter has to execute
a SEPARATE oath or affirmation, as follows:
 OATH OR AFFIRMATION

I,) I JOSE CRUZ, of legal age, Filipino, and a resident of B.Rodriguez St., Cebu City, affirm under penalty of law, that the
following statements are true:

2.) That MATEO CABALUNA is the same person named in the (name of instrument).

2)That MATEO CABALUNA is personally known to the undersigned witness.

3) That MATEO CABALUNA does not possess a current identification document issued by an official agency as
required under the Rules on Notarial Practice

4) That the undersigned witness is not privy to the (name of instrument)

IN WITNESS WHEREOF, I have hereunto affixed my signature this__day of November 2007 at Cebu City, Philippines.

JOSE CRUZ

SUBSCRIBED AND SWORN TO BEFORE ME this__day of November 2007 at Cebu City, Phil.

NOTARY PUBLIC

III. Example of Par. ( b) where individual does not have an I.D. and identity is proven by two credible witnesses with
documentary identification.

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU ) S.c.

BEFORE ME A NOTARY PUBLIC, for the City of Cebu, personally came and appeared MATEO CABALUNA, who
presented his CTC No. 7545 issued on 1/2/06 at Cebu City, Philippines, whose identity is established through:

JOSE CRUZ with Driver’s License No. 2345 valid until September 2009

GEMMA CRUZ with Driver’s License No. 5678 valid until October 2009

both of whom personally know the principal to be the one who executed the foregoing instrument and who
acknowledged to me that the same is his free and voluntary act and deed.

This instrument consisting of two (2) pages, including this page on which this acknowledgement, relates to a sale of a
parcel of land situated at 981-B Upper Suran, E. Sabellano St., Barangay Kinasang-an, Cebu City, Philippines.

WITNESS MY HAND AND SEAL, this__day of June 2006 at Cebu City, Philippines.

NOTARY PUBLIC

AGAIN, in this example, there is a requirement of an “oath” or “affirmation” by the two witnesses, Jose Cruz, and
Gemma Cruz, because the identity of the principal is established through them.

BAR QUESTION 2007:

VII.

(Total 10%)

(a) What evidence of identity does the 2004 Rules on Notarial Practice require before a notary public can
 officially affix his notarial seal on and sign a document presented by an individual whom the notary public does not
personally know? (5%)

WHO ARE AUTHORIZED TO ADMINISTER AN "OATH"?

REPUBLIC ACT No. 6733, amending Sec. 41 of Book I ( ADMINISTRATIVE CODE OF 1987)

Officers Authorized to Administer Oath. –

1. President; Vice-President;

2. Members and Secretaries of both Houses of the Congress;

3. Members of the Judiciary;

4. Secretaries of Departments;

5. Provincial governors and lieutenant-governors;

6. City mayors; municipal mayors;

7. Bureau directors; regional directors;

8. Clerks of courts; registrars of deeds; and other civilian officers in the Philippine public service whose
appointments are vested in the President of the Philippines and are subject to confirmation by the Commission on
Appointments;

9. All other constitutional officers;

10. Notaries public.

 ILLUSTRATIONS [ JURAT e.g. required for Affidavits, sworn statements etc. ]

I. Example of Par. (a) i.e. identity is proven by one current I.D. issued by an official agency.

SUBSCRIBED AND SWORN TO BEFORE ME by MATEO CABALUNA, whose identity is proven by his Non-
Professional Driver’s License No. 12345 valid until September 2009 and presented his CTC No. 7545 issued on
1/2/06 at Cebu City, Philippines, that he is the same person who executed the foregoing affidavit before me and
acknowledged that he executed the same.

NOTARY PUBLIC

II. Example of Par. ( b) where individual IS PERSONALLY KNOWN to the NOTARY PUBLIC.

SUBSCRIBED AND SWORN TO BEFORE ME by MATEO CABALUNA, who is personally known to me and presented his
CTC No. 7545 issued on 1/2/06 at Cebu City, Philippines, and who is the same person who personally signed before
me the foregoing affidavit and acknowledged that he executed the same.

NOTARY PUBLIC

III. Example of Par. (b) where individual does not have an I.D. and whose identity is proven affirmation or oath of one
credible witness personally known to the notary public.

SUBSCRIBED AND SWORN TO BEFORE ME by MATEO CABALUNA, who is personally known by JOSE CRUZ who is
personally known to me and who personally knows the principal and presented his CTC No. 7545 issued on
1/2/06 at Cebu City, Philippines, that he is the same person who executed the foregoing affidavit and acknowledged
that he executed the same.

NOTARY PUBLIC
IV. Example of Par. ( b) where individual does not have an I.D. and identity is proven by two credible witnesses with
documentary identification.

SUBSCRIBED AND SWORN TO BEFORE ME by MATEO CABALUNA, whose identity is established through:

JOSE CRUZ with Driver’s License No. 2345 valid until September 2009

GEMMA CRUZ with Driver’s License No. 5678 valid until October 2009

both of whom personally know the principal that he is the same person who executed the foregoing affidavit
before me and presented his CTC No. 7545 issued on 1/2/06 at Cebu City, Philippines, and acknowledged that he
executed the same.
SPECIAL CLAUSES IN CERTAIN CONTRACTS

ACCELERATION CLAUSE (Usually found in Loan Forms, Promissory Notes etc.)

“If Party A shall fail to pay the principal, any installment or interest thereon, under this Agreement then, and in any such event,
Party B may, by notice to Party A, declare all amounts payable under this agreement…..”

ARBITRATION CLAUSE ( Articles 2042 to 2046 of the New Civil Code; Republic Act No. 876 a.k.a. “The
Arbitration Law”)

What is “arbitration”? ( Section 2 of RA 876)

“Two or more persons or parties may submit to the arbitration of one or more arbitrators any controversy existing
between them at the time of the submission and which may be the subject of an action, or the parties to any contract may in
such contract agree to settle by arbitration a controversy thereafter arising between them”

“ If the parties hereto are unable to resolve by mutual agreement any dispute or controversy between them concerning this
agreement, the parties agree that the dispute or controversy shall be finally settled by mandatory, binding arbitration. Costs of
arbitration shall be borne by the parties in accordance with the decision of the arbitrators. Judgment upon the award rendered
shall be entered into any court having competent jurisdiction thereof….”

BAR QUESTION 2007:

X.

(10%)

Prepare an arbitration clause to be included in a contract.

ESCALATION CLAUSE

In what cases may this be incorporated?

Art. 1250. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the
currency at the time of the establishment of the obligation shall be the basis of payment, unless there is an agreement to the
contrary. (n)

“There shall be added [ or deducted] to the contract price such sums in respect of rise or fall in the cost of labor
and/or materials or any other matters affecting the cost of the execution of the works.”

EXCLUSIVITY CLAUSE

“During the period of this contract, Party B undertakes to provide services exclusively to Party A and to devote his
time, skill and attention to the engagement during the term of this agreement. Party B will perform no services to any other
entity which may constitute a conflict of interest with his services to Party A. Party A shall have sole discretion to determine if
such conflict of interest exists.”

NON-COMPETITION CLAUSE

“Employee agrees that during the term of this Agreement , he will not render services as an employee or consultant to, nor
invest or acquire any interest in, any corporation or any other business organization, a substantial portion of the business of
which is the same as, related to, or complementary to the business of the Company or its affiliates or subsidiaries……”

RETENTION CLAUSE
 “The employer shall be entitled to retain five percent (5%) of the value of the works until the employer has issued to
the contractor the final certificate of payment.”

CONFIDENTIALITY CLAUSE

“Employee shall not during, or at any time after the termination of his/her employment with the Employer, use for
himself/herself or others, or disclose or divulge to others including future employees, any trade secrets, confidential
information, or any other proprietary data of the Employer in violation of this agreement.”

RIGHT OF FIRST REFUSAL CLAUSE

BAR QUESTION 2007:

VIII.

Prepare a clause stipulating a right of first refusal to be embodied in a contract of lease, in case of sale of the property leased.
(10%)

“RIGHT OF FIRST REFUSAL. If during the term, or any extensions thereof, the LESSOR shall receive a bona fide offer to
lease the LEASED PREMISES which offer is acceptable to LESSOR, LESSOR agrees to keep this lease contract intact and shall
not transfer, convey, lease, assign any right that will affect this lease contract between herein LESSOR and LESSEE to any
transferee, lessee, assignee, designee or nominee.

“If upon the expiration of the term, or any extension thereof and within twelve (12) months from expiration of the
term or any extension thereof, LESSOR shall receive a bonafide offer to lease the LEASED PREMISES which offer is acceptable
to LESSOR, LESSOR agrees that LESSEE shall have the right of pre-emption and is hereby granted the right of first refusal to
lease the LEASED PREMISES at the same rental rate per square meter and term as offered in said bonafide offer. ……..”

Another example:

“OPTION TO PURCHASE. If during the term of this lease or any extension thereof, LESSOR shall receive a bona fide
offer to purchase the LEASED PREMISES as a whole, which offer is acceptable to LESSOR, LESSOR agrees that LESSEE shall
have the right of pre-emption and is hereby granted an option to purchase the LEASED PREMISES upon the same terms and
conditions stated in said offer

MOST FAVORED CUSTOMER CLAUSE

“If during the term of this Agreement, Party A sells [ state commodity] to any third party, under substantially similar
circumstances and conditions, at charges and/or upon terms and conditions which are more favorable that those effective
pursuant to this Agreement, then Party A shall immediately notify Party B, and such more favorable prices, terms and/or
conditions shall apply under this Agreement….”

LITIGATION CLAUSE

“In the event of any court action between the parties herein arising out of or in relation to any of the terms and
condition of this contract, the same shall be filed in the proper court of (state court territory), to the exclusion of all other
courts.”

SEVERABILITY CLAUSE

“If any one or more of the provisions of this contract is declared invalid or unenforceable in any respect under any
applicable law the validity, legality or enforceability of the remaining provision contained herein shall not in any way be
affected or impaired.”

NO WAIVER CLAUSE

“The failure of any party to insist upon a strict performance of any of the terms, conditions and covenants hereof shall not be
deemed a relinquishment or waiver of such terms, conditions or covenants, granted to such party, nor shall it be construed as a
condonation of any subsequent breach or default of the terms, conditions and covenants hereof, and the subsequent
acceptance of rent by the LESSOR shall not be deemed to be a waiver of any prior knowledge of such breach at the time of
acceptance of such rent.”

“ No waiver by the LESSOR of any of its rights under this contract shall be deemed to have been made unless expressed in
writing and signed by the LESSOR.”

ATTORNEY’S FEE CLAUSE

ATTORNEY’S FEE. Any violation of the terms, conditions, covenants and agreements hereof by any of the parties hereto shall
be brought to the proper courts of________________ and will entitle the offended party to damages, attorney’s fee and cost of suit.

VENUE CLAUSE

“In the event of any court action between the parties herein arising out of or in relation to any of the terms and
condition of this contract, the same shall be filed in the proper court of (state court territory), to the exclusion of all other
courts.”

RULE OF CONSTRUCTION CLAUSE

(How the terms of a contract shall be interpreted in case of conflict of interpretation of its provisions?)

Example:

“This contract shall be construed, interpreted and governed by the laws of the Philippines.”
CONVEYANCING DEFINED:

A. Conveyancing refers to the transfer of title to land from one to another, or class of persons, to another by deed.

It also includes:

ASSIGNMENT, LEASE, MORTGAGE, ENCUMBRANCE OF LAND.

B. CONVEYANCE- Everything by which any estate or interest in estate is created, alienated, mortgaged, or assigned.

BASIC ELEMENTS OF A CONVEYANCE:

• GRANTOR

• GRANTEE

• DESCRIPTION OF THE PROPERTY INVOLVED

• STATEMENT OF THE CONSIDERATION

DISPOSITIVE CLAUSE OR WORDS OF GRANT

• SIGNATURE OF GRANTOR WITH AT LEAST TWO WITNESSES

• NOTARIAL ACKNOWLEDGMENT

Contract always begins with a title or the name of the SPECIFIC DOCUMENT such as:

a) DEED OF SALE

b) DEED OF MORTGAGE

c) DEED OF DONATION

d) DEED OF ASSIGNMENT

GRANTOR( e.g. Seller, Transferor, Assignor, Donor, Mortgagor etc.

Example:

“EUFEMIO MARIO RUIZ, of legal age, Filipino citizen, and a resident of Talibon, Bohol, hereinafter to be referred to as the
VENDORS.”

GRANTEE ( Buyer, Transferee,Assignee, Donee, Mortgagee etc.)

“SPOUSES LYNDE C. LAMBO and NILDA RUIZ LAMBO, of legal age, Filipinos, and residents of 328-N Gorordo Avenue, Cebu
City, hereinafter referred to as the VENDEE.”

DESCRIPTION OF PROPERTY INVOLVED( in other words the subject matter of the contract)

“WHEREAS, the VENDOR is the absolute and registered owner of a parcel of land located at Barangay Maayongtubig,
Municipality of Dauin, Negros Oriental covered by Transfer Certificate of Title No. FT-6639 of the Register of Deeds of Negros
Oriental and more particularly described as follows:

DESCRIPTION OF PROPERTY INVOLVED( in other words the subject matter of the contract)
“ A parcel of land (Lot 7072-B, of the subdivision plan Psd-07-033185, being a portion of lot 7072, pls-759), situated in the
Barrio of Maayong-tubig, Municipality of Dauin, Province of Negros Oriental. Bounded on the west along line 1-2, by Lot 7088,
Pls-759; on the NW. along line 2-3, by Lot 7071, Pls-759; on the North along line 3-4, by Lot 7036, Pls-759, on the NE etc…..”

STATEMENT OF CONSIDERATION

“For and in consideration of the sum of ONE MILLION PESOS (P1,000,000.00) Philippine Currencyreceipt whereof is hereby
acknowledgmed to the entire satisfaction of the VENDOR……………”

DISPOSITIVE CLAUSE OF WORDS OF GRANT

If Deed of Sale:

“the VENDOR hereby SELLS, TRANSFERS, AND CONVEYS by way of absolute sale unto the VENDEES, their heirs,
assigns, and successors-in-interests, the above-described parcel of land and the improvements existing thereon as
likewise above-described.”

If Deed of Mortgage:

“That for and in consideration of this indebtedness and to assure the performance of said obligation to pay, the
MORTGAGOR hereby conveys by way of CHATTEL MORTGAGE unto the MORTGAGEE, his heirs, and assigns, the
following personal property now in the possession of said MORTGAGOR”

If Deed of Donation:

“ That for and in consideration of the love and affection which the DONEE inspires in the DONOR, and as an act of
liberality and generosity, the DONOR hereby voluntarily and freely gives, transfers and conveys, by way of donation,
unto said DONEE, his heirs, executors and assigns, all of the right, title and interest which said DONOR has in the
above-described real property, together with all the buildings and improvements found therein, free from all liens
and encumbrances and charges of whatsoever nature”

SIGNATURE OF GRANTOR WITH AT LEAST TWO WITNESSES

EUFEMIO MARIO RUIZ

VENDOR

WITNESSES :

_____________ ______________

NOTARIAL ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

CITY OF CEBU ) S.S.

BEFORE ME A NOTARY PUBLIC, for the City of Cebu, personally came and appeared MATEO CABALUNA, who
is personally known to me to be the person who executed the foregoing instrument and presented his CTC No. 7545
issued on 1/2/06 at Cebu City, Philippines, and who acknowledged to me that the same is his free and voluntary act
and deed.
FORMS FOR CONVEYANCING

Sec. 112. Forms in conveyancing. ( PRESIDENTIAL DECREE No. 1529 otherwise known as the “Property Registration
Decree”))

Xxxx . Deeds, conveyances, encumbrances, discharges, powers of attorney and other voluntary instruments,
whether affecting registered or unregistered land, executed in accordance with law in the form of public
instruments shall be registrable:

Provided, That, every such instrument shall be signed by the person or persons executing the same in the
presence of at least two witnesses who shall likewise sign thereon, and shall acknowledged to be the free act and deed
of the person or persons executing the same before a notary public or other public officer authorized by law to take
acknowledgment.

Rule when “instrument” consist of two (2) pages:

1. Each page of the copy xxx xxx, shall be signed on the left margin thereof by the person or persons executing the
instrument and their witnesses, and all the pages sealed with the notarial seal.

2. This fact as well as the number of pages shall be stated in the acknowledgment.

3. Where the instrument acknowledged relates to a sale, transfer, mortgage or encumbrance of two or more parcels of
land, the number thereof shall likewise be set forth in said acknowledgment.