TORRES, ANDREA FEBRUARY 14, 2020

CABRADILLA, BRYAN BSA – 1A

How was the contract prepared or negotiated?

In this scenario, both parties involved in a property sale are looking to get the best deal.
The buyer (Ms. Andrea Torres) will want to get the property for the lowest price possible and the
seller (Mr. Bryan Cabradilla) will want to get the most amount of money possible for their
property. To get the win-win situation they wanted, it starts with the seller where she offers a
fair price and a fair offer as overpricing the property will only drive interest away. Then Bryan as
a buyer, he offering lower than the asking price can alienate the seller.

It means that asking and offering prices should be based on recent sales prices of comparable
homes in the local area. Both parties must respect and understand the priorities. Afterwards,
they achieve the win-win situation through negotiate the right deal with each other

How was the contract perfected?

When the buyer has already paid the full purchase price of the property and all the
underlying taxes such as the transfer tax, documentary stamp tax and all other fees related to
the registration process, the absolute deed of sale is prepared. As a legal instrument or document
evidencing a sale, the Deed of Absolute Sale should be also notarized. The deed serves as a proof
that the transfer occurred

How was the contract consummated?

The legal relationship between the buyer and the seller of land during the interim period
between the execution of the contract and the date of its consummation. A contract for the sale
of land property is executed when the seller and the buyer sign an agreement in which the seller
promises to convey ownership of the property to the buyer, who promises to pay an agreed sum.
The contract is consummated because seller already delivered the deed to the buyer and the
buyer pays the seller's price. The consummation of the contract is variously referred to as the
closing of escrow, the date of closing, or simply the closing.

Did the contract have to be in some form required by the law, why or why not?

Yes, because the deed of sale is a legal, a binding document proving that both buyer and
seller have reached an agreement of sale or purchase. With this, the deed of sale protects both
the buyer and the seller should disagreements or problems arise in the future. The document
should then be notarized by a lawyer, otherwise, it will have no power when presented to
authorities or court. As a result, it will defeat the main purpose of the deed of sale, which is
to protect both the buyer and the seller.
TORRES, ANDREA FEBRUARY 14, 2020
CABRADILLA, BRYAN BSA – 1A