Memorandum Of Agreement

If you are a foreigner and planning of buying properties here in the Philippines but reluctant about the consequences that your Filipino partner will dispose the property without your consent simply because you cannot own real properties here, then the Memorandum of Agreement is for you.

A Memorandum of Agreement is something like the terms and conditions of both parties where for example the First Party(the buyer's name on the Deed of Absolute Sale) cannot sell the property without the authorization of the Second Party(let's say the foreigner). Its up to the parties involved to state their terms. Usually the one who make the Deed of Absolute Sale is the one creating this document for a fee. In our case, we paid Php1,000 for the notarization fees.

Then both parties are asked to sign the document before bringing it to the notary public. The notary will keep a record of himself too. It is consist of 3 copies.

After this, the money you spent to that real property is secured.