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Sample Rent-To-Own Contract or Contract of Lease with Option to Purchase (CLOP), Philippine Version

As promised, I am sharing a sample Rent-To-Own contract specifically for use here in the Philippines. A Rent-To-Own contract is more correctly referred to as a Contract of Lease with Option to Purchase or CLOP.This is similar to lease option contracts used in other countries like the US.

The sample rent-to-own contract can be found here: https://www.foreclosurephilippines.com/2009/04/19-free-legal-forms-and-contracts-from.html

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43 thoughts on “Sample Rent-To-Own Contract or Contract of Lease with Option to Purchase (CLOP), Philippine Version”

  1. Emmanuel Jimenez Caballes

    Hello! Mr Jay,could you please send to my yahoo email address ([email protected]) regarding form of AUTHORITY TO LEASE W/ SPECIAL POWER OF ATTORNEY. Because I wanted to rent/lease my Townhouse unit, and my duly authorize representative will be
    my Atty-In-Fact/Agent.Thanks much….

  2. Arkei Quintana

    Hi Jay,

    I’m a newly licensed Real estate broker and I love reading your posts, actually it is in you’re page where I got some of my reviewer and it helped me a lot during the licensure exam. I have browse this topic lately and I know this is much of a request but can you post an advise or any technique you have on how to offer a property for lease to banks or big corporate restaurants like Jollibee or Mcdonalds will be a very big help. Thank you and God Bless.

    Arkei Quintana

  3. Hi Jay,

    Assuming I am a commercial lot owner and I decide to lease the same to an interested lessee introduced by a licensed broker. How much commission can the broker charge me? Lease is on a long term basis because the lot is quite big. If for example the monthly lease amounts to say P 3M/mo, can I deviate from the standard in paying the broker for his commission? Thanks

    emer

  4. Hi Jay,

    Thanks for posting this. I’m about to take the real estate broker exam, and the thought of asking this came to mind:

    Do I understand correctly that based on item #7a on the sample CLOP that the lessee cannot hope to accelerate his/her monthly lease and thus own the RTO property even before the maximum term of the lease ends?

    1. Hi Joel, first of all, congratulations for passing the real estate board exams!

      As for section 7a, it’s not meant to prevent the tenant-buyer from accelerating payments. It just ensures that if he does pay the NROC and the monthly rentals on time, he can exercise his option to purchase. Excess payments can and should be credited to the principal and this should be added to the CLOP, as long as both parties agree on this.

      Thanks for the question, cheers!

      1. Thanks Jay! (You actually looked up my name on the list ? )

        One thing that I learned from taking our Real Estate classes was that the Maceda Law encompasses residential installment sales.

        So I have a followup question: if a buyer under the RTO contract does
        1. accelerate his/her payments, and
        2. such excess payments are credited to the principal, and
        3. does so for at least 2 years

        It may then qualify the RTO (perhaps in court) as an installment sale and the buyer would then qualify under the Maceda Law to receive those excess payments back if he/she is no longer able to pay. What do you think?

  5. Hi Jay,

    I purchased a condo on a pre-selling and I already paid 2 years for that. The condo will be turned-over in 2011.

    I am just wondering, can I sell my condo unit even if I have not fully paid it yet?

    What are the things that I need to do (other than finding a new buyer)?

    Can I sell it to a new buyer on bank financing, say 15 years?

    Thanks Jay….

    1. Hi Em, yes, you should be able to sell by assigning your rights or by having your buyer assume your balance. Bank financing should be no problem as long as the developer agrees and the buyer can qualify for bank financing.

  6. hi there could i ask if you know some law in the philippines that saying,you cant own the house or land that you rent for morethan 20 years because my brother ask me to look for it in the internet but i not lucky to find it. can you help me please thank you

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