Share

Annex D Affidavit of Warranties

NHMFC template for affidavit of warrenties

Your Browser Doesn't Support Canvas. Showing the Text Content of the PDF Instead: Annex D (CTS)
REPUBLIC OF THE PHILIPPINES)
) S.S.
AFFIDAVIT OF WARRANTIES
(Contract to Sell)
I, Click here to enter text., of legal age and with business address at Click here to
enter text., under oath, hereby depose and state that:
1. I am the President and the duly authorized representative of Click here to enter text.
(hereinafter “DEVELOPER”), a corporation duly organized and existing under the laws
of the Republic of the Philippines with principal place of business located at Click
here to enter text.;
2. The DEVELOPER is engaged in the business of developing real estate/subdivision
projects;
3. The DEVELOPER is the absolute and registered owner of parcels of land which it has
developed as a subdivision/condominium project located at Click here to enter text.;
4. The DEVELOPER has sold in installments the house and lot, by way of a Contract to
Sell (“CTS”) covered by the subdivision project named as Click here to enter text. and
located at Click here to enter text., with an area of Click here to enter text. square
meters with unit design Click here to enter text. to Click here to enter text. (hereinafter
"BUYER");
5. In behalf of DEVELOPER, I hereby warrant that:
a. The BUYER in the abovementioned CTS is qualified to purchase the property and
has the financial capability and willingness to pay his/ her monthly amortizations
as they will fall due;
b. In that connection, we have exercised due diligence in determining the
qualification and financial capacity of the BUYER;
c. The DEVELOPER is duly-licensed and the subdivision project in which the unit
subject of the CTS forms part is duly registered;
d. The DEVELOPER has the technical know-how and has exercised proper diligence
in the verification of the title/ownership over the property involved and that the
title/documents of ownership, from which it derives its title contain no vitiating
defects which could have been found or discovered with the exercise of proper
diligence and technical skill;
e. The title of the property subject of the Contract to Sell is in the name of the
DEVELOPER, and is free from any lien and/or encumbrance; the subject CTS is
legal, valid and binding; and, the consent of the parties therein was not vitiated or
secured by fraud;
f.

The housing units covered by the subject CTS has no structural defects and the
materials used in the construction thereof has passed the standards set forth by
appropriate agencies;

g. The land where the housing unit is constructed is free from hidden defects and is
fit for the use for which it was intended;
h. The land where the housing unit is constructed is free from any defect that may
arise from the development thereof, and is developed in accordance with existing
government standards;
i.

Under the subject CTS, DEVELOPER is authorized by the buyer to, at any time,
unilaterally assign, cede or transfer his/her CTS rights/receivables from the
BUYER, to any third party, without need of any notice and without incurring any
Revised 03/17/14

1

liability thereon; and,
j.

The BUYER and the property covered under the subject CTS are adequately
insured under existing Life/Sales Redemption Insurance ("SRI") and Fire and
Lightning Insurance, which are required of the BUYER under the subject CTS;

6. In the event of breach of any of the above warranties, we hereby agree and
undertake to buy-back the affected/defective CTS/loan from NHMFC, or to
replace/substitute the same with an equally qualified CTS/loan acceptable to the National
Home Mortgage Finance Corporation (“NHMFC”), whichever is required by NHMFC at its sole
option, or its assignees, transferees or successors in interest;
7. We further agree and undertake to Buy-back or replace the subject CTS, whichever
is required by NHMFC at its sole option, under any of the following circumstances:
a. Failure of the BUYER to pay his/her monthly amortizations for three
(3) consecutive months as stipulated in the CTS (inclusive of the two
[2] months grace period under Sec. 4, R.A. No. 6552, in which case
he/ she is considered in default;
b. In case of a structural defect, or a case is brought by the BUYER
against the DEVELOPER before any judicial/quasi-judicial agency for
alleged structural defects;
c. A decision from a court of competent jurisdiction is issued declaring
the title/collateral covered by the CTS as defective, and/or declaring
the CTS as null and void;
d. In the event the DEVELOPER and/or BUYER mortgages or puts up
the subject Property as security for a real estate loan, or in any way
constitutes a lien and/or an encumbrance thereon, after assignment
of the CTS to NHMFC and/or within the time when the buyer is
making the installment payments on the subject property;
e. In the event the buyer obtains financing/refinancing from a bank or
any other financial institution;
f.

In the event of sale, assignment, transfer, conveyance, cession,
encumbrance of the rights, interests, and/or obligations under the
subject CTS, by the BUYER to a third person;

g. If at any time before full payment by the BUYER of the total contract
price and all other obligations arising from the subject CTS, the
government or any of its agencies or instrumentalities, or any public
utility, expropriates the Property or any portion thereof;
h. In case the Property covered by the subject CTS is subject to tax
foreclosure;
i.

In the event the subject Contract to Sell is not converted to Real
Estate Mortgage (REM) within two (2) years from assignment thereof to
NHMFC;

j.

In case of rescission or cancellation of the subject CTS; and,

k. Any other event/circumstance that renders the CTS defective and/or
subject to buy back by the DEVELOPER, as set forth in the Deed of
Assignment of Receivables with Recourse.
8. We likewise undertake to pay any tax assessment and/or fees and other
charges/expenses arising from the assignment/sale of the property;
9. We further agree and undertake to hold NHMFC free and harmless from any and
all liabilities arising from Republic Act No. 6552, otherwise known as the Maceda Law, in
case of cancellation of the Contract to Sell for non-payment and/or violation of any
provisions of the Contract To Sell by the BUYER.

Revised 03/17/14

2

10. The Developer shall cause the change of beneficiary under the SRI and Fire and
Lightning Insurance policies, to NHMFC in lieu of the DEVELOPER, immediately upon
assignment of the Contract to Sell to NHMFC. However in case any of the perils/risks
insured against occurs before such change of beneficiary takes effect, the DEVELOPER
undertakes to assign all insurance proceeds thereof to NHMFC.
11. The DEVELOPER agrees that it may be required to submit in favor of NHMFC,
additional securities/collateral to cover defaults, defects or deficiencies which may arise from
the originated CTS/loan;
12. The DEVELOPER warrants that it has read, and hereby agrees to abide by,
NHMFC’s HLRPP Guidelines and requirements, including any and all supplementary
circulars and amendments thereto; and
13. This Affidavit is executed to attest to the truth of the foregoing and for whatever
legal purpose and intent it may serve.
IN WITNESS WHEREOF, I hereby sign this Affidavit this ______ day of ______________
at _______________.

____________________________
(Signature above printed name)
Affiant

SUBSCRIBED AND SWORN to before me this ____ day of _______________ at
____________________, affiant exhibiting to me his/ her government-issued identification card,
to wit _________________________________.

Doc. No.
Page No.
Book No.
Series of

_____;
_____;
_____;
_____.

Revised 03/17/14

3
 
Page of
Share