BUILD LEASE OWN CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This BUILD LEASE OWN CONTRACT is entered into, by and between:

ARCHITECT PAUL G. MOSQUERA, of legal age, married, Filipino,

(hereinafter known as “ARCH. MOSQUERA” for short), and resident of
Ganzon Compound Brgy. Tacas, Jaro, Iloilo City, through his company
registered and known as “__________________” hereinafter to be
known as the “BUILDER”,

-And -

_______________, of legal age, married, Filipino, (hereinafter

known as “________________” for short), and resident of
________________, Iloilo City hereinafter to be known as the “LESSEE”,

Witnesseth that:

WHEREAS, the “BUILDER” is the registered owner of parcels of

land known and identified as Lot No. ______ which consists of _______
square meters and Lot No. _________ which consists of _____________,
covered by Transfer Certificate of Title Nos. T-____________ and T-
_________________ both of which are registered in the name of the
“BUILDER”;

WHEREAS, the “LESSEE”, is bent on leasing a house and lot with

the end in view of acquiring ownership over the same upon the
termination of the lease agreement;

WHEREAS, the “LESSEE” having his/ her “dream house” in mind,

intends to play a major role in the conceptualization of the house which
will be constructed, to be designed, financed, and built by the
“BUILDER”;

WHEREAS, the “LESSEE” envisions to own that house once built on

Lot Nos. __________________ which consists of _______ square meters
and Lot No. _________ which consists of _____________, covered by
Transfer Certificate of Title Nos. T-____________ and T-

Page 1 of 10
_________________ both of which are registered in the name of the
“BUILDER”;

WHEREAS, the parties come unto an agreement relative to the

Build Lease and Own the terms of which are hereunder stipulated;

NOW THEREFORE, in consideration of the above-stated

stipulations, the parties hereunto enter into this Build Lease and Own
Contract, under the following terms and conditions:

I. APPENDAGES/ REFERENCES

I.1. Transfer Certificate of Title No ________ (Annex A)

I.2. Board Resolution dated _________ (Annex B)
I.3. Terms of Reference (Annex C)
I.4. Specifications/ Perspective (Annex D)
I.5. Floor Plans (Annex E)
I.6. Pricing/ Costing (Annex F)
I.7. Stages/ Progression of Work/ Renovation (Annex G)

II. WORK DESCRIPTION

II.1. The parties have firmly agreed in respect to the identied lot
known as Lot No. ___________ covered by Transfer Certificate
of title No. _____________ consisting of _____ sq. ms. To be the
site/ location of the herein contemplated project known as
Build Lease and Own Contract;

II.2. Upon the signing hereof, the parties are in agreement that the
“BUILDER” will immediately commence the construction of the
residential house/ unit as detailed in the engineering/ architerual
plans mentioned in para. 1 hereof;

II.3. The scope of work includes the following:

Those stated in the Stages/ Progression of Work (Annex F)

II.4. The scope of work specifically excludes the following:

Page 2 of 10
 Those not included in Annex F.

II.5. Any scope of work that is neither specifically included nor

excluded but is necessary or reasonably incidental to the
project of renovation which will ultimately be beneficial to the
aesthetic or structural design of the project, provided it will not
cost the “BUILDER” beyond the approved budgetary allotment
of the project, shall be deemed included.

III. PERMITS

The ‘BUILDER” shall be solely responsible for the procurement of all

permits for

(1)Demolition permit
(2) Building permit
(3) Electrical permit
(4) Plumbing permit

(5) Fencing permit

IV. TIMETABLE (See Annex F)

Work to
Commence
on
First Stage
Second
Stage
Third
Stage

Page 3 of 10
V. Warranty

The “BUILDER” shall correct, at its’ own expense, any defects in the
Work due to faulty materials and/or workmanship pursuant to this
Contract for a period of ___ year(s) from the date of Full Completion.

The “LESSEE” shall give the “BUILDER” written notice of such defects
within a reasonable time, and in any event within the warranty period.

VI. STANDARDS OF WORK

The “BUILDER” agrees to supply all labour, materials and supervision

to complete the Work in accordance with the Contract Documents/
Terms of Reference and Specifications attached as Annexes hereof.

The “BUILDER” agrees to undertake all Work diligently in a good and

workmanlike manner, in accordance with good quality residential
standards and practices, and in compliance with any applicable
Building Code and all other authorities having jurisdiction.

The “LESSEE” accepts that there may be inconveniences from time to

time, and the “BUILDER” agrees to keep such inconveniences to a
reasonable minimum. It is the responsibility of the “LESSEE” to take
reasonable steps to provide a work area free of items/ obstructions,
and to remove or protect building/ household items in areas where it
may be reasonably anticipated by the “LESSEE” that they may be
subject to dust, damage or vibrations.

The “BUILDER” agrees to keep the site orderly and reasonably free
of debris. At the completion of the project, the “BUILDER” shall clean
the property and leave it fit for use. All equipment, materials, rubbish
and similar material incidental to the project shall be removed by the
“BUILDER”.

VII. Insurance/Performance Bond

Prior to commencing the Work, the “BUILDER” agrees to provide,

maintain and pay for insurance during the time the Work is being
performed, including commercial general liability in the minimum
amount of Php_______________ against claims for damages for
personal injury or property damage by reason of anything done or not
done by the “BUILDER”, its employees or agents, in connection with

Page 4 of 10
the performance of this Contract. The “BUILDER” will also provide
proof of automobile liability insurance. The “BUILDER” is responsible
for all materials on site provided by the “BUILDER” for the Work in
this Contract until installed.

VIII. Compliance with Workers' Compensation and Other Laws

The “BUILDER” is an independent contractor as he has sufficient

capital and works separately and independently of the “LESSEES”.
The “BUILDER” assumes sole and full responsibility for all labor
benefits of his workers and he declares that there is no employer-
employee relationship that is established, directly or indirectly,
between the “LESSEES” and the workers.

The “BUILDER” also agrees to comply with all laws, ordinances, rules,
regulations, codes and orders in force during the performance of the
Contract which relate to the preservation of public health or
construction safety.

IX. OBLIGATIONS OF PARTIES

9.1. LESSEE. Upon the signing of this Contract, the “LESSEE” binds
himself to pay the “BUILDER” a down payment of
Php________________ which represents payment for (advance lease
rentals, deposit etc). Upon completion of the construction, and the
residential house/ unit becomes habitable (which is expected to be on
_________________), the “LESSEE” shall forthwith occupy the same,
and pay monthly lease rentals of Php___________ per month to the
“BUILDER”, starting on _________________ and then every ____ day
of the succeeding months thereafter for (10/ 15 years). Upon full
payment, without default, the “LESSEE” entitled to the proper
transfer documents and the said “LESSEE” bear all the costs for
transfer of title to his name including but not limited to, capital gains
tax, transfer tax, documentary stamp taxes, land tax, and all other
expenses that will be incurred in the proper Bureau of Internal
Revenue, Assessor’s Office, and the Register of Deeds;

9.2. BUILDER. The “BUILDER” shall immediately turn-over possession

for purposes of occupancy, the residential house/ unit to the
“LESSEE” Upon completion of the construction, and the residential
house/ unit becomes habitable (which is expected to be on
_________________). Upon full payment of the total lease rentals for

Page 5 of 10
a period of (10/15 years), without default on the part of the “LESSEE”,
the “BUILDER” shall forthwith execute the corresponding transfer/
conveyance documents to the “LESSEE” including all board
resolutions/ secretary’s certificates, Deeds of Sale, and others.

X. DISPUTE RESOLUTION

The parties agree that in the event of a dispute as to the

interpretation of this Contract or the extent of the Work, the issues
shall be submitted to arbitration as agreed to by both parties or under
the province’s arbitration statute.

XI. DEFAULT BY LESSEE

The underlying obligation of the “LESSEE” is governed primarily by

the provisions of the Civil Code on Lease and Sale. In any case, the
“LESSEE” is obliged to be prompt in the payment of the down
payment as agreed upon, the deposit, if applicable, and more
importantly, the monthly rentals which are the lifeblood of the
progression of the construction of the “LESSEE’s” dream house.

DEFAULT/ GRACE PERIOD. Should the “LESSEE” therefore, default in

the payment of a single monthly rental, and he has already made an
equivalent payment of a total of two (2) years installments/ rentals,
the “LESSEE” shall be afforded a 30-day grace period from the time of
default for every one-year rental payments made. No written or oral
reminder is required as this grace period immediately commences to
run immediately upon the next day the default accrrues . The grace
period may be availed of only thrice (3x) in a period of five years.
Should the “LESSEE’S” rental payment fail to reach a total of two (2)
years installments/ rentals, the provisions of Republic Act No. 6552 or
the “Maceda Law”, will apply. It provides, viz:

Section 4. In case where less than two years of installments were

paid, the seller shall give the buyer a grace period of not less than
sixty days from the date the installment became due.

If the buyer fails to pay the installments due at the expiration of the
grace period, the seller may cancel the contract after thirty days from
receipt by the buyer of the notice of cancellation or the demand for
rescission of the contract by a notarial act.

Page 6 of 10
In the event that the “BUILDER” opts for cancellation, the following
will apply:

(b) If the contract is canceled, the seller shall refund to the buyer the
cash surrender value of the payments on the property equivalent to
fifty per cent of the total payments made, and, after five years of
installments, an additional five per cent every year but not to exceed
ninety per cent of the total payments made: Provided, That the actual
cancellation of the contract shall take place after thirty days from
receipt by the buyer of the notice of cancellation or the demand for
rescission of the contract by a notarial act and upon full payment of
the cash surrender value to the buyer.

Down payments, deposits or options on the contract shall be

included in the computation of the total number of installment
payments made.

Section 5. Under Section 3 and 4, the buyer shall have the right to sell
his rights or assign the same to another person or to reinstate the
contract by updating the account during the grace period and before
actual cancellation of the contract. The deed of sale or assignment
shall be done by notarial act.

It is understood that the seller is the “BUILDER” and the buyer is the
“LESSEE” as applied to the foregoing contract.

In the event that (a) the “LESSEE” does not perform his
obligations under this Contract in accordance with the terms of this
Contract and have not corrected the default within ___ days of
written notice by the Contractor, or (b) the “LESSEE” becomes
bankrupt or makes a general assignment for the benefit of its
creditors, or if a receiver of the “LESSEE” is appointed, or (c) if the
Work is stopped as a result of a court order or, expropriation
proceedings is commenced by any proper governmental agency, then
the “BUILDER” may cease work and treat the contract as repudiated
forthwith on the occurrence of such default.

In such event, the “LESSEE” shall VACATE the leased premises

within Fifteen (15) calendar days from written notice from the
“BUILDER”. Upon the lapse of the fifteen day period, the “BUILDER” ,
OR ANY OF HIS AUTHORIZED REPRESENTATIVES, upon the strength
of this Contract, shall be deemed an attorney-in-fact of the “LESSEE”
in terms of authority to force open the premises, safe-keep the
personal properties that may be found therein and/ or lock the same.

Page 7 of 10
 The “LESSEE” hereby foregoes, remises and forever waives any
right of action, including any criminal implication of any action as
stated in the preceding paragraph.

XII. DEFAULT BY BUILDER

The “BUILDER”, upon his own instance and volition, undertakes to

secure a loan facility from a bank of his choice for such amount that
he deems sufficient to ensure that the build lease own project is
accomplished within the time-frame established herein without any
untoward delay. The amount of loan obtained will be used to advance
costs of labor and materials.

In the event that (a) the “BUILDER” does not perform the Work in
accordance with the terms of this Contract and has not corrected the
default within ___ days of written notice by the LESSEE, or (b) the
BUILDER becomes bankrupt or makes a general assignment for the
benefit of its creditors, or if a receiver of the BUILDER is appointed,
then automatically this contract shall be deemed terminated.

XIII. SIGNS

The LESSEE agrees to permit the BUILDER to display a sign on the

project site until completion.

This Contract shall not be assigned, in whole or in part, without the

prior written consent of the other party.

This Contract shall be governed by and construed under the laws of

the Country, City or Province in which the project is situated, and
supercedes all prior communications and agreements. There are no
other terms outside of this Contract save for those that the parties
may both agree upon in writing and duly notarized.

The BUILDER assures that there is not now any claim, action, contract,
rule or other circumstance which may interfere with the Contractor’s
ability to perform its obligations under this contract and he
undertakes to avoid any circumstance which would give rise to any
cause of action to any person, natural or juridical, to compromise his
performance efficiently and promptly in accordance with the terms
stated herein or contemplated by this Contract.

Page 8 of 10
 IN WITNESS WHEREOF, parties hereunto sign this Contract this
________ day of ___________________ at Iloilo City, Philippines.

______________________

By:

_____________________ ARCH. PAUL G. MOSQUERA

(ID No. ___________________) (I.D. No.
______________ )
BUILDER

Witnesses:

_______________________
__________________________
(Printed name & Signature) (Printed name & Signature)

I.D. NO./Date: _______________ I.D. No./Date:

_____________

REPUBLIC OF THE PHILIPPINES)

CITY OF ILOILO) Sc.
xx--------------------------------------xx

Page 9 of 10
 ACKNOWLEDGMENT

BEFORE ME personally appeared this _____ day of ________________

at ________________, the above-named persons who presented to me
their above indicated I.D.s and the above-witnesses who are personally
known to me or identified by me through competent evidence of identity
as defined by the Rules on Notarial Practice pursuant to Supreme Court
En Banc A.M. No. 02-8-13 SC Resolution. That the herein persons
represented to me that the signatures on this instrument or document
were voluntarily affixed by them as their free and voluntary act and deed
as they avowed under penalty of law to the whole truth of the contents
of the foregoing.

WITNESS MY HAND AND SEAL on the date and place first above-
written.

______________________
Notary Public

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2014.

Page 10 of 10