By: Atty. Jeremy O. Panganiban
The common documents known to realtors like me are Contracts to Sell which we term as CTS, for brevity, and the all popular Deed of Absolute Sale which we name DOAS by way of abbreviation. In contrast, a Deed of Exchange is an often neglected, unused, and uncommon document to real estate brokers and lawyers alike.
In a not so technical point of view, a Deed of Exchange is a document by which a property is transferred for another property. But it is also a mode of transfer by which property is exchanged in place of another property sold by mistake. To illustrate, this second definition and its purpose gain importance and relevance when the seller and the buyer agree to sell to the buyer “Lot A.” Yet, what is actually indicated and sold in the DOAS through oversight is “Lot B,” which is also owned by the same seller. To rectify the error, a DOAS should not be executed or else there will be a duplication of transactions. Instead, a replacement or swap/switch between Lot B for Lot A is made through the facility of a Deed of Exchange.
In order to have a better understanding of this mode of transfer, quoted hereunder is a sample form taken from the Real Estate Brokers Association of the Philippines (REBAP) which I revised a bit, as follows:
I am hoping that this information will assist you in understanding and appreciating real estate law and contracts in the Philippines.