The Real Estate Purchase and Sale Agreement is a fundamental legal instrument used in Indonesian property transactions to document and formalize the transfer of real estate ownership. This document is essential whenever there is a transfer of property ownership in Indonesia, whether for residential, commercial, or industrial purposes. It must comply with various Indonesian regulations, including the Basic Agrarian Law, property registration requirements, and tax regulations. The agreement typically includes detailed property descriptions, payment terms, warranties, and specific provisions required by Indonesian law. It must be executed before a Land Deed Official (PPAT) and registered with the local land office. The document is particularly important as it forms the basis for the official deed transfer (Akta Jual Beli) and subsequent property registration in Indonesia's land records.
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1. Parties: Identification of the seller and purchaser with complete legal names, addresses, and identification numbers as required under Indonesian law
2. Background: Context of the transaction, including brief description of the property and parties' intention to enter into a sale and purchase transaction
3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terms related to property rights
4. Property Details: Comprehensive description of the property including certificate number, land title type, address, boundaries, and registered area
5. Purchase Price: Agreed purchase price, payment structure, and payment mechanisms
6. Payment Terms: Detailed payment schedule, deposit requirements, and completion payment arrangements
7. Conditions Precedent: Conditions that must be satisfied before completion, including property checks and governmental approvals
8. Pre-Completion Obligations: Obligations of both parties before completion, including property maintenance and insurance requirements
9. Completion: Process for completion, including signing of deed transfer (AJB) before PPAT and registration requirements
10. Tax Obligations: Allocation of tax responsibilities including land and building tax (PBB) and transfer tax (BPHTB)
11. Representations and Warranties: Standard warranties about property ownership, absence of encumbrances, and authority to sell
12. Risk and Insurance: Transfer of risk and insurance obligations
13. Default and Termination: Consequences of default and termination rights
14. Governing Law and Dispute Resolution: Confirmation of Indonesian law governance and dispute resolution mechanism
15. Notices: Process for formal communications between parties
16. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Broker/Agent Provisions: Required when property agents are involved in the transaction, detailing commission arrangements
2. Existing Tenancies: Required when the property is sold subject to existing lease agreements
3. Furniture and Fittings: Required when the sale includes movable property within the real estate
4. Development Obligations: Required for off-plan purchases or properties under construction
5. Environmental Matters: Required for industrial properties or where environmental issues are relevant
6. Foreign Ownership Provisions: Required when purchaser is a foreign national or entity, addressing specific ownership restrictions
7. Strata Title Provisions: Required for apartments or properties under strata title
8. Bank Financing: Required when purchase involves bank financing, including specific conditions and requirements
1. Property Description Schedule: Detailed technical description of the property including certificates, measurements, and boundaries
2. Payment Schedule: Detailed breakdown of payment installments and timing
3. Property Title Documents: Copies of relevant property certificates and ownership documents
4. Due Diligence Results: Summary of property checks and verification results
5. Existing Encumbrances: Details of any existing mortgages, liens, or other encumbrances
6. Form of Transfer Deed: Draft of the AJB (Akta Jual Beli) to be executed before PPAT
7. Inventory List: List of furniture and fittings included in the sale (if applicable)
8. Required Permits: Copies of relevant permits and licenses related to the property
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