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Real Estate Sales Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that formalizes the transfer of real estate property from a seller to a buyer. This agreement complies with the Indonesian Civil Code (KUHPerdata) and Basic Agrarian Law (UUPA), incorporating all essential elements required for a valid property transfer in Indonesia. The document details the property specifications, purchase price, payment terms, and obligations of both parties while ensuring compliance with local property registration requirements and tax regulations. It includes specific provisions for property transfer documentation required by the Land Office (BPN) and arrangements for execution before a licensed Land Deed Official (PPAT).

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What is a Real Estate Sales Agreement?

The Real Estate Sales Agreement serves as the primary legal instrument for property transactions in Indonesia, essential for both residential and commercial property transfers. This document is specifically designed to comply with Indonesian property law requirements, including the Basic Agrarian Law (UUPA) and relevant property registration regulations. It becomes necessary whenever there is a transfer of property ownership, whether between individuals, corporations, or a combination thereof. The agreement captures crucial details including property specifications, ownership rights, payment terms, and transfer procedures, while ensuring compliance with local land registration requirements and tax obligations. It must be executed before a licensed Land Deed Official (PPAT) and subsequently registered with the National Land Office (BPN). The document is particularly important as it forms the basis for the official transfer deed (Akta Jual Beli) and provides protection for both buyers and sellers under Indonesian law.

What sections should be included in a Real Estate Sales Agreement?

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and identification numbers as required by Indonesian law

2. Background: Context of the sale, including brief property history and purpose of the transaction

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including certificate number, land area, building specifications, and boundaries as per land certificate

5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments

6. Payment Method: Specified method of payment, including bank details and currency

7. Transfer of Title: Process and requirements for legal transfer of property ownership

8. Representations and Warranties: Seller's warranties regarding property ownership, absence of disputes, and condition of the property

9. Seller's Obligations: Specific obligations of the seller including document preparation and property handover

10. Buyer's Obligations: Specific obligations of the buyer including payment and documentation requirements

11. Costs and Taxes: Allocation of transaction costs, transfer taxes, and other fees

12. Default and Termination: Consequences of default and conditions for agreement termination

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictions

14. Dispute Resolution: Process for resolving disputes, including choice of forum

15. Notices: Method and addresses for formal communications between parties

16. Execution: Signature requirements and execution formalities

What sections are optional to include in a Real Estate Sales Agreement?

1. Mortgage Provisions: Required when the property purchase involves mortgage financing

2. Foreign Ownership Compliance: Required when the buyer is a foreign national, detailing compliance with Indonesian foreign ownership restrictions

3. Property Management Handover: Required for properties within managed complexes or apartments

4. Tenant Provisions: Required when the property is currently leased to tenants

5. Broker Provisions: Required when real estate agents or brokers are involved in the transaction

6. Condition Precedents: Special conditions that must be met before completion

7. Strata Title Provisions: Required for apartment or condominium purchases

8. Development Obligations: Required when the property includes undeveloped land or ongoing construction

What schedules should be included in a Real Estate Sales Agreement?

1. Property Description Schedule: Detailed technical description of the property, including exact measurements and boundaries

2. Payment Schedule: Detailed breakdown of payment installments and due dates

3. Land Certificate Details: Copy and details of the land certificate and ownership history

4. Property Tax Records: History of property tax payments and current status

5. Property Photos and Plans: Official property photographs and architectural plans

6. Inventory List: List of any furnishings or fixtures included in the sale

7. Due Diligence Documents: Copies of permits, licenses, and compliance certificates

8. Power of Attorney: If required for transaction completion

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Cost

Free to use

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