Agreement For Sale Of Property Template for Indonesia

The Agreement For Sale of Property is a fundamental legal document used in Indonesian property transactions to formalize the transfer of real estate ownership. It is essential for both residential and commercial property sales in Indonesia, requiring careful consideration of local property laws, particularly the Basic Agrarian Law (UUPA) and property registration requirements. This agreement is used when parties have agreed to the sale and purchase of property and need to document the terms, conditions, and obligations of both parties. It must comply with specific Indonesian legal requirements, including proper execution before a land deed official (PPAT) for registration purposes. The document covers crucial elements such as property details, purchase price, payment terms, warranties, and the process for transferring legal title, while ensuring compliance with foreign ownership restrictions if applicable.

1. Parties: Identification and details of the Seller and Purchaser, including their legal capacity to enter into the agreement

2. Background: Context of the transaction and brief description of the property being sold

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

4. Property Details: Comprehensive description of the property including location, boundaries, and certificate details

5. Purchase Price: Agreed purchase price and payment terms including deposit and installment structure

6. Payment Method: Specified method of payment and bank account details

7. Conditions Precedent: Conditions that must be fulfilled before completion of the sale

8. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and legal status

9. Purchaser's Warranties: Warranties regarding legal capacity and financial ability to complete the purchase

10. Completion: Process and requirements for completing the sale including documentation and registration

11. Transfer of Title: Procedure for transferring legal title and registration requirements

12. Costs and Taxes: Allocation of transaction costs, taxes, and registration fees

13. Default and Termination: Consequences of default and circumstances allowing termination

14. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

15. Notices: Process for giving formal notices under the agreement

16. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability