Agreement Of Property Sale Template for Indonesia

The Agreement of Property Sale is a crucial legal document used in Indonesian property transactions to formalize the transfer of property ownership rights. This agreement is essential for both residential and commercial property transactions in Indonesia and must comply with specific local regulations, including the Basic Agrarian Law and Indonesian Civil Code. The document encompasses detailed property descriptions, purchase terms, warranties, and conditions for transfer, while addressing specific Indonesian requirements such as execution before a Land Deed Official (PPAT) and registration with local land authorities. It serves as the primary instrument for protecting both buyers' and sellers' interests in property transactions, ensuring legal compliance and proper documentation of ownership transfer.

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

2. Background: Context of the sale, brief description of the property, and statement of parties' intention to enter into the sale agreement

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

4. Property Details: Comprehensive description of the property including certificate number, land area, building area, boundaries, and registered address

5. Purchase Price: Agreed purchase price, payment schedule, and payment method

6. Payment Terms: Detailed payment structure including deposits, installments if any, and final payment arrangements

7. Representations and Warranties: Seller's warranties regarding property ownership, absence of disputes, and buyer's acknowledgments

8. Conditions Precedent: Conditions that must be met before the sale can proceed, including legal and regulatory requirements

9. Completion Requirements: Steps to be taken for property handover and transfer of ownership

10. Rights and Obligations: Specific responsibilities of both parties before, during, and after the transfer

11. Tax Obligations: Clarity on who bears various taxes including BPHTB and income tax

12. Default and Remedies: Consequences of breach and available remedies

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

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

15. Notices: How formal communications between parties should be made

16. Execution: Signature blocks and execution requirements