Agreement To Sell Land Template for Indonesia

An Agreement to Sell Land is a crucial legal document used in Indonesian real estate transactions to formalize the transfer of land ownership between parties. This document is essential when any type of land transfer is contemplated in Indonesia, whether for residential, commercial, or industrial purposes. The agreement must comply with Indonesia's Basic Agrarian Law (UUPA) and related regulations, which establish specific requirements for land ownership and transfer. It includes comprehensive details about the land, parties involved, purchase price, payment terms, warranties, and completion requirements. The document is particularly important given Indonesia's unique land rights system and strict regulations regarding property ownership, especially concerning foreign investment. This type of agreement requires careful consideration of local land use restrictions, zoning requirements, and mandatory involvement of authorized officials for valid execution.

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 transaction, including brief history of land ownership and purpose of the sale

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terms specific to Indonesian land law

4. Land Details: Comprehensive description of the land including certificate number, location, boundaries, and size as per official records

5. Sale and Purchase: Core agreement terms stating the seller's commitment to sell and buyer's commitment to purchase the specified land

6. Purchase Price: Agreed purchase price, currency, and payment structure

7. Payment Terms: Detailed payment schedule, method of payment, and consequences of payment default

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

9. Seller's Warranties: Warranties regarding land ownership, absence of encumbrances, and compliance with laws

10. Buyer's Warranties: Warranties regarding legal capacity and financial ability to complete the purchase

11. Completion: Process and requirements for completing the land transfer, including documentation and registration

12. Default and Termination: Consequences of breach and circumstances allowing termination

13. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties

14. Notices: Process for formal communications between parties

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

16. Execution: Signature blocks and execution requirements