Agreement To Sell (Real Estate) Template for Indonesia

The Agreement To Sell (Real Estate) is a crucial document in Indonesian property transactions, used when parties have agreed to the sale and purchase of real estate but need to formalize the terms before proceeding to the final transfer. This document is particularly important in Indonesia's legal framework, where property transfers follow a two-step process: first, the preliminary sale agreement, and then the official deed of sale (AJB). The agreement must comply with Indonesian property law, including the Basic Agrarian Law and related regulations, and typically includes detailed provisions about the property, payment terms, conditions precedent, and obligations of both parties. It serves as a comprehensive roadmap for the transaction, protecting both parties' interests while ensuring compliance with local property transfer requirements and restrictions, including any foreign ownership limitations if applicable.

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and identity card numbers (KTP for Indonesian citizens or passport for foreigners)

2. Background: Context of the transaction, including brief description of the property and the parties' intention to enter into a sale and purchase 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 registration details

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

6. Terms of Payment: Detailed payment structure including deposit, installments if any, and completion payment

7. Conditions Precedent: Conditions that must be satisfied before the sale can proceed

8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, condition, and legal status

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

10. Completion: Process and requirements for completing the sale, including signing of deed of sale (AJB)

11. Default and Termination: Consequences of default by either party and circumstances allowing termination

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

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

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

15. Execution: Signature blocks and execution requirements