Area Residential Purchase Contract Template for Indonesia

The Area Residential Purchase Contract serves as the primary legal instrument for residential property transactions in Indonesia, essential for both private sales and developer-led property purchases. This document is specifically designed to comply with Indonesian property law requirements, including the Basic Agrarian Law No. 5 of 1960 and related regulations. It is used when transferring ownership of residential properties, whether they are standalone houses, apartments, or properties within planned developments. The contract includes crucial elements such as property details, payment terms, ownership transfer procedures, and tax obligations, while ensuring all necessary government approvals and registrations are addressed. This standardized agreement helps prevent disputes by clearly outlining all terms and conditions of the sale, making it a fundamental tool in Indonesian real estate transactions.

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 property description and parties' intention to enter into a sale and purchase agreement

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

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

5. Purchase Price: Agreed purchase price, payment terms, method of payment, and payment schedule in accordance with Indonesian banking regulations

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

7. Conditions Precedent: Conditions that must be fulfilled before the sale can proceed, including property checks and necessary government approvals

8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, absence of disputes, and compliance with regulations

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

10. Property Handover: Terms and process for physical handover of the property and transfer of utilities

11. Tax Obligations: Allocation of tax responsibilities including Land and Building Transfer Tax (BPHTB) and Income Tax on Transfer of Land and Building (PPh)

12. Costs and Expenses: Allocation of costs related to the transaction including notary fees and registration costs

13. Default and Termination: Consequences of breach by either party and conditions for agreement termination

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

15. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

16. Execution: Signature requirements and execution process in accordance with Indonesian legal requirements