Bargain Sale Deed Template for Indonesia

The Bargain Sale Deed is a specialized legal instrument used in Indonesian property transactions where the agreed sale price is intentionally set below market value. This type of deed is commonly used in family transfers, charitable donations, or strategic business arrangements where parties deliberately agree to a reduced price. The document must comply with Indonesian Civil Code, Basic Agrarian Law, and related regulations governing property transfers. It requires careful documentation of both market value and actual sale price, along with justification for the price difference. The deed must be executed before a Land Deed Official (PPAT) and properly registered with relevant authorities. Special attention is given to tax implications, as Indonesian tax authorities may scrutinize below-market transactions. The document is particularly relevant in scenarios involving partial charitable contributions, family estate planning, or corporate restructuring where property transfers at reduced values are desired.

1. Parties: Identification of the Seller (Penjual) and Buyer (Pembeli) with complete legal names, addresses, and identification numbers

2. Background: Context of the bargain sale, including acknowledgment that the sale price is below market value and the reason for the bargain sale arrangement

3. Definitions: Definitions of key terms used in the deed, including Property, Market Value, Sale Price, and other relevant terms

4. Property Details: Complete description of the property including certificate number, land area, building area, boundaries, and location details as per land certificate

5. Market Value Declaration: Statement of the current market value of the property supported by professional valuation

6. Sale Price and Payment Terms: Agreed sale price, acknowledgment of the discount from market value, and payment arrangements

7. Transfer of Rights: Legal declaration of transfer of ownership rights from seller to buyer

8. Representations and Warranties: Seller's declarations regarding property ownership, absence of encumbrances, and authority to sell

9. Tax Obligations: Allocation of responsibility for transfer taxes, income tax, and other applicable taxes

10. Handover Provisions: Terms and timing for physical handover of the property

11. Registration and Notarial Requirements: Procedures for legal registration of the transfer and notarial execution requirements