Binding Real Estate Contract Template for Indonesia

The Binding Real Estate Contract serves as the primary legal instrument for property transactions in Indonesia, essential for both residential and commercial property transfers. This document is required whenever there is a transfer of real estate ownership rights under Indonesian jurisdiction, whether between domestic parties or involving foreign investors (subject to foreign ownership restrictions). The contract must comply with the Indonesian Civil Code, Basic Agrarian Law, and various property-related regulations, incorporating mandatory provisions for land rights transfer, payment terms, and legal obligations. It is typically prepared by or in conjunction with a Land Deed Official (PPAT) and requires notarization to be legally enforceable. The document's structure and content are designed to protect both parties' interests while ensuring adherence to local property laws, tax regulations, and registration requirements.

1. Parties: Identification and details of the seller and buyer, including their legal capacity to enter into the agreement

2. Background: Context of the transaction and brief description of the property being transferred

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

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

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

6. Payment Method: Specified method of payment and banking details

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

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

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

10. Closing Process: Steps and requirements for completing the property transfer

11. Title Transfer: Process and obligations for legal transfer of title

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

13. Default and Remedies: Consequences and remedies for breach of contract

14. Force Majeure: Provisions for unforeseen circumstances preventing contract fulfillment

15. Governing Law: Specification of Indonesian law as governing law

16. Dispute Resolution: Process for resolving disputes between parties

17. Notices: Method and addresses for official communications

18. Execution: Signature requirements and execution process