Buy Sell Agreement For A House Template for Indonesia

The Buy Sell Agreement For A House serves as the primary legal instrument for property transactions in Indonesia, operating within the framework of Indonesian property law and the Civil Code (KUHPerdata). This document is essential when transferring ownership of residential property, requiring execution before a Land Deed Official (PPAT) and subsequent registration with the National Land Office. It covers all crucial aspects of the transaction, from property specifications and payment terms to legal requirements and tax obligations. The agreement must comply with various Indonesian regulations, including the Basic Agrarian Law No. 5 of 1960, Government Regulation No. 24 of 1997 on Land Registration, and relevant tax laws. It's particularly important in Indonesia's unique land title system, where different types of land rights exist and specific procedures must be followed for valid property transfer.

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 confirmation of the Seller's ownership and right to sell the property

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

4. Object of Sale: Detailed description of the property including address, certificate number, land area, building specifications, and boundaries

5. Purchase Price: Agreed purchase price and payment structure, including deposit amounts and payment schedule

6. Payment Terms: Detailed payment procedures, including method of payment and bank account details

7. Transfer of Title: Process and requirements for legal transfer of the property title

8. Representations and Warranties: Seller's warranties regarding property ownership, absence of disputes, and condition of the property

9. Rights and Obligations: Specific rights and obligations of both parties before, during, and after the transaction

10. Taxes and Costs: Allocation of transaction costs, including transfer tax, notary fees, and other applicable taxes

11. Property Handover: Conditions and procedures for physical handover of the property

12. Default and Termination: Consequences of default and conditions for agreement termination

13. Dispute Resolution: Procedures for resolving disputes, including choice of forum and applicable law

14. Notices: Methods and addresses for official communications between parties

15. Governing Law: Confirmation of Indonesian law as the governing law

16. Execution: Signature blocks and execution requirements