Car Sold As Is Contract Template for Indonesia

A Car Sold As Is Contract is a legally binding agreement that governs vehicle sales in Indonesia where the seller transfers ownership without providing warranties or guarantees beyond those mandated by Indonesian law. This document ensures both parties understand their rights and obligations while complying with Indonesia's comprehensive vehicle sale regulations.

When do you need this document?

You need this contract when selling or buying a used vehicle in Indonesia where the seller wishes to limit liability and the buyer accepts the vehicle in its current condition. Private individuals selling their personal vehicles commonly use this document to protect themselves from future claims about undisclosed defects. Car dealerships and used car businesses rely on these contracts when selling pre-owned inventory to clearly establish the "as is" nature of the sale. Corporate entities disposing of fleet vehicles use this agreement to transfer ownership while minimizing potential legal exposure. Auto brokers facilitating vehicle sales between parties also require this document to formalize the transaction terms and condition acknowledgments.

Key legal considerations

The contract must clearly define what "as is" means under Indonesian law, including any limitations on this concept imposed by consumer protection regulations. You need to include comprehensive vehicle identification details such as make, model, year, VIN, and license plate number to ensure proper legal transfer. The agreement should document any known defects or issues with the vehicle to maintain transparency and reduce future disputes. Payment terms, including the total purchase price, payment method, and timing, must be clearly specified to avoid misunderstandings. The contract should address ownership transfer procedures, including the responsibility for handling BPKB (vehicle registration certificate) transfer and related administrative costs. Both parties must acknowledge their understanding of the "as is" condition in writing to strengthen the agreement's enforceability.

Legal requirements in Indonesia

Under the Indonesian Civil Code (KUHPerdata), your contract must meet the fundamental requirements for valid agreements including mutual consent, legal capacity of parties, lawful object, and legal cause. Law No. 8 of 1999 on Consumer Protection requires disclosure of material information about the vehicle's condition, even in "as is" sales, to protect buyer rights. Law No. 22 of 2009 on Traffic and Road Transportation mandates proper vehicle registration transfer procedures and compliance with technical standards for road-worthy vehicles. The contract must include complete identification of both parties with legal names, addresses, and identification numbers as required by Indonesian regulations. You must ensure the vehicle ownership transfer follows Government Regulation No. 55 of 2012 regarding vehicle testing and registration requirements. The agreement should specify which party bears responsibility for any outstanding fines, taxes, or administrative obligations related to the vehicle to ensure clear legal transfer of ownership.