Commercial Real Estate Contract Template for Indonesia

The Commercial Real Estate Contract is a fundamental legal instrument used in Indonesian property transactions for commercial buildings, land, and facilities. This document is essential when parties wish to enter into legally binding arrangements for the sale, purchase, or lease of commercial properties in Indonesia. It incorporates crucial elements required by Indonesian law, including compliance with the Basic Agrarian Law, Building Law, and local property regulations. The contract addresses key aspects such as property rights, payment terms, obligations of parties, and regulatory requirements, while considering specific provisions for foreign investment if applicable. It's particularly important in Indonesia's dynamic commercial property market, where clear documentation of property rights and obligations is crucial for legal certainty. The document must be properly executed and registered according to Indonesian law, often requiring notarization and local authority approval.

1. Parties: Identification of the seller/lessor and buyer/lessee, including complete legal names, addresses, and company registration details

2. Background: Context of the transaction, brief description of the property, and purpose of the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement, including property-specific terminology

4. Property Details: Comprehensive description of the property, including exact location, boundaries, and certificate details

5. Transaction Terms: Core commercial terms including price/rent, payment terms, and payment schedule

6. Rights and Obligations: Detailed responsibilities of each party, including maintenance, utilities, and property management

7. Representations and Warranties: Statements of fact and guarantees from both parties regarding the property and their capacity to enter the agreement

8. Conditions Precedent: Prerequisites that must be fulfilled before the agreement becomes effective

9. Completion Requirements: Steps required for transaction completion, including documentation and registration requirements

10. Default and Remedies: Consequences of breach and available remedies for each party

11. Insurance and Liability: Insurance requirements and allocation of risks between parties

12. Force Majeure: Provisions for unforeseen circumstances affecting contract performance

13. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes

14. Notices: Process for formal communications between parties

15. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments