Contract For Buying A House Template for Indonesia

The Contract For Buying A House is a fundamental legal document used in Indonesian property transactions to formalize the transfer of residential property ownership. This document is essential when any individual or entity wishes to purchase residential property in Indonesia, whether for personal use or investment purposes. It must comply with various Indonesian regulations, including the Basic Agrarian Law No. 5 of 1960 and the Civil Code. The contract encompasses crucial elements such as property details, ownership rights, payment terms, and transfer procedures, while also addressing specific requirements for foreign buyers if applicable. It serves as the primary legal instrument for protecting both buyer's and seller's interests during the property transaction process and is typically executed before a licensed Indonesian notary (PPAT).

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and ID numbers (KTP for Indonesian citizens or passport for foreigners)

2. Background: Context of the transaction, including brief property description and parties' intention to enter into the sale and purchase agreement

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

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

5. Purchase Price: Agreed purchase price, payment schedule, and payment method

6. Payment Terms: Detailed breakdown of payment structure, including deposit, installments, and final payment requirements

7. Conditions Precedent: Conditions that must be satisfied before the sale can proceed, including legal and technical due diligence

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

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

10. Completion Requirements: Steps to be taken for legal transfer of property ownership and registration

11. Costs and Taxes: Allocation of transaction costs, transfer taxes, and other fees between parties

12. Default and Termination: Consequences of breach and conditions for contract termination

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

14. Notices: How formal communications between parties should be made and delivered

15. Execution: Signature blocks and execution requirements