Contract To Buy Property for Indonesia

Contract To Buy Property Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that facilitates the transfer of property ownership from seller to buyer. This document adheres to the Indonesian Civil Code (KUHPerdata) and relevant property laws, including the Basic Agrarian Law. It details the terms and conditions of the property sale, including purchase price, payment terms, property specifications, and completion requirements. The agreement must be executed before a licensed Indonesian notary and includes provisions for property registration, tax obligations, and compliance with local regulations. It incorporates specific requirements for different types of property (land, buildings, apartments) and accommodates special provisions for foreign buyers where applicable.

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What is a Contract To Buy Property?

The Contract To Buy Property is a fundamental legal document used in Indonesian real estate transactions to formalize the purchase and transfer of property ownership. It is essential for any property transaction in Indonesia, whether involving residential, commercial, or industrial properties. The document must comply with Indonesian property laws, including the Basic Agrarian Law and Civil Code, and requires execution before a licensed notary. It includes crucial details such as property specifications, payment terms, warranties, and completion requirements. The contract addresses various aspects including title transfer, tax obligations, and regulatory compliance, while accommodating specific requirements for different property types and buyer categories (domestic or foreign). This document is particularly important given Indonesia's strict property ownership regulations and the formal requirements for property transfers.

What sections should be included in a Contract To Buy Property?

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and identification numbers as required by Indonesian law

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

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terms specific to Indonesian property law

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

5. Purchase Price: Agreed purchase price, payment terms, deposit requirements, and payment schedule

6. Payment Mechanism: Details of how payments will be made, including escrow arrangements if applicable

7. Conditions Precedent: Conditions that must be satisfied before completion, including title checks and regulatory approvals

8. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and compliance with regulations

9. Buyer's Warranties: Warranties regarding capacity to purchase and financial ability to complete the transaction

10. Completion Requirements: Steps to be taken for completion, including notarial deed requirements and registration processes

11. Costs and Taxes: Allocation of transaction costs, transfer taxes, and registration fees

12. Default and Termination: Consequences of default and circumstances allowing contract termination

13. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

14. Dispute Resolution: Mechanism for resolving disputes, including choice of forum and process

What sections are optional to include in a Contract To Buy Property?

1. Mortgage Requirements: Required when buyer is obtaining mortgage financing, detailing lender requirements and conditions

2. Foreign Ownership Provisions: Required for foreign buyers, including compliance with Indonesian foreign ownership restrictions

3. Property Management: Required for apartments or properties in managed complexes, detailing ongoing management obligations

4. Vacant Possession: Required when property is currently occupied, detailing arrangements for vacant possession

5. Construction Completion: Required for off-plan purchases, detailing construction specifications and completion requirements

6. Strata Title Provisions: Required for apartment purchases, including specific strata title requirements and obligations

7. Environmental Provisions: Required when property has specific environmental considerations or obligations

8. Development Restrictions: Required when property is subject to specific development or usage restrictions

What schedules should be included in a Contract To Buy Property?

1. Property Description Schedule: Detailed technical description of the property, including plans and specifications

2. Title Documents: Copies of land certificates and other title documents

3. Payment Schedule: Detailed breakdown of payment installments and timing

4. Property Inventory: List of fixtures, fittings, and other items included in the sale

5. Due Diligence Results: Summary of property checks, searches, and verification results

6. Required Permits: Copies of relevant permits and licenses

7. Property Photos: Recent photographs of the property and its boundaries

8. Land Use Certificates: Copies of land use rights and zoning certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Cost

Free to use

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