Contract To Buy Property Template for Indonesia

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.

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