Contract To Sell A House Template for Indonesia

The Contract to Sell a House is a fundamental legal document used in Indonesian property transactions to formalize the sale and purchase of residential property. This document is essential when transferring property ownership in Indonesia and must comply with specific local legal requirements, including the involvement of a certified land deed official (PPAT). The contract is typically used after initial negotiations are complete and before the final deed of sale (Akta Jual Beli) is executed. It covers crucial elements such as property details, price, payment terms, and conditions precedent, while ensuring compliance with Indonesian property law, including the Basic Agrarian Law and relevant tax regulations. The document serves as a binding agreement that protects both parties' interests and provides a clear framework for completing the property transfer process according to Indonesian legal requirements.

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and ID numbers (KTP)

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

3. Definitions: Key terms used throughout the agreement including Property, Purchase Price, Completion Date, etc.

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

5. Purchase Price: The agreed purchase price and payment terms, including deposit amount and payment schedule

6. Payment Method: Specified method of payment, bank account details, and payment verification process

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

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

9. Buyer's Representations and Warranties: Buyer's declarations regarding financial capacity and compliance with Indonesian property ownership laws

10. Completion Process: Steps for completing the transaction, including document signing and handover procedures

11. Tax Obligations: Specification of which party bears responsibility for various transaction taxes

12. Risk and Insurance: Transfer of risk and responsibility for insuring the property

13. Default and Termination: Consequences of breach and conditions for termination

14. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanism

15. Notices: Process for formal communications between parties

16. Execution: Signature blocks and execution requirements