Contract To Sell Property Template for Indonesia

The Contract To Sell Property is a crucial document in Indonesian real estate transactions, used when parties agree to transfer property ownership subject to specific terms and conditions. This document is essential in both residential and commercial property transactions in Indonesia, serving as a binding preliminary agreement before the execution of the final deed of sale (Akta Jual Beli). It must comply with Indonesian property law requirements, including the Basic Agrarian Law and related regulations governing land rights and property ownership. The contract typically includes detailed property descriptions, payment terms, conditions precedent, warranties, and specific provisions required under Indonesian law. It's particularly important as it establishes the framework for the transaction and protects both parties' interests during the period between initial agreement and final property transfer.

1. Parties: Identification of the seller and buyer with complete details including name, ID/passport number, address, and citizenship status

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

3. Definitions: Definitions of key terms used throughout the agreement

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

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

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

7. Conditions Precedent: Conditions that must be fulfilled before the sale can be completed

8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, encumbrances, and legal status

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

10. Completion: Process and requirements for finalizing the sale and transfer of title

11. Tax Obligations: Allocation of tax responsibilities between parties

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

13. Dispute Resolution: Procedures for handling disputes including choice of forum and applicable law

14. Notices: Method and addresses for formal communications between parties

15. Governing Law: Specification of Indonesian law as governing law

16. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments