Deed For Sale Of Property Template for Indonesia

The Deed for Sale of Property is a fundamental legal document in Indonesian property transactions, required whenever real property ownership is transferred between parties. It serves as the official instrument for property transfers under Indonesian law, particularly the Basic Agrarian Law (UU No. 5/1960) and related regulations. The deed must be drafted and executed by a licensed Indonesian notary public, containing comprehensive details about the property, parties involved, and transaction terms. This document is essential for both residential and commercial property transfers, requiring registration with the National Land Office (BPN) to complete the ownership transfer. It includes critical information such as property details, price, payment terms, and various warranties, while ensuring compliance with local property laws, foreign ownership restrictions (if applicable), and tax regulations.

1. Parties: Identification of the seller and buyer, including their full legal names, ID numbers, addresses, and capacity to enter into the agreement

2. Background: Context of the transaction, including brief history of property ownership and intention to transfer

3. Definitions: Key terms used throughout the deed, including property-specific terminology

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

5. Sale Price and Payment Terms: Agreed purchase price, payment method, and schedule of payments

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

7. Transfer of Rights: Terms and process for legal transfer of property ownership

8. Handover Provisions: Timeline and conditions for physical handover of the property

9. Tax Obligations: Allocation of tax responsibilities between parties (including land and building transfer tax, income tax)

10. Costs and Expenses: Distribution of deed costs, registration fees, and other transaction expenses

11. Force Majeure: Provisions for unforeseen circumstances affecting the transaction

12. Governing Law: Confirmation of Indonesian law application and jurisdiction

13. Execution: Formal execution clause meeting notarial requirements