Estate Contract Template for Indonesia

The Estate Contract serves as the primary legal instrument for property transactions in Indonesia, operating within the framework of Indonesian civil law and property regulations. This document is essential when transferring ownership of real property, whether residential, commercial, or industrial. The contract must address specific requirements under Indonesian law, including the Basic Agrarian Law, land registration regulations, and local property ordinances. It's particularly important to note that Estate Contracts in Indonesia must be executed before a licensed notary public (PPAT) and require registration with the National Land Office. The document includes comprehensive details about the property, parties involved, payment terms, and legal obligations, while considering unique aspects of Indonesian property law such as different categories of land rights and restrictions on foreign ownership. Estate Contracts are commonly used in various scenarios, from simple residential property transfers to complex commercial real estate transactions.

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

2. Background: Context of the transaction, including brief property history and purpose of the transfer

3. Definitions: Definitions of key terms used throughout the contract, including technical and legal terminology

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

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

6. Payment Structure: Breakdown of payment schedule, including deposits and installments if applicable

7. Title and Ownership: Confirmation of clear title and transfer of ownership rights under Indonesian law

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

9. Due Diligence: Buyer's right to conduct property inspection and verification of documentation

10. Completion Requirements: Conditions to be met before completion, including necessary governmental approvals

11. Transfer Process: Steps for legal transfer of title, including notarial deed requirements

12. Costs and Taxes: Allocation of transaction costs, transfer taxes, and other fees

13. Default and Remedies: Consequences of breach and available remedies for both parties

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

15. Notices: Process for sending formal notices between parties

16. Execution: Signature requirements and execution process