The For Sale By Owner Agreement is utilized in Indonesia when property owners choose to sell their property directly to buyers without engaging real estate agents, potentially reducing transaction costs. This document serves as the preliminary agreement (Perjanjian Pengikatan Jual Beli) before the final deed of sale is executed by a Land Deed Official (PPAT). It must comply with Indonesian Civil Code, Basic Agrarian Law, and relevant property regulations. The agreement typically includes comprehensive property details, price and payment terms, conditions precedent, warranties, and specific provisions required under Indonesian law. It's particularly important in establishing the rights and obligations of both parties during the transition period between initial agreement and final property transfer, considering Indonesia's unique property registration and transfer requirements.
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1. Parties: Identification and details of the Seller and Buyer, including full legal names, ID numbers (KTP/passport), and addresses
2. Background: Context of the sale, including brief property description and seller's ownership rights
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, and exact location
5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments
6. Payment Method: Specified method of payment and account details
7. Conditions Precedent: Conditions that must be met before the sale can proceed
8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, condition, and encumbrances
9. Buyer's Representations and Warranties: Buyer's declarations regarding capability to purchase and compliance with regulations
10. Closing Process: Steps for completing the transaction, including documentation and timing
11. Transfer of Title: Process and requirements for legal transfer of property ownership
12. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties
13. Default and Remedies: Consequences and remedies for breach of agreement terms
14. Governing Law: Specification of Indonesian law as governing law
15. Dispute Resolution: Process for resolving disputes between parties
16. Notices: Method and addresses for official communications between parties
17. Execution: Signature blocks and execution requirements
1. Broker/Agent Involvement: Details of any broker or agent involvement, used when a third party assists with the sale
2. Financing Contingency: Conditions related to buyer's financing, used when purchase depends on obtaining a mortgage
3. Property Inspection: Terms for property inspection rights and process, used when buyer requires inspection period
4. Vacant Possession: Terms regarding current occupancy and vacancy requirements, used when property is tenanted
5. Furniture and Fixtures: List of items included/excluded in sale, used when sale includes movable property
6. Foreign Ownership Provisions: Special provisions for foreign buyers, used when buyer is non-Indonesian
7. Strata Title Provisions: Special provisions for apartments/condominiums, used for strata-title properties
8. Construction Warranty: Warranties for newly constructed properties, used for new buildings
9. Environmental Matters: Environmental declarations and obligations, used for industrial or contamination-risk properties
1. Property Certificate: Copy of land certificate and property ownership documents
2. Property Tax Details: Recent property tax payments and outstanding amounts
3. Property Photographs: Recent photographs of property interior and exterior
4. Site Plan: Official site plan showing property boundaries and measurements
5. Building Permits: Copies of relevant building permits and certificates
6. Payment Schedule: Detailed schedule of payment installments if applicable
7. Inventory List: Detailed list of included furniture and fixtures if applicable
8. Property Condition Report: Detailed report on property condition and any known defects
9. Required Permits: Copies of all relevant permits and approvals for property use
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