The For Sale By Owner Contract is essential for property transactions in Indonesia where sellers choose to market and sell their property directly without real estate agent intermediaries. This document type is commonly used in both residential and commercial property sales, providing a comprehensive framework for direct property transactions while ensuring compliance with Indonesian property laws and regulations. The contract includes crucial elements such as property details, price negotiations, payment terms, and transfer procedures, all aligned with the Indonesian Civil Code and Basic Agrarian Law. It's particularly relevant in situations where property owners want to maintain control over the sales process while reducing transaction costs, though it requires careful attention to legal requirements and proper documentation for the Indonesian Land Office (BPN).
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1. Parties: Identification of the seller and buyer, including full legal names, ID numbers (KTP/passport), and addresses
2. Background: Brief context of the sale, including the seller's ownership status and intention to sell
3. Definitions: Key terms used throughout the agreement, including Property, Purchase Price, Completion Date, etc.
4. Property Details: Complete description of the property including address, certificate number, land area, building area, and boundaries
5. Purchase Price: Agreed purchase price in both numbers and words, currency, and what the price includes
6. Payment Terms: Payment schedule, method of payment, and any conditions attached to payments
7. Transfer of Ownership: Process and requirements for legal transfer of property ownership
8. Representations and Warranties: Seller's declarations regarding property ownership, absence of disputes, and property condition
9. Rights and Obligations: Detailed responsibilities of both parties before, during, and after the transaction
10. Costs and Taxes: Allocation of transaction costs, transfer taxes, and other fees between parties
11. Completion Requirements: Conditions that must be met for completion, including document requirements and timelines
12. Default and Termination: Consequences of breach and conditions for contract termination
13. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
14. Execution: Signature blocks and witnessing requirements
1. Foreign Ownership Compliance: Required when buyer is a foreigner, detailing compliance with Indonesian foreign ownership restrictions
2. Strata Title Provisions: Required for apartment sales, including body corporate rules and obligations
3. Mortgage Details: Required if property has existing mortgage or if purchase involves new mortgage financing
4. Property Management: Optional section for arrangements regarding property management during transition period
5. Tenant Provisions: Required if property is currently leased, addressing existing tenancy arrangements
6. Broker Involvement: Required if any real estate agents are involved, despite being FSBO
7. Condition Precedents: Optional section for any specific conditions that must be met before completion
8. Dispute Resolution: Optional detailed procedures for handling disputes, including mediation provisions
1. Property Details Schedule: Detailed technical description of property, including exact measurements and boundaries
2. Title Documents: Copies of land certificate and other ownership documents
3. Property Tax Records: Recent property tax payments and outstanding amounts
4. Inventory List: List of any furnishings or fixtures included in the sale
5. Property Photographs: Recent photographs of the property and its boundaries
6. Payment Schedule: Detailed breakdown of payment installments if applicable
7. Due Diligence Results: Summary of any property inspections or surveys conducted
8. Required Permits: Copies of relevant building permits and certificates
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