For Sale By Owner Property Contract Template for Indonesia

The For Sale By Owner Property Contract is used in Indonesia when property owners wish to sell their property directly to buyers without primary real estate agent involvement. This approach can potentially reduce transaction costs while maintaining legal compliance. The document must conform to Indonesian property law, including the Basic Agrarian Law (Undang-Undang Pokok Agraria), land registration regulations, and local property regulations. It contains essential elements such as property details, price, payment terms, warranties, and transfer procedures. The contract must be notarized by a land deed official (PPAT) to facilitate valid property transfer registration. This document is particularly relevant in private property transactions where parties prefer direct negotiation and management of the sale process, while ensuring all legal requirements for property transfer in Indonesia are met.

1. Parties: Identification of the seller and buyer with complete legal names, ID numbers (KTP/passport), and addresses

2. Background: Brief context of the sale, including confirmation of seller's ownership rights and intention to sell

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

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

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

6. Payment Terms: Detailed payment structure including deposits, installments (if any), and final payment arrangements

7. Property Transfer Process: Steps and timeline for the legal transfer of property ownership

8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, absence of disputes, and condition of the property

9. Buyer's Representations and Warranties: Buyer's guarantees regarding financial capacity and compliance with Indonesian property ownership laws

10. Costs and Taxes: Allocation of transaction costs, transfer taxes, and other fees between parties

11. Property Handover: Conditions and process for physical handover of the property

12. Default and Remedies: Consequences of breach by either party and available remedies

13. Governing Law and Dispute Resolution: Confirmation of Indonesian law governance and dispute resolution mechanism

14. Notices: Process for formal communications between parties

15. Execution: Signature blocks and execution requirements