Form For Real Estate Purchase Agreement Template for Indonesia

The Form For Real Estate Purchase Agreement serves as a standardized template for property transactions in Indonesia, designed to comply with the Indonesian Civil Code, Basic Agrarian Law, and related property regulations. This document is essential when transferring ownership of real estate property, whether residential, commercial, or industrial, and can be adapted for various transaction types including land, houses, apartments, or commercial buildings. The agreement template includes all necessary provisions required by Indonesian law, such as detailed property descriptions, payment terms, tax obligations, and property transfer procedures. It's particularly important as Indonesian real estate transactions must follow specific legal formalities and documentation requirements, including notarization and registration with the Land Office. The form accommodates both domestic and foreign buyers, with provisions that can be adjusted to address foreign ownership restrictions under Indonesian law.

1. Parties: Identification of the seller and purchaser with complete details as required by Indonesian law, including their legal capacity to enter into the agreement

2. Background: Context of the transaction, including brief description of the property and the parties' intention to enter into the sale and purchase transaction

3. Definitions: Key terms used throughout the agreement, including technical and legal terms specific to Indonesian real estate

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

5. Purchase Price: Agreed purchase price, payment structure, and payment methods in compliance with Indonesian banking regulations

6. Payment Terms: Detailed payment schedule, deposit requirements, and consequences of payment default

7. Conditions Precedent: Conditions that must be satisfied before the agreement becomes fully effective, including required governmental approvals

8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, absence of disputes, and other material facts

9. Buyer's Representations and Warranties: Buyer's declarations regarding legal capacity and financial ability to complete the purchase

10. Property Handover: Terms and conditions for the physical transfer of the property and all related documents

11. Taxes and Costs: Allocation of transaction costs, including BPHTB, PPh, and notary fees

12. Default and Termination: Consequences of breach and conditions for termination of the agreement

13. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

14. Execution: Formal closing section with signature blocks and witness requirements