Document background
A Gift Letter For Down Payment is a crucial document in Indonesian property transactions where family members or others provide financial assistance for property purchases. This document is typically required by banks and financial institutions when a portion of the down payment comes from a gift rather than the buyer's own savings. It helps ensure compliance with Indonesian banking regulations, particularly regarding source of funds verification and anti-money laundering requirements. The letter must conform to Indonesian Civil Code (KUHPerdata) provisions regarding gifts (hibah) and may need to address Islamic law requirements if the parties are Muslim. It's commonly used in first-time home purchases where parents assist their children with down payments, and serves to protect all parties by clearly documenting the gift's terms and conditions.
