Home Sales Agreement Template for Indonesia

The Home Sales Agreement serves as the primary legal instrument for residential property transactions in Indonesia. This document is essential when transferring ownership of houses, residential units, or similar properties from one party to another within Indonesian jurisdiction. It must comply with various local regulations, including the Indonesian Civil Code, Basic Agrarian Law, and specific housing regulations. The agreement typically includes comprehensive details about the property, parties involved, payment terms, warranties, and transfer procedures. It's particularly important as property transactions in Indonesia require specific formalities and documentation, including notarization. The document must address unique aspects of Indonesian property law, such as different land title types (HGB, SHM) and specific requirements for foreign buyers if applicable. This agreement forms the basis for the subsequent notarial deed (AJB - Akta Jual Beli) required for official property transfer.

1. Parties: Identification and details of the Seller and Buyer, including their legal names, addresses, and ID numbers

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

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

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

5. Purchase Price: Agreed purchase price and payment structure, including deposit and installment terms if applicable

6. Payment Terms: Detailed payment schedule, method of payment, and consequences of late payment

7. Transfer of Ownership: Process and timing of ownership transfer, including requirements for deed execution and registration

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

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

10. Conditions Precedent: Conditions that must be met before the sale can proceed

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

12. Taxes and Costs: Allocation of transaction costs, taxes, and fees between parties

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

14. Dispute Resolution: Process for resolving disputes, including choice of forum and mediation requirements

15. Governing Law: Specification of Indonesian law as governing law

16. Notices: Process and requirements for formal communications between parties

17. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments