House Buying Contract Template for Indonesia

The House Buying Contract is a fundamental legal document used in Indonesian property transactions for the purchase and sale of residential properties. It serves as the primary agreement between buyers and sellers, outlining all essential aspects of the property transfer, including property details, payment terms, and legal obligations. This document must comply with Indonesian property law, particularly the Basic Agrarian Law and Civil Code, and requires execution before a Land Deed Official (PPAT). It's designed to protect both parties' interests while ensuring compliance with local property regulations, tax requirements, and foreign ownership restrictions where applicable. The contract is crucial for both private and commercial property transactions, incorporating necessary safeguards and conditions for successful property transfer in the Indonesian legal context.

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and ID numbers as required by Indonesian law

2. Background: Context of the transaction, including brief property history and purpose of the agreement

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

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

5. Purchase Price: Agreed purchase price and payment structure

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

7. Conditions Precedent: Conditions that must be fulfilled before the transaction can proceed

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

9. Property Handover: Terms and conditions for physical handover of the property

10. Transfer of Title: Process and requirements for legal transfer of property ownership

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

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

13. Dispute Resolution: Process for resolving disputes between parties

14. Governing Law: Confirmation of Indonesian law as governing law

15. Notices: How formal communications between parties should be made

16. Execution: Signature requirements and execution process