Installment Sales Contract (Real Estate) Template for Indonesia

The Installment Sales Contract (Real Estate) is a crucial document used in Indonesian property transactions where buyers prefer or require a structured payment plan rather than a single lump-sum payment. This contract type is commonly used in both residential and commercial property sales, providing a legal framework for extended payment terms while ensuring seller security and buyer protection. It must comply with Indonesian Civil Code requirements, Basic Agrarian Law, and relevant property regulations. The document includes essential elements such as property details, payment schedules, title transfer conditions, and party obligations. It's particularly relevant in Indonesia's growing property market where installment-based purchases are increasingly common, especially for middle-class homebuyers and commercial property investors who prefer staged payments.

1. Parties: Identification of the Seller and Buyer, including complete legal names, addresses, and any relevant registration numbers

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

3. Definitions: Key terms used throughout the agreement, including Property, Purchase Price, Installment Payments, etc.

4. Object of Sale: Detailed description of the property being sold, including its legal status and any encumbrances

5. Purchase Price: Total purchase price, down payment amount, and detailed installment payment structure

6. Payment Terms: Specific terms regarding installment payments, including payment schedule, method, and late payment consequences

7. Transfer of Title: Conditions and process for the eventual transfer of title upon completion of payments

8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, condition, and authority to sell

9. Buyer's Representations and Warranties: Buyer's guarantees regarding financial capacity and compliance with requirements

10. Rights and Obligations: Detailed responsibilities of both parties during the installment period

11. Default and Remedies: Consequences of default by either party and available remedies

12. Property Maintenance and Use: Terms regarding property maintenance and permitted use during the installment period

13. Insurance: Requirements for property insurance during the installment period

14. Taxes and Expenses: Allocation of responsibility for property taxes and transaction costs

15. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

16. Dispute Resolution: Process for resolving disputes between parties

17. Notices: Methods and addresses for formal communications between parties

18. Execution: Signature blocks and formal closing of the agreement