Land Acquisition Agreement Template for Indonesia

The Land Acquisition Agreement is a crucial document used in Indonesian real estate transactions to formalize and legally execute the transfer of land ownership between parties. This agreement type is essential for various purposes, including commercial development, industrial expansion, or investment projects, and must strictly adhere to Indonesian property laws and regulations. The document encompasses all necessary elements required by Indonesian law, including detailed property descriptions, ownership verification, transfer procedures, and regulatory compliance requirements. It's particularly important as land transactions in Indonesia involve specific legal considerations, including restrictions on foreign ownership, traditional land rights (Adat), and mandatory involvement of certified land deed officials (PPAT). The agreement serves as the foundation for the subsequent execution of the final land deed transfer (Akta Jual Beli) and registration with the National Land Agency (BPN).

1. Parties: Identification of the seller and purchaser, including complete legal names, addresses, and registration numbers for companies

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

3. Definitions: Definitions of key terms used throughout the agreement, including specific Indonesian legal terms

4. Property Description: Detailed description of the land, including certificate numbers, boundaries, and existing rights

5. Purchase Price: Agreement on purchase price, payment terms, and method of payment

6. Conditions Precedent: Conditions that must be satisfied before completion, including governmental approvals and due diligence

7. Seller's Representations and Warranties: Warranties regarding ownership, absence of encumbrances, and compliance with laws

8. Buyer's Representations and Warranties: Warranties regarding legal capacity and authority to purchase

9. Completion Requirements: Steps for completing the transfer, including documentation and registration requirements

10. Tax Obligations: Allocation of tax responsibilities including land and building transfer tax (BPHTB)

11. Registration and Transfer: Process for legal transfer and registration with the National Land Office

12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

13. Force Majeure: Provisions for unforeseen circumstances affecting completion

14. Notices: Communication procedures between parties

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