Land Buying Agreement Template for Indonesia

The Land Buying Agreement is a crucial legal instrument used in Indonesian property transactions to formalize the transfer of land ownership between parties. This document is essential when purchasing or selling land in Indonesia, whether for personal, commercial, or industrial purposes. It must comply with Indonesian property law, particularly the Basic Agrarian Law (UUPA) and related regulations, while addressing specific requirements for different types of land titles (such as Hak Milik, Hak Guna Bangunan). The agreement includes comprehensive details about the property, parties involved, purchase terms, and necessary legal procedures, while ensuring compliance with local land registration requirements, tax obligations, and potential customary law considerations. It's particularly important given Indonesia's complex land ownership system and specific restrictions on foreign ownership.

1. Parties: Identification of the seller and buyer, including complete legal names, addresses, and ID numbers (KTP for individuals or company registration for entities)

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

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terms specific to Indonesian property law

4. Property Details: Comprehensive description of the land, including certificate number, land measurements, boundaries, and current land use status

5. Purchase Price: Agreed purchase price, payment terms, method of payment, and payment schedule

6. Terms of Payment: Detailed payment structure, including deposit, installments if any, and final payment arrangements

7. Conditions Precedent: Conditions that must be fulfilled before the completion of the sale, including due diligence requirements

8. Seller's Warranties: Warranties regarding ownership, absence of encumbrances, and authority to sell

9. Transfer of Title: Process and requirements for legal transfer of title, including attendance at Land Office (BPN)

10. Taxes and Costs: Allocation of transaction costs, including transfer tax (BPHTB), income tax, and notary fees

11. Completion: Requirements and process for completion of the sale, including documentation and registrations

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

13. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

14. Notices: Process for sending and receiving formal communications between parties