Land For Sale By Owner Contract Template for Indonesia

The Land For Sale By Owner Contract is essential for private property transactions in Indonesia where owners choose to sell their land directly without broker involvement. This document type is governed by Indonesian law, particularly the Basic Agrarian Law (UU No. 5/1960) and related regulations, requiring specific formalities including execution before a Land Deed Official (PPAT). The contract becomes necessary when a landowner wishes to transfer their property rights directly to a buyer, whether for residential, commercial, or industrial purposes. It must include detailed property descriptions, clear payment terms, and comply with local spatial planning regulations. The document needs to address both modern property rights and potential traditional (adat) rights, making it unique to the Indonesian legal context. It serves as the foundation for the property transfer process and must be registered with the local land office to effect the legal transfer of title.

1. Parties: Identification and details of the Seller and Buyer, including their full legal names, ID numbers (KTP), addresses, and any relevant marital status information

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

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Purchase Price, Completion Date, and other relevant terms

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

5. Purchase Price: Agreed purchase price, payment terms, deposit requirements, and payment schedule

6. Payment Method: Specified method of payment, including bank account details and verification procedures

7. Conditions Precedent: Conditions that must be satisfied before the sale can proceed, including title verification and regulatory approvals

8. Seller's Warranties: Warranties regarding ownership, absence of encumbrances, and compliance with spatial planning regulations

9. Transfer Process: Steps for legal transfer of title, including PPAT (land deed official) requirements and registration procedures

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

11. Completion: Process and requirements for completion of the sale, including documentation and handover procedures

12. Default and Termination: Consequences of default by either party and circumstances allowing contract termination

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional details

14. Execution: Signature blocks and witnessing requirements