Land Purchase Contract Template for Indonesia

The Land Purchase Contract is a fundamental document in Indonesian property transactions, essential for legally transferring land ownership between parties. It must comply with Indonesia's unique land law system, which combines elements of customary (adat) law with modern regulations. This contract is required whenever there is a transfer of land rights in Indonesia, whether for residential, commercial, or industrial purposes. The document must address specific requirements under the Basic Agrarian Law and related regulations, including proper identification of the land, verification of ownership rights, and compliance with foreign ownership restrictions if applicable. It requires execution before a Land Deed Official (PPAT) and subsequent registration with the National Land Office to ensure legal validity. The contract includes crucial details about the property, parties involved, purchase price, payment terms, and various warranties and representations required under Indonesian law.

1. Parties: Identification of the seller and purchaser with complete legal names, addresses, and identity numbers as required under Indonesian law

2. Background: Context of the transaction, including brief history of the land ownership and purpose of the sale

3. Definitions: Definitions of key terms used throughout the agreement, including technical terms related to Indonesian land law

4. Object of Sale: Detailed description of the land including certificate number, location, boundaries, and total area as registered with the National Land Office

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

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

7. Representations and Warranties: Seller's warranties regarding land ownership, absence of disputes, and legal status; buyer's warranties regarding payment capability

8. Conditions Precedent: Conditions that must be fulfilled before the transaction can be completed, including regulatory approvals

9. Completion Process: Steps for transferring ownership, including required notarial deeds and registration with the National Land Office

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

11. Risk and Insurance: Transfer of risk and responsibility for the property

12. Default and Termination: Consequences of breach and circumstances allowing contract termination

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

14. Dispute Resolution: Process for resolving disputes, including choice of forum and method

15. Execution: Signature blocks and formal execution requirements