Land Sale Agreement Template for Indonesia

The Land Sale Agreement is a crucial legal document used in Indonesian property transactions to formalize the transfer of land ownership rights. It must be prepared and executed in accordance with Indonesian law, particularly the Basic Agrarian Law and related regulations. This document is essential when any party wishes to purchase or sell land in Indonesia, whether for residential, commercial, or industrial purposes. The agreement includes detailed property descriptions, rights and obligations of parties, payment terms, and specific requirements for legal transfer under Indonesian law. It must be executed before a Land Deed Official (PPAT) and properly registered with the National Land Office (BPN). The document addresses various aspects including title verification, tax obligations, and transfer procedures, while considering restrictions on foreign ownership and local spatial planning regulations.

1. Parties: Identification of the seller and buyer, including complete legal names, addresses, and ID numbers as required by Indonesian law

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

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

4. Property Details: Comprehensive description of the land, including certificate number, land rights type (e.g., Hak Milik), boundaries, and total area

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

6. Conditions Precedent: Conditions that must be satisfied before completion, including title verification and necessary governmental approvals

7. Seller's Warranties: Warranties regarding ownership, absence of encumbrances, and compliance with Indonesian land regulations

8. Buyer's Warranties: Warranties regarding capacity to purchase and compliance with Indonesian property ownership regulations

9. Completion: Process and requirements for completion of the sale, including signing of deed of transfer (AJB) before PPAT

10. Costs and Taxes: Allocation of transaction costs, including BPHTB, PPh, and notary fees

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

12. Governing Law: Specification of Indonesian law as governing law and jurisdiction

13. Dispute Resolution: Process for resolving disputes, typically through Indonesian courts or agreed arbitration

14. Notices: Process and requirements for formal communications between parties

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