Land Sale Agreement Form Template for Indonesia

The Land Sale Agreement Form is a crucial legal document used in Indonesian property transactions to formalize the transfer of land ownership between parties. This document is essential when any type of land, whether vacant, developed, or agricultural, is being sold in Indonesia. It must comply with the Basic Agrarian Law No. 5 of 1960 and related regulations, including requirements for land registration and transfer procedures at the National Land Office (BPN). The agreement covers all aspects of the transaction, from property description and price to warranties and completion requirements, while addressing specific Indonesian legal requirements such as the involvement of a Land Deed Official (PPAT) and proper tax documentation. It's particularly important as land ownership in Indonesia is subject to strict regulations, especially regarding foreign ownership and land use restrictions.

1. Parties: Identification of the seller and purchaser with complete details as required under Indonesian law, including their KTP (ID card) numbers

2. Background: Context of the transaction and brief description of the property being sold

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Purchase Price: Agreed purchase price and payment terms, including deposit arrangements

6. Payment Method: Details of how and when payments will be made, including bank account details

7. Conditions Precedent: Conditions that must be satisfied before the sale can proceed

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

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

10. Completion: Process and requirements for completing the sale, including timing and location

11. Land Registration: Process for transferring title at the National Land Office (BPN)

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

13. Default and Termination: Consequences of default and circumstances allowing termination

14. Governing Law: Confirmation of Indonesian law as governing law

15. Dispute Resolution: Process for resolving disputes, including jurisdiction of Indonesian courts

16. Execution: Signing requirements and date