Land Sale Contract Template for Indonesia

The Land Sale Contract is a fundamental legal document used in Indonesia for transferring land ownership between parties. It is essential for any transaction involving the sale of land, whether for residential, commercial, or industrial purposes. The document must comply with Indonesian legal requirements, particularly the Basic Agrarian Law and related regulations, and requires execution before a Land Deed Official (PPAT). This contract type is crucial as it forms the basis for the official deed of transfer (Akta Jual Beli) and subsequent registration with the National Land Office (BPN). It includes comprehensive details about the land, parties' obligations, payment terms, and regulatory compliance requirements, while addressing specific Indonesian law considerations such as land use rights, foreign ownership restrictions, and local property regulations.

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

2. Background: Context of the transaction, including brief description of the land and the parties' intention to enter into a sale and purchase agreement

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

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

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

6. Representations and Warranties: Seller's warranties regarding ownership, absence of encumbrances, and compliance with laws; buyer's warranties regarding capability to purchase

7. Conditions Precedent: Conditions that must be fulfilled before the transfer of land ownership can occur

8. Completion: Process and requirements for completing the sale, including execution of deed of sale (AJB) before PPAT

9. Rights and Obligations: Detailed responsibilities of both parties before, during, and after the transfer

10. Taxes and Costs: Allocation of transaction costs, including transfer tax, notary fees, and registration fees

11. Default and Termination: Consequences of breach and circumstances under which the agreement may be terminated

12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction for disputes

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

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

15. Execution: Signature blocks and formal closing language as required under Indonesian law