Document background
A Letter Of Intent House Purchase is commonly used in Indonesian property transactions as an initial step before entering into a binding sale and purchase agreement. This document is particularly relevant when parties want to formalize their preliminary negotiations and set clear parameters for the proposed transaction. It typically comes into play after initial verbal agreements but before comprehensive due diligence and final contract preparation. The document needs to comply with Indonesian property laws, including the Basic Agrarian Law and relevant property regulations. It's especially crucial in complex transactions or when dealing with high-value properties, as it helps establish clear expectations and timelines while protecting both parties' interests during the negotiation phase. For transactions involving foreign buyers, additional considerations regarding Indonesian foreign ownership restrictions must be addressed.
