The Letter of Reservation is a crucial preliminary document in Indonesian property transactions, commonly used when a potential buyer wishes to secure their interest in a property before proceeding with the full purchase agreement. This document type is particularly relevant in new development projects or pre-sale situations where properties are being sold off-plan. The Letter of Reservation typically includes the reservation fee amount, the duration of the reservation period, and basic terms of the intended purchase. It serves as a formal commitment while allowing time for due diligence, financing arrangements, or other preparations. Under Indonesian law, this document provides certain legal protections for both parties and is often a prerequisite for proceeding with a full sale and purchase agreement. The document must comply with Indonesian civil law, property regulations, and consumer protection requirements.
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1. Date and Reference Number: The formal date of the letter and any reference number assigned
2. Addressee Details: Complete details of the property developer/owner including company name, address, and registration number
3. Property Details: Specific description of the property being reserved including location, unit number, size, and type
4. Reservation Amount: The amount of reservation fee being paid and payment details
5. Reservation Period: Duration for which the property will be reserved and the expiry date of the reservation
6. Basic Terms: Key terms including the intended purchase price and basic conditions of the future sale
7. Refund Policy: Terms and conditions for refund of the reservation fee
8. Signatory Block: Space for signatures, names, and details of both parties
1. Special Conditions: Any special terms or conditions specific to this reservation, used when there are unique circumstances or requirements
2. Foreign Ownership Declaration: Required when the potential buyer is a foreign national, outlining compliance with Indonesian foreign ownership regulations
3. Payment Schedule Overview: Preliminary payment schedule for the full purchase, included when parties want to document the intended payment structure
4. Property Specifications: Detailed specifications of the property, included for off-plan properties or when specific features are being promised
5. Broker Details: Information about any broker or agent involved in the transaction, included when the reservation is made through an intermediary
1. Property Layout/Floor Plan: Visual representation of the property layout and dimensions
2. Proof of Reservation Payment: Copy of payment receipt or transfer confirmation for the reservation fee
3. Identification Documents: Copies of ID cards/passports of parties involved
4. Property Title Information: Basic information about the property's current ownership and legal status
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