Document background
The Non-Binding Letter of Intent (Real Estate) is a crucial preliminary document used in Indonesian real estate transactions to establish the framework for negotiations between parties. It is typically employed when parties have reached a general understanding but need to formalize their intentions before proceeding with detailed due diligence and final agreements. This document must comply with Indonesian property laws, including the Basic Agrarian Law (UUPA) and foreign investment regulations. While maintaining its non-binding nature, it includes essential elements such as property description, proposed terms, timelines, and any exclusivity arrangements. It serves as a roadmap for the transaction while providing flexibility for parties to adjust terms based on due diligence findings and further negotiations. The document is particularly important in complex real estate transactions involving foreign investors, as it helps address preliminary regulatory and compliance considerations under Indonesian law.
