The Offer To Purchase (Real Estate) document serves as the initial formal step in property acquisition transactions within Indonesia's legal framework. It is used when a potential buyer wishes to formalize their interest in purchasing real estate property, whether residential, commercial, or industrial. The document must comply with Indonesian property laws, including the Basic Agrarian Law and civil code requirements, and includes crucial details such as property description, purchase price, payment terms, and conditions precedent. This document is particularly important as it forms the basis for subsequent negotiations and, if accepted, leads to the final sale and purchase agreement. Special considerations are incorporated when foreign buyers are involved, as Indonesian law places specific restrictions on foreign property ownership.
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1. Parties: Identification of the potential buyer (offeror) and seller (property owner), including full legal names, addresses, and identification numbers
2. Background: Brief context of the offer, including property interest and general intent of the transaction
3. Definitions: Key terms used throughout the document, including 'Property', 'Purchase Price', 'Deposit', 'Closing Date', etc.
4. Property Details: Complete legal description of the property, including certificate number, address, boundaries, and land area
5. Purchase Price: The offered purchase amount, currency, payment terms, and deposit details
6. Payment Terms: Structure of payments, including deposit, down payment, and balance payment schedule
7. Due Diligence Period: Timeframe and conditions for property inspection, title search, and other investigations
8. Conditions Precedent: Conditions that must be satisfied before the transaction becomes binding
9. Closing Process: Details of the closing procedure, including documentation requirements and timeline
10. Representations and Warranties: Statements of fact by both parties regarding their capacity to enter the agreement and property condition
11. Default and Remedies: Consequences of breach by either party and available remedies
12. Execution: Signature blocks and execution requirements
1. Financing Contingency: To be included if the offer is contingent on the buyer obtaining financing
2. Property Management: Include if the property is currently tenanted or if there are existing management arrangements
3. Foreign Ownership Provisions: Required if the buyer is not an Indonesian citizen, detailing compliance with foreign ownership restrictions
4. Broker/Agent Provisions: Include if real estate agents are involved in the transaction
5. Building Inspection Contingency: Optional clause allowing for professional building inspection and potential price negotiation
6. Existing Tenancies: Include if the property has current tenants and how their leases will be handled
7. Furniture and Fixtures: Required if the offer includes any movable property or fixtures
1. Schedule A - Property Details: Detailed property description, including land certificate details, boundaries, and area calculations
2. Schedule B - Payment Schedule: Detailed breakdown of payment terms, amounts, and due dates
3. Schedule C - Due Diligence Checklist: List of required documents and inspections to be completed during due diligence
4. Schedule D - Property Inventory: If applicable, list of furniture, fixtures, and equipment included in the sale
5. Appendix 1 - Property Title Documents: Copies of relevant land certificates and ownership documents
6. Appendix 2 - Property Photos: Recent photographs of the property and its boundaries
7. Appendix 3 - Building Permits: Copies of relevant building permits and certificates
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