Pre Sale Agreement Template for Indonesia

The Pre Sale Agreement is a fundamental document in Indonesian property transactions where properties are sold before completion of construction. This agreement is governed by Indonesian law, particularly the Civil Code and specific regulations such as Government Regulation No. 14 of 2016 and Minister of Public Housing Regulation No. 11/PERMEN/M/2019. It is used when developers sell properties during the construction phase, providing legal protection for both buyers and sellers. The document includes detailed specifications of the property, payment schedules, construction timelines, and quality standards, ensuring compliance with local property laws and regulations. The Pre Sale Agreement serves as a crucial step before the final sale and purchase deed (AJB) can be executed before a notary public.

1. Parties: Identification of the seller/developer and buyer with complete legal details

2. Background: Context of the agreement, including property development status and intention to enter into a pre-sale arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Object of Sale: Detailed description of the property being sold, including specifications and location

5. Purchase Price: Total purchase price, payment schedule, and payment methods

6. Payment Terms: Detailed payment structure including installments, deposit requirements, and payment conditions

7. Construction Progress and Timeline: Expected construction milestones and completion schedule

8. Specifications and Standards: Agreed quality standards, materials, and specifications of the property

9. Rights and Obligations: Detailed rights and obligations of both parties during the pre-sale period

10. Property Handover: Conditions and process for final property handover

11. Warranties and Guarantees: Developer's warranties regarding property quality and construction

12. Default and Remedies: Consequences of default by either party and available remedies

13. Force Majeure: Provisions for unforeseen circumstances affecting contract performance

14. Governing Law: Confirmation of Indonesian law as governing law

15. Dispute Resolution: Process for resolving disputes between parties

16. Notices: Communication methods and contact details for official notices

17. Term and Termination: Duration of agreement and conditions for termination