Pre Sale Purchase Agreement Template for Indonesia

The Pre Sale Purchase Agreement is a fundamental document in Indonesian property development transactions, used when purchasing property that is yet to be constructed or is under construction. This agreement is essential in the Indonesian real estate market where pre-selling is a common practice, particularly for apartment units and planned developments. It is governed by Indonesian law, specifically the Civil Code and various property regulations including Government Regulation No. 14 of 2016 on Housing and Settlement. The document outlines crucial elements such as property specifications, payment terms, construction timelines, and quality standards, while ensuring compliance with local property development regulations. It serves to protect both developer and purchaser interests, establishing clear rights and obligations throughout the construction period until final handover.

1. Parties: Identification of the Developer/Seller and the Purchaser with complete legal details

2. Background: Context of the development project, property status, and basis for the pre-sale arrangement

3. Definitions: Key terms used throughout the agreement including property specifications, completion dates, and technical terms

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

5. Purchase Price: Total purchase price, payment schedule, and payment methods in accordance with Indonesian regulations

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

7. Construction and Completion: Timeline for construction, expected completion date, and construction quality standards

8. Handover Process: Procedures for property inspection, handover, and documentation requirements

9. Warranties and Guarantees: Developer's warranties on construction quality and commitment to remedy defects

10. Rights and Obligations: Detailed responsibilities of both parties during construction and after handover

11. Default and Remedies: Consequences of default by either party and available remedial actions

12. Force Majeure: Provisions for unforeseen circumstances affecting construction or delivery

13. Governing Law: Confirmation of Indonesian law application and jurisdiction

14. Dispute Resolution: Process for handling disputes, including mediation and legal proceedings

15. Notices: Methods and addresses for official communications between parties

16. General Provisions: Standard boilerplate clauses including severability and entire agreement