Promissory Note For Land Purchase Template for Indonesia

A Promissory Note for Land Purchase is a crucial document in Indonesian real estate transactions, particularly when the purchase price is to be paid in installments or at a future date. This document type combines the security of a promissory note with specific requirements for land transactions under Indonesian law. It must comply with both the Indonesian Civil Code and the Basic Agrarian Law, requiring execution before a notary public and registration with relevant land authorities. The document is commonly used in both commercial and residential property transactions, providing legal protection for sellers while giving buyers a structured payment framework. It includes essential details such as property specifications, payment terms, interest rates (if applicable), and default provisions, all of which must align with Indonesian legal requirements for both promissory notes and land transfers.

1. Header: Title of document, date, and document reference number

2. Parties: Full legal names and details of the Promisor (buyer) and Promisee (seller), including their official identification numbers (KTP), addresses, and any relevant capacities

3. Background: Brief context of the land purchase agreement and reason for the promissory note

4. Definitions: Key terms used in the document including 'Property', 'Purchase Price', 'Due Date', and other relevant terms

5. Promise to Pay: Clear statement of the promise to pay, including the exact amount, currency, and payment terms

6. Property Details: Complete description of the land being purchased, including certificate number, location, boundaries, and size

7. Payment Terms: Detailed payment schedule, installment amounts, and due dates

8. Interest Rate: Applicable interest rate, if any, and calculation method

9. Default Provisions: Consequences of default and remedies available to the Promisee

10. Security: Details of any security or collateral provided for the promise to pay

11. Execution: Signature blocks for all parties, including provision for notary attestation