Document background
The Promissory Note (Real Estate) is a specialized financial instrument used in Indonesian real estate transactions where a debt obligation needs to be secured by real property. This document is commonly used in property financing, development projects, and real estate investments where traditional bank financing may not be preferred or available. It combines the straightforward nature of a promissory note with the security of real estate collateral, making it particularly useful for private lending arrangements. The document must comply with multiple Indonesian regulations, including the Commercial Code for promissory notes and the Law on Mortgage Rights Over Land for property security. It requires proper execution before a Notary Public and/or Land Deed Official (PPAT) and must be registered with relevant authorities to ensure enforceability of the security interest.
