Property Agreement Template for Indonesia

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Key Requirements PROMPT example:

Property Agreement

"I need a Property Agreement for purchasing a commercial building in Jakarta's business district for my Singapore-based company, ensuring compliance with Indonesian foreign ownership restrictions and including specific provisions for the building's existing tenants who will remain after the purchase is completed in March 2025."

Document background
The Property Agreement serves as a fundamental legal instrument for real estate transactions in Indonesia, operating within the framework of Indonesian property law and the Civil Code. This document is essential when transferring, purchasing, or leasing property rights, and must comply with specific requirements under Indonesian law, including the Basic Agrarian Law (UUPA) and regional property regulations. It is particularly important given Indonesia's unique land title system and restrictions on foreign ownership. The agreement typically requires execution before an Indonesian notary (PPAT) and must be registered with relevant authorities. It includes comprehensive details about the property, parties' obligations, payment terms, and specific provisions required by Indonesian property law. This document is crucial for both commercial and residential property transactions, and can be adapted for various types of property rights recognized under Indonesian law.
Suggested Sections

1. Parties: Details of the parties entering into the agreement, including their legal names, addresses, and registration numbers for companies

2. Background: Context of the agreement, including brief history of the property and purpose of the transaction

3. Definitions: Definitions of key terms used throughout the agreement, including Indonesian legal terms

4. Property Details: Comprehensive description of the property including certificate number, land area, building specifications, and boundaries as per Indonesian land registration requirements

5. Transaction Terms: Core terms of the property transaction including price/rent, payment terms, and payment method in accordance with Indonesian banking regulations

6. Rights and Obligations: Detailed responsibilities of each party under Indonesian law, including maintenance obligations and permitted use of property

7. Title and Ownership: Declarations regarding legal ownership, encumbrances, and transfer process in accordance with Indonesian property law

8. Representations and Warranties: Legal statements and guarantees about the property's status and parties' authority to enter into the agreement

9. Completion Process: Steps for completing the transaction, including notarial requirements and registration procedures

10. Default and Remedies: Consequences of breach and available legal remedies under Indonesian law

11. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

12. Notices: Process for formal communications between parties

13. General Provisions: Standard legal provisions including severability, entire agreement, and amendments

Optional Sections

1. Foreign Ownership Provisions: Required when one party is non-Indonesian, detailing compliance with foreign ownership restrictions

2. Strata Title Provisions: Required for apartments or multi-story properties, including building management and common area rights

3. Tenant Provisions: Required for lease agreements, including terms of occupancy and maintenance responsibilities

4. Mortgage Provisions: Required when the property is subject to mortgage or financing arrangements

5. Development Rights: Required when the property includes undeveloped land or renovation rights

6. Environmental Compliance: Required for properties in environmentally sensitive areas or with specific environmental obligations

7. Cultural Heritage Provisions: Required for properties with cultural or historical significance under Indonesian law

8. Broker Provisions: Required when property agents or brokers are involved in the transaction

Suggested Schedules

1. Property Description Schedule: Detailed technical description of the property, including maps, plans, and photographs

2. Title Documents: Copies of land certificates, building permits, and other ownership documents

3. Payment Schedule: Detailed breakdown of payment terms, installments, and due dates

4. Due Diligence Results: Reports on legal and physical inspection of the property

5. Land Use Certificates: Copies of zoning permits and land use rights certificates

6. Property Tax Documents: Records of property tax payments and obligations

7. Building Specifications: Technical details of building construction and facilities

8. Previous Agreements: Copies of relevant prior agreements affecting the property

9. Power of Attorney: If applicable, notarized power of attorney documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Development

Construction

Banking & Finance

Hospitality

Retail

Commercial Property

Residential Property

Industrial Property

Agriculture

Tourism

Manufacturing

Logistics

Education

Healthcare

Relevant Teams

Legal

Real Estate

Property Management

Facilities Management

Business Development

Operations

Finance

Compliance

Risk Management

Asset Management

Investment

Acquisitions

Development

Contract Administration

Relevant Roles

Real Estate Manager

Property Developer

Legal Counsel

Compliance Officer

Real Estate Agent

Property Manager

Facilities Manager

Investment Manager

Asset Manager

Business Development Manager

Operations Director

Chief Financial Officer

Risk Manager

Contract Administrator

Property Valuer

Real Estate Analyst

Development Director

Acquisition Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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