Property Agreement Contract Template for Indonesia

The Property Agreement Contract serves as a fundamental legal instrument in Indonesian real estate transactions, operating under the framework of the Basic Agrarian Law No. 5/1960 (UUPA) and related property regulations. This document is essential for formalizing property transactions, whether for residential, commercial, or industrial purposes. It encompasses crucial elements such as property identification, ownership rights, payment terms, and compliance requirements with local regulations. The agreement is typically used when transferring property rights, establishing long-term lease arrangements, or creating property management frameworks. It must address specific Indonesian legal requirements, including proper land certification, spatial planning compliance, and building permits. The document's structure and content are designed to protect all parties' interests while ensuring adherence to Indonesian property law and registration requirements.

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration numbers for companies

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

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

4. Property Details: Detailed description of the property, including address, boundaries, and certificate numbers

5. Purchase Price and Payment Terms: Agreed purchase price, payment schedule, and payment methods

6. Transfer of Ownership: Process and conditions for transferring property ownership

7. Representations and Warranties: Statements of fact and guarantees by both parties regarding the property and their capacity to enter into the agreement

8. Rights and Obligations: Detailed responsibilities of each party before, during, and after the transfer

9. Tax Obligations: Allocation of responsibility for various taxes and fees

10. Default and Remedies: Consequences of breach and available remedies

11. Force Majeure: Provisions for unforeseen circumstances

12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction

13. Dispute Resolution: Process for resolving disputes

14. Notices: How formal communications between parties should be made

15. Execution: Signature blocks and execution requirements