Property Options Contract Template for Indonesia

The Property Options Contract is a crucial document in Indonesian real estate transactions, providing a structured framework for securing potential property purchases while allowing buyers time for due diligence and financing arrangements. This document is particularly useful in situations where parties need to lock in a purchase price while conducting further investigations or securing funds. It must comply with Indonesian property laws, including the Basic Agrarian Law and foreign ownership restrictions, and typically includes detailed property descriptions, option terms, exercise procedures, and completion requirements. The contract serves as a preliminary step to a full property purchase agreement, offering protection to both the option grantor and holder while maintaining flexibility in the transaction timeline.

1. Parties: Identification of the Option Grantor (property owner) and Option Holder, including complete legal names and addresses

2. Background: Context of the agreement and brief description of the property and parties' intentions

3. Definitions: Definitions of key terms used throughout the agreement, including 'Option Period', 'Strike Price', 'Property', etc.

4. Grant of Option: Express grant of the option and its basic terms, including exclusivity provisions

5. Property Details: Detailed description of the property, including certificate numbers, boundaries, and registered title details

6. Option Period: Duration of the option, including start and end dates, and any extension provisions

7. Option Price and Payment: Amount payable for the option itself and payment terms

8. Purchase Price: Agreed purchase price for the property if the option is exercised

9. Exercise of Option: Procedure and requirements for exercising the option

10. Completion Requirements: Steps to be taken upon exercise of the option, including documentation and registration requirements

11. Representations and Warranties: Standard warranties regarding property ownership, absence of encumbrances, and authority to enter into the agreement

12. Termination: Circumstances under which the option may be terminated and consequences

13. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

14. Notices: Process for giving formal notices under the agreement

15. Execution: Signature blocks and execution requirements