Property Sales Contract Between Seller And Buyer Template for Indonesia

The Property Sales Contract Between Seller And Buyer is a fundamental legal instrument in Indonesian property transactions, essential for both residential and commercial property transfers. This document is required whenever there is a transfer of property ownership in Indonesia, whether between individuals, corporate entities, or a combination thereof. The contract must comply with the Indonesian Civil Code, Basic Agrarian Law, and various property-related regulations. It serves to document the agreed terms of sale, including property details, purchase price, payment terms, and conditions for transfer. The document must be executed in the form of a notarial deed and registered with the National Land Office (BPN) to ensure legal validity. It includes provisions for both parties' rights and obligations, property transfer procedures, and specific requirements related to Indonesian property ownership laws, including any foreign ownership restrictions where applicable.

1. Parties: Full legal identification of the Seller and Buyer, including ID numbers, addresses, and citizenship status as required by Indonesian law

2. Background: Context of the sale, brief property overview, and confirmation of Seller's ownership rights

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

4. Property Details: Comprehensive description of the property including certificate number, land area, building specifications, and registered address

5. Purchase Price: Agreed purchase price, payment structure, and payment methods in accordance with Indonesian banking regulations

6. Payment Terms: Detailed payment schedule, deposit requirements, and conditions for installments if applicable

7. Conditions Precedent: Conditions that must be fulfilled before the sale can proceed, including necessary permits and approvals

8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, absence of disputes, and compliance with laws

9. Buyer's Representations and Warranties: Buyer's declarations regarding legal capacity and financial ability to purchase

10. Closing Requirements: Documents and actions required for completion of the sale, including notarial deed requirements

11. Transfer of Title: Process and requirements for legal transfer of property ownership

12. Taxes and Costs: Allocation of transaction taxes, registration fees, and other costs between parties

13. Risk and Insurance: Transfer of risk and insurance responsibilities

14. Default and Termination: Consequences of breach and conditions for contract termination

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

16. Dispute Resolution: Procedures for handling disputes, including choice of forum and mediation requirements