Property Sell Agreement Template for Indonesia

The Property Sale Agreement is a crucial legal document used in Indonesian real estate transactions to formalize and secure the transfer of property ownership. This document is essential when any party (individual or corporate) wishes to sell or purchase property in Indonesia, ensuring compliance with local regulations including the Civil Code (KUHPerdata) and Basic Agrarian Law. The agreement must be prepared in accordance with Indonesian legal requirements and typically requires execution before a licensed land deed official (PPAT). It includes comprehensive details about the property, parties involved, payment terms, and specific conditions required under Indonesian law. This document is particularly important as it forms the basis for the subsequent transfer of title and registration with the National Land Office (BPN), and includes provisions for tax obligations and other regulatory requirements specific to Indonesian property transactions.

1. Parties: Identification and details of the Seller and Buyer, including their legal capacity to enter into the agreement

2. Background: Context of the transaction and brief description of the property being sold

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

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

5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments

6. Payment Method: Specified method of payment and banking details

7. Conditions Precedent: Conditions that must be fulfilled before the sale can proceed

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

9. Completion: Process and requirements for completing the sale, including deed transfer requirements

10. Tax Obligations: Allocation of tax responsibilities including transfer tax (BPHTB) and other applicable taxes

11. Risk and Insurance: Transfer of risk and insurance obligations

12. Default and Termination: Consequences of default and conditions for termination

13. Governing Law: Confirmation of Indonesian law as governing law

14. Dispute Resolution: Process for resolving disputes including jurisdiction of Indonesian courts