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Property Transfer Contract

Property Transfer Contract Template for Indonesia

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Key Requirements PROMPT example:

Property Transfer Contract

"I need a Property Transfer Contract for a commercial building in Jakarta's business district, with specific provisions for existing tenants and a phased payment structure to be completed by March 2025."

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Document background
The Property Transfer Contract is a crucial legal instrument in Indonesian property law, used to document and effectuate the transfer of property ownership rights. This document is essential for any property transaction in Indonesia, whether involving residential, commercial, or industrial properties. It must comply with the Indonesian Civil Code, Basic Agrarian Law (UUPA), and various property-related regulations. The contract includes comprehensive details about the property, parties involved, purchase price, payment terms, and transfer conditions. It requires execution before a land deed official (PPAT) and subsequent registration with the National Land Office (BPN). The document is particularly important as it serves as the primary evidence of property ownership transfer and must account for specific Indonesian legal requirements, including restrictions on foreign ownership and local property regulations.
Suggested Sections

1. Parties: Identification and details of the transferor (seller) and transferee (buyer), including their legal capacity to enter into the agreement

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

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

4. Property Details: Comprehensive description of the property being transferred, including certificate numbers, boundaries, and registered address

5. Transfer Price and Payment Terms: Agreed purchase price, payment schedule, and method of payment

6. Representations and Warranties: Seller's warranties regarding property ownership, absence of encumbrances, and other material facts

7. Transfer Process: Steps and procedures for executing the transfer, including registration requirements

8. Tax Obligations: Allocation of responsibility for transfer taxes, stamp duty, and other applicable taxes

9. Handover Process: Timeline and conditions for physical handover of the property

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

11. Dispute Resolution: Process for resolving any disputes related to the transfer

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Broker/Agent Provisions: Include when a property agent or broker is involved in the transaction

2. Mortgage or Financing: Include when the purchase involves bank financing or existing mortgages

3. Tenant Provisions: Include when the property is currently leased to tenants

4. Development Rights: Include when there are specific development rights or restrictions that need to be transferred

5. Environmental Provisions: Include when there are environmental concerns or obligations

6. Foreign Ownership Provisions: Include when either party is a foreign national or entity

7. Power of Attorney: Include when any party is acting through an authorized representative

Suggested Schedules

1. Property Description Schedule: Detailed technical description of the property, including exact measurements and boundaries

2. Title Documents: Copies of relevant property certificates and title documents

3. Payment Schedule: Detailed breakdown of payment installments and timing if not paid in full

4. Property Inspection Report: Results of property inspection and condition assessment

5. Tax Clearance Certificates: Proof of payment of relevant property taxes

6. Land Use Certificates: Documents showing current land use designation and permissions

7. Property Photographs: Recent photographs documenting the current state of the property

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Property
Land Certificate
Transfer Date
Completion Date
Purchase Price
PPAT
BPN
Encumbrances
Title Deed
Effective Date
Business Day
Completion Documents
Due Diligence
Force Majeure
Handover Date
IMB (Building Permit)
Land Rights
Material Adverse Change
Parties
Payment Date
Property Tax
Registration
Seller's Warranties
Transfer Tax
Transfer Documents
BPHTB (Duty on Acquisition of Land and Building Rights)
PBB (Land and Building Tax)
Notarial Deed
Permitted Use
Property Documents
Purchase Deed
Representatives
SHM (Hak Milik Certificate)
HGB (Right to Build Certificate)
Working Hours
Clauses
Identification of Parties
Recitals
Definitions
Property Description
Purchase Price
Payment Terms
Transfer of Title
Representations and Warranties
Conditions Precedent
Due Diligence
Property Handover
Tax Obligations
Registration Requirements
Seller's Covenants
Buyer's Covenants
Risk and Insurance
Default
Termination
Force Majeure
Notices
Assignment
Severability
Entire Agreement
Amendment
Governing Law
Dispute Resolution
Costs and Expenses
Compliance with Laws
Property Inspection
Title and Ownership
Encumbrances
Environmental Matters
Indemnification
Confidentiality
Further Assurance
Execution
Relevant Industries

Real Estate

Property Development

Construction

Banking and Finance

Legal Services

Property Management

Agriculture (for land transfers)

Industrial Development

Commercial Property

Residential Property

Hospitality

Retail

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Finance

Tax

Business Development

Facilities Management

Asset Management

Risk Management

Corporate Secretariat

Operations

Relevant Roles

Real Estate Manager

Property Lawyer

Legal Counsel

Property Developer

Land Acquisition Manager

Compliance Officer

Real Estate Agent

Property Investment Manager

Notary Public

Land Registration Officer

Tax Consultant

Corporate Secretary

Business Development Manager

Facilities Manager

Asset Manager

Industries
Indonesian Civil Code (KUHPerdata): Provides the fundamental legal framework for contracts and property rights, including requirements for valid contracts and property transfer procedures
Basic Agrarian Law No. 5 of 1960 (UUPA): Fundamental law governing land rights in Indonesia, including different types of land titles and requirements for property ownership
Government Regulation No. 24 of 1997: Regulates land registration procedures and requirements for property transfer documentation
Law No. 20 of 2000 on Land and Building Title Transfer Duty (BPHTB): Governs the tax obligations related to property transfers and acquisitions
Minister of Agrarian Affairs Regulation No. 3 of 1997: Implements detailed provisions of Government Regulation No. 24 of 1997, including technical requirements for property registration
Law No. 28 of 2009: Regulates regional taxes and retributions, including those applicable to property transfers
Law No. 11 of 2020 (Omnibus Law): Recent comprehensive law that includes updates to property and investment regulations, affecting property transfers
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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