Real Estate Buy And Sell Agreement Template for Indonesia

The Real Estate Buy and Sell Agreement is a crucial legal document used in Indonesian property transactions to formalize the transfer of real estate ownership. This agreement is essential whenever there is a sale of property, whether residential, commercial, or industrial, and must comply with Indonesian property law, including the Basic Agrarian Law (UU No. 5/1960) and related regulations. The document serves multiple purposes: it protects both parties' interests, establishes clear terms and conditions of the sale, ensures compliance with legal requirements for property transfer, and provides a framework for resolving potential disputes. It includes detailed information about the property, payment terms, warranties, and obligations, and must be executed before a licensed Indonesian land deed official (PPAT). The agreement is particularly important given Indonesia's specific requirements for property ownership, including restrictions on foreign ownership and mandatory requirements for property registration.

1. Parties: Identification of the Seller and Buyer with complete legal names, addresses, and ID numbers as required by Indonesian law

2. Background: Context of the transaction, including brief description of the property and parties' intention to enter into a sale and purchase agreement

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

4. Object of Sale: Detailed description of the property including land certificate number, building permits, address, and specifications as per land registry

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

6. Terms of Payment: Detailed payment structure, installments if any, and consequences of payment default

7. Conditions Precedent: Conditions that must be fulfilled before the completion of the sale, including legal and regulatory requirements

8. Representations and Warranties: Seller's declarations regarding property ownership, encumbrances, and condition; Buyer's warranties regarding capability to purchase

9. Rights and Obligations: Detailed responsibilities of both parties before, during, and after the transaction

10. Property Handover: Terms and process for physical handover of the property, including timing and documentation

11. Title Transfer: Process and requirements for legal transfer of title, including registration requirements

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

13. Default and Termination: Consequences of breach and circumstances under which the agreement may be terminated

14. Dispute Resolution: Methods and procedures for resolving disputes, including jurisdiction and applicable law

15. Notices: Process and requirements for formal communications between parties

16. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

17. Execution: Signature requirements and execution formalities as per Indonesian law