Real Estate Contract Of Sale Template for Indonesia

The Real Estate Contract of Sale is a fundamental legal document used in Indonesian property transactions to formalize the transfer of real estate ownership. It is essential for any property sale in Indonesia, whether residential, commercial, or industrial. The document must comply with various Indonesian regulations, including the Civil Code (KUHPerdata), Basic Agrarian Law, and local property regulations. This contract type is particularly important as it must address specific requirements of Indonesian property law, such as land certification, property registration, and ownership restrictions. It includes crucial details about the property, parties involved, payment terms, warranties, and completion requirements. The document becomes especially complex when dealing with foreign ownership, which is subject to strict regulations under Indonesian law, or when handling specific types of property rights such as Hak Guna Bangunan (Right to Build) or Hak Milik (Freehold).

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and identification numbers as required by Indonesian law

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

3. Definitions: 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 boundaries as per land registry

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

6. Terms of Payment: Detailed payment schedule, deposit requirements, and completion payment arrangements

7. Conditions Precedent: Conditions that must be satisfied before completion, including necessary governmental approvals

8. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and compliance with local regulations

9. Buyer's Warranties: Warranties regarding capacity to purchase and financial ability to complete the transaction

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

11. Tax Obligations: Allocation of tax responsibilities including Land and Building Transfer Duty (BPHTB) and Income Tax

12. Risk and Insurance: Transfer of risk and insurance requirements during the transaction period

13. Default Provisions: Consequences of default by either party and remedies available

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

15. Execution: Formal execution block meeting Indonesian notarial requirements