Real Estate Purchase Agreement Template for Indonesia

The Real Estate Purchase Agreement is a crucial document used in Indonesian property transactions to formalize the transfer of real estate ownership between parties. It serves as the primary contract governing the sale and purchase of property, whether residential, commercial, or industrial. This document must be drafted in compliance with Indonesian property laws, particularly the Basic Agrarian Law and related regulations. It includes essential elements such as property details, price, payment terms, and conditions for transfer, while accounting for specific Indonesian requirements like the involvement of a land deed official (PPAT) and mandatory tax payments. The agreement is particularly important as it forms the basis for the final notarial deed (Akta Jual Beli) and subsequent property registration with the National Land Office (BPN).

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

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 registry requirements

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

6. Payment Method: Details of how payments will be made, including bank account information and currency

7. Conditions Precedent: Conditions that must be met before the sale can proceed, including necessary governmental approvals

8. Seller's Representations and Warranties: Seller's declarations 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 Process: Steps for completing the transaction, including timing and documentation requirements

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

12. Taxes and Costs: Allocation of transaction costs, including transfer tax (BPHTB) and other applicable taxes

13. Default and Remedies: Consequences of breach by either party and available remedies

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

15. Notices: How formal communications between parties should be made

16. Execution: Signature requirements and execution process