Real Estate Purchase Agreement Contract Template for Indonesia

The Real Estate Purchase Agreement Contract is a fundamental legal document used in Indonesian property transactions to formalize the transfer of real estate ownership between parties. It is essential for both residential and commercial property transactions in Indonesia, requiring careful consideration of local property laws, including the Basic Agrarian Law and related regulations. The agreement must be executed before a licensed land deed official (PPAT) and requires registration with the National Land Office. This document typically includes comprehensive details about the property, parties involved, payment terms, warranties, and specific conditions required under Indonesian law. It serves as the primary instrument for protecting both buyer's and seller's interests while ensuring compliance with local property transfer regulations, tax requirements, and ownership restrictions, particularly those affecting foreign investors.

1. Parties: Identification of the seller and purchaser with complete legal details as required by Indonesian law

2. Background: Context of the transaction and brief property overview

3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terminology

4. Property Details: Comprehensive description of the property, including certificate numbers, land rights type, and boundaries

5. Purchase Price: Agreement on price, payment terms, and payment schedule

6. Payment Method: Specified payment procedures and account details

7. Conditions Precedent: Requirements to be met before completion, including necessary governmental approvals

8. Seller's Representations and Warranties: Declarations regarding property ownership, absence of disputes, and legal status

9. Buyer's Representations and Warranties: Declarations regarding legal capacity and financial ability to purchase

10. Completion Requirements: Steps for property handover and registration transfer

11. Tax Obligations: Allocation of tax responsibilities between parties

12. Title Transfer: Procedures for legal transfer of title at the Land Office

13. Risk and Insurance: Transfer of risk and insurance requirements

14. Default and Termination: Consequences of breach and termination procedures

15. Dispute Resolution: Methods and jurisdiction for resolving disputes

16. Governing Law: Specification of Indonesian law as governing law

17. Notices: Communication procedures between parties

18. General Provisions: Standard boilerplate clauses adapted to Indonesian law