Real Estate Purchase Agreement With Seller Financing Template for Indonesia

The Real Estate Purchase Agreement With Seller Financing is essential for transactions where traditional bank financing is not utilized and the seller agrees to finance the purchase directly. This arrangement is particularly relevant in the Indonesian market where access to conventional mortgage financing may be limited or when parties prefer direct financing arrangements. The document must comply with Indonesian property law, including the Basic Agrarian Law (UUPA) and relevant financing regulations. It includes comprehensive provisions for property transfer, security arrangements, payment terms, and default remedies, while ensuring compliance with local registration requirements and notarial procedures. The agreement is suitable for both residential and commercial properties, providing flexibility in financing terms while maintaining legal security for both parties under Indonesian law.

1. Parties: Identification of the Seller and Buyer with complete legal names and details as required under Indonesian law

2. Background: Context of the transaction, including property ownership status and financing arrangement overview

3. Definitions: Definitions of key terms used throughout the agreement, including Indonesian legal terminology

4. Property Details: Comprehensive description of the property, including certificate number, land rights type, and boundaries as per Indonesian land registration

5. Purchase Price and Payment Terms: Total purchase price, down payment, and seller financing structure

6. Financing Terms: Detailed terms of seller financing including interest rate, payment schedule, and loan duration

7. Security and Collateral: Security arrangements including mortgage rights (Hak Tanggungan) and other security measures

8. Transfer of Title: Process and requirements for legal transfer of property ownership under Indonesian law

9. Representations and Warranties: Seller's and Buyer's representations regarding property, authority, and compliance with Indonesian law

10. Conditions Precedent: Conditions that must be met before closing, including regulatory approvals and documentation

11. Closing Procedure: Steps for completing the transaction, including notarial deed requirements

12. Default and Remedies: Consequences of default by either party and available legal remedies

13. Tax Obligations: Allocation of tax responsibilities including transfer tax and duty

14. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures

15. Execution: Formal signing requirements including notarization provisions