Real Estate Purchase And Sale Agreement Template for Indonesia

When you're buying or selling real estate in Indonesia, you need a Real Estate Purchase and Sale Agreement that complies with Indonesian law. This legal document establishes the binding terms between seller and purchaser before the official deed transfer is executed with a Land Deed Official (PPAT). Under Indonesian property law, this preliminary agreement is essential for protecting both parties' interests and ensuring the transaction meets all regulatory requirements.

When do you need this document?

You need this agreement whenever you're transferring property ownership in Indonesia, whether for residential homes, commercial buildings, or industrial land. It's required before any official deed execution (Akta Jual Beli) and must be completed whether you're an Indonesian citizen purchasing freehold property (Sertifikat Hak Milik) or a foreigner acquiring permitted property rights like Building Use Rights (Hak Guna Bangunan). The agreement is also necessary for apartment purchases under Law No. 20 of 2011, ensuring compliance with strata title regulations. Property agents and banks typically require this document before processing financing or completing due diligence procedures.

Key legal considerations

Your agreement must include comprehensive property descriptions with exact boundaries, certificate numbers, and land registry details as required by Government Regulation No. 24 of 1997. Payment terms should specify deposit amounts, settlement dates, and currency requirements, particularly important given Indonesia's foreign exchange regulations. Include clear warranties about property ownership, encumbrances, and legal compliance, as Indonesian law places significant liability on sellers for undisclosed issues. The document should address tax responsibilities, including Property Transfer Tax (BPHTB) obligations under Law No. 28 of 2009, and specify which party handles registration fees and administrative costs. Consider including termination clauses that comply with Indonesian Civil Code requirements for contract dissolution.

Legal requirements in Indonesia

Indonesian law requires that your agreement identify all parties with complete legal names, addresses, and identification numbers (NIK for Indonesian citizens, passport numbers for foreigners). The document must comply with foreign ownership restrictions under Government Regulation No. 103 of 2015, clearly stating the type of property rights being transferred. Before execution, ensure the seller holds valid title certificates and obtain necessary clearances from local land offices. The agreement must be prepared for execution before a licensed Land Deed Official (PPAT) who will verify the document's compliance with Indonesian property law. All terms must align with Basic Agrarian Law principles and local regional regulations, and the document should be prepared in Indonesian language with certified translations if parties require English versions.