Real Estate Sales Agreement Template for Indonesia

The Real Estate Sales Agreement serves as the primary legal instrument for property transactions in Indonesia, essential for both residential and commercial property transfers. This document is specifically designed to comply with Indonesian property law requirements, including the Basic Agrarian Law (UUPA) and relevant property registration regulations. It becomes necessary whenever there is a transfer of property ownership, whether between individuals, corporations, or a combination thereof. The agreement captures crucial details including property specifications, ownership rights, payment terms, and transfer procedures, while ensuring compliance with local land registration requirements and tax obligations. It must be executed before a licensed Land Deed Official (PPAT) and subsequently registered with the National Land Office (BPN). The document is particularly important as it forms the basis for the official transfer deed (Akta Jual Beli) and provides protection for both buyers and sellers under Indonesian law.

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 sale, including brief property history and purpose of the transaction

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 land certificate

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

6. Payment Method: Specified method of payment, including bank details and currency

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

8. Representations and Warranties: Seller's warranties regarding property ownership, absence of disputes, and condition of the property

9. Seller's Obligations: Specific obligations of the seller including document preparation and property handover

10. Buyer's Obligations: Specific obligations of the buyer including payment and documentation requirements

11. Costs and Taxes: Allocation of transaction costs, transfer taxes, and other fees

12. Default and Termination: Consequences of default and conditions for agreement termination

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictions

14. Dispute Resolution: Process for resolving disputes, including choice of forum

15. Notices: Method and addresses for formal communications between parties

16. Execution: Signature requirements and execution formalities