Real Estate Sales Contract Template for Indonesia

A Real Estate Sales Contract is a legally binding agreement that governs the transfer of property ownership in Indonesia. This document ensures your property transaction complies with Indonesian law and protects both buyer and seller interests throughout the sale process.

When do you need this document?

You need a Real Estate Sales Contract whenever you're buying or selling real estate in Indonesia, whether residential, commercial, or industrial property. This includes transactions involving apartments (rumah susun), landed houses, commercial buildings, or undeveloped land. The contract is particularly crucial for foreign buyers who must navigate Indonesia's complex property ownership regulations. You'll also need this document when purchasing property through developers, engaging real estate agents, or when bank financing is involved. Any property transaction exceeding certain value thresholds or involving corporate entities requires this formal contract structure.

Key legal considerations

Your contract must clearly identify all parties and their legal capacity to enter the agreement, especially important for foreign buyers who face ownership restrictions. The property description must be comprehensive, including certificate numbers, exact boundaries, and building specifications to prevent future disputes. Payment terms should specify the total purchase price, deposit amounts, installment schedules, and consequences of default. Include provisions for title verification, ensuring the seller has clear ownership and the property is free from encumbrances. The contract should address inspection periods, condition warranties, and allocation of transaction costs including taxes, notary fees, and registration charges. Foreign ownership clauses must comply with Government Regulation No. 103 of 2015, particularly for residential properties.

Legal requirements in Indonesia

Under Indonesian law, your Real Estate Sales Contract must comply with the Indonesian Civil Code (KUHPerdata) for contract validity, including mutual consent, legal capacity, specific subject matter, and lawful consideration. The Basic Agrarian Law No. 5 of 1960 governs land rights and ownership structures, determining which types of title certificates are transferable. You must execute the final transfer through a licensed PPAT (Pejabat Pembuat Akta Tanah) who will prepare the deed of transfer (Akta Jual Beli). Government Regulation No. 24 of 1997 requires proper registration with the National Land Office (BPN) to complete ownership transfer. For apartment units, Law No. 20 of 2011 provides additional requirements for strata title transfers. Foreign buyers must ensure compliance with ownership restrictions, including the requirement to hold properties through Indonesian companies or under leasehold arrangements. All contracts must be in Indonesian language for official recognition, and certain transaction values require additional tax clearances and approvals.