Real Property Purchase Agreement Template for Indonesia

The Real Property Purchase Agreement is a crucial legal instrument used in Indonesian property transactions to formalize the transfer of real estate ownership. This document is essential when conducting property transactions in Indonesia, where specific legal requirements under the Basic Agrarian Law and Civil Code must be met. It serves as the primary agreement between parties, detailing all aspects of the property transfer, including purchase price, payment terms, and conditions for completion. The agreement must be executed before a Land Deed Official (PPAT) and subsequently registered with the local Land Office. It addresses unique aspects of Indonesian property law, such as different categories of land rights (Hak Milik, Hak Guna Bangunan, etc.) and restrictions on foreign ownership. The document is particularly important given Indonesia's complex property registration system and the need for clear documentation of ownership transfer.

1. Parties: Identification and details of the Seller and Purchaser, including their legal capacity to enter into the agreement

2. Background: Context of the transaction and brief description of the property being sold

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

5. Purchase Price: Agreed purchase price and payment structure

6. Payment Terms: Detailed payment schedule, method of payment, and consequences of default

7. Conditions Precedent: Conditions that must be satisfied before completion of the sale

8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, encumbrances, and legal status

9. Purchaser's Representations and Warranties: Purchaser's declarations regarding legal capacity and financial ability

10. Completion: Process and requirements for completing the transfer of property

11. Transfer of Title: Procedures for legal transfer of property ownership

12. Taxes and Costs: Allocation of transaction costs, taxes, and fees

13. Default and Termination: Consequences of breach and conditions for termination

14. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes

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

16. General Provisions: Standard legal provisions including amendments, severability, and entire agreement