Residential Purchase Contract Template for Indonesia

The Residential Purchase Contract serves as the primary legal instrument for residential property transactions in Indonesia. It is essential for documenting the terms and conditions of property sales between buyers and sellers, whether they are individuals or corporate entities. This document must comply with Indonesian property law, including the Basic Agrarian Law and relevant property regulations. The contract typically includes comprehensive details about the property, payment terms, warranties, and closing conditions. It requires execution before a land deed official (PPAT) and subsequent registration with the National Land Office. The document is particularly crucial as Indonesian property law has unique characteristics, including restrictions on foreign ownership and specific land title categories. This contract type is mandatory for all residential property transactions in Indonesia and forms the basis for legal property transfer and registration.

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 transaction, including brief property description and parties' intention to enter into the sale and purchase agreement

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terms specific to Indonesian property law

4. Property Details: Comprehensive description of the property including certificate number, land area, building area, boundaries, and registered address

5. Purchase Price: Agreed purchase price, payment structure, and payment methods in accordance with Indonesian banking regulations

6. Payment Terms: Detailed payment schedule, deposit requirements, and conditions for installment payments if applicable

7. Conditions Precedent: Conditions that must be fulfilled before the transaction can proceed, including legal and regulatory requirements

8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, absence of disputes, and compliance with regulations

9. Buyer's Representations and Warranties: Buyer's declarations regarding legal capacity and financial ability to complete the purchase

10. Closing Process: Steps for completing the transaction, including document signing, payment verification, and property handover

11. Tax Obligations: Allocation of tax responsibilities including Land and Building Transfer Duty (BPHTB) and Income Tax

12. Default and Termination: Consequences of breach and conditions for contract termination

13. Governing Law: Confirmation of Indonesian law application and jurisdiction

14. Dispute Resolution: Process for resolving disputes, including mediation and legal proceedings

15. Notices: Communication methods and addresses for official notices between parties

16. Signing: Execution clause and signature blocks compliant with Indonesian legal requirements