Residential Real Estate Purchase Contract Template for Indonesia

The Residential Real Estate Purchase Contract is a vital legal document used in Indonesian property transactions to formalize the sale and purchase of residential properties. This document is essential when transferring ownership of houses, apartments, or other residential properties in Indonesia, incorporating requirements from the Indonesian Civil Code, Basic Agrarian Law, and related property regulations. It provides a comprehensive framework for the transaction, including property details, payment terms, conditions precedent, and obligations of both parties. The contract must be executed before a licensed Land Deed Official (PPAT) to be legally valid for property registration purposes. It's particularly important as it forms the basis for the subsequent property registration process and protects both buyers' and sellers' interests throughout the transaction. The document requires careful consideration of Indonesian property ownership rules, especially when involving foreign buyers or special categories of land rights.

1. Parties: Identification of the seller and buyer, including their complete legal names, addresses, and ID numbers (KTP for Indonesian citizens or passport for foreigners)

2. Background: Context of the transaction, including brief description of the property and the parties' intention to enter into a sale and purchase agreement

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terms

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

5. Purchase Price: Agreed purchase price, payment structure, and payment methods

6. Payment Terms: Detailed schedule of payments, including deposit, installments (if any), and final payment arrangements

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

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

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

10. Property Handover: Terms and conditions for the physical handover of the property

11. Taxes and Costs: Allocation of transaction costs, including transfer tax, notary fees, and other administrative costs

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

13. Dispute Resolution: Methods and procedures for resolving disputes

14. Governing Law: Confirmation of Indonesian law as governing law and relevant jurisdiction

15. Notices: Process and requirements for formal communications between parties

16. Execution: Signature blocks and formal closing of the agreement