Residential Sale Contract Template for Indonesia

The Residential Sale Contract is a fundamental legal document used in Indonesian property transactions to formalize the sale and purchase of residential properties. It is essential for any residential property transfer in Indonesia and must comply with local property laws, including the Basic Agrarian Law and relevant property regulations. This document is typically prepared when parties have agreed on basic terms and are ready to proceed with the formal property transfer process. The contract includes crucial elements such as property details, price, payment terms, warranties, and completion requirements, all structured to meet Indonesian legal requirements. It must be executed before a Land Deed Official (PPAT) and properly registered with the National Land Office. The document is particularly important as it forms the basis for the property transfer deed (Akta Jual Beli) and subsequent title registration.

1. Parties: Identification of the seller and buyer with complete legal names and details

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, boundaries, and registered area

5. Purchase Price: Agreed purchase price and payment terms including deposit arrangements

6. Payment Method: Details of how and when payments will be made

7. Conditions Precedent: Conditions that must be satisfied before completion can occur

8. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and other standard seller representations

9. Buyer's Warranties: Warranties regarding ability to purchase and fund the transaction

10. Completion: Process and requirements for completing the sale

11. Transfer of Title: Process and obligations regarding the transfer of legal title

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

13. Default and Termination: Consequences of default and circumstances allowing termination

14. Notices: How formal notices between parties should be given

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

16. Execution: Signature blocks and execution requirements