Residential Sales Agreement Template for Indonesia

The Residential Sales Agreement serves as the primary legal instrument for residential property transactions in Indonesia. This document is essential when transferring ownership of houses, apartments, or other residential properties, and must comply with Indonesian Civil Code (KUHPerdata) and the Basic Agrarian Law (UU No. 5/1960). The agreement is typically used in both developer-to-buyer and private seller-to-buyer transactions, containing crucial elements such as property specifications, payment terms, warranties, and completion requirements. It requires notarization under Indonesian law and must address specific local requirements, including foreign ownership restrictions if applicable. The document protects both parties' interests while ensuring the transaction meets all legal and regulatory requirements for property transfer in Indonesia.

1. Parties: Identification and details of the Seller and Buyer, 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 details, boundaries, and built-up area

5. Purchase Price: Agreed purchase price and payment terms, including deposit and installment schedule if applicable

6. Payment Method: Specified method of payment and bank account details

7. Conditions Precedent: Conditions that must be fulfilled before the sale can proceed

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

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

10. Completion: Process and requirements for completing the sale, including documentation and handover

11. Tax Obligations: Allocation of tax responsibilities between parties

12. Title Transfer: Process and requirements for legal transfer of title

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

14. Dispute Resolution: Process for resolving disputes between parties

15. Governing Law: Specification of Indonesian law as governing law

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

17. Execution: Signature requirements and execution process