Residential Sales Contract Template for Indonesia

The Residential Sales Contract is a crucial legal document used in Indonesian property transactions to formalize the sale and purchase of residential properties. It is designed to comply with Indonesian property law, including the Basic Agrarian Law No. 5 of 1960 and related regulations. This document is essential when transferring residential property ownership in Indonesia, whether for houses, apartments, or other residential units. It includes mandatory provisions required by Indonesian law, such as proper party identification, property details, price and payment terms, and the involvement of a PPAT (Land Deed Official). The contract addresses specific Indonesian requirements for property transfer, tax obligations, and ownership restrictions, including special provisions for foreign buyers when applicable. It serves as the primary agreement between sellers and buyers, protecting both parties' interests while ensuring the transaction meets all local legal requirements.

1. Parties: Identification of the seller and buyer with complete details as required under Indonesian law, including NIK (National Identity Number)

2. Background: Context of the sale and brief description of the property being transferred

3. Definitions: Definitions of key terms used throughout the agreement

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

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

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

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

8. Transfer of Title: Process and obligations regarding the transfer of property ownership

9. Seller's Warranties: Warranties regarding property ownership, absence of disputes, and condition of the property

10. Buyer's Warranties: Warranties regarding financial capacity and eligibility to purchase property

11. Taxes and Costs: Allocation of responsibility for transfer taxes, notary fees, and other transaction costs

12. Handover: Terms and process for physical handover of the property

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

14. Governing Law: Confirmation of Indonesian law as governing law

15. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue

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

17. Execution: Signing requirements and execution formalities