Sale Agreement For House Template for Indonesia

The Sale Agreement For House is a critical legal document used in Indonesian property transactions to formalize the transfer of residential property ownership. It is essential when any residential property is being sold in Indonesia, whether it involves local or foreign buyers (subject to applicable ownership restrictions). The agreement must comply with various Indonesian regulations, including the Civil Code (KUHPerdata), Basic Agrarian Law, and property registration requirements. This document typically includes comprehensive details about the property, parties involved, purchase price, payment terms, warranties, and transfer procedures. It serves as the foundation for the property transfer process and is required for registration with the Indonesian Land Office (BPN). The agreement should be executed before a licensed Indonesian notary public to ensure legal validity and enforceability.

1. Parties: Identifies and provides full details of the Seller and Buyer, including their legal names, ID numbers, addresses, and civil status

2. Background: Outlines the context of the sale, confirming the Seller's ownership and both parties' intention to enter into the sale transaction

3. Definitions: Defines key terms used throughout the agreement to ensure clear interpretation

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

5. Purchase Price: States the agreed purchase price and currency

6. Payment Terms: Details the payment structure, including deposit, installments if any, and final payment arrangements

7. Transfer of Title: Specifies the process and timing of legal ownership transfer, including registration requirements

8. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and condition of the property

9. Buyer's Warranties: Warranties regarding financial capacity and compliance with property ownership regulations

10. Taxes and Costs: Allocation of transaction costs, including transfer tax, notary fees, and registration fees

11. Handover: Terms and conditions for physical possession transfer of the property

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

13. Governing Law: Confirms Indonesian law as governing law and jurisdiction

14. Dispute Resolution: Process for resolving disputes, including choice of forum