Sales Agreement Contract For (Real Estate) Template for Indonesia

The Sales Agreement Contract For (Real Estate) is a vital legal instrument used in Indonesian property transactions to document and formalize the transfer of real estate ownership. This document is essential when any party wishes to purchase or sell property in Indonesia, whether for residential or commercial purposes. It must comply with Indonesian property laws, including the Basic Agrarian Law, land registration regulations, and regional spatial planning requirements. The agreement includes crucial details such as property specifications, payment terms, warranties, and closing requirements. It requires execution before a licensed land deed official (PPAT) and subsequent registration with the National Land Office (BPN). The document addresses specific Indonesian legal requirements, including restrictions on foreign ownership and local property registration procedures. It serves as the primary reference for the rights and obligations of both parties throughout the property transfer process.

1. Parties: Identification of the Seller and Buyer with complete legal names, addresses, and ID numbers as required under Indonesian law

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

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

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

5. Purchase Price: Agreed purchase price, payment schedule, and method of payment

6. Payment Terms: Detailed payment structure including deposits, installments, and final payment requirements

7. Title and Ownership: Confirmation of seller's right to sell and details of title transfer process

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

9. Seller's Warranties: Warranties regarding property ownership, absence of disputes, and compliance with regulations

10. Buyer's Warranties: Warranties regarding capacity to purchase and compliance with Indonesian property ownership laws

11. Closing Requirements: Documents and actions required to complete the transaction

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

13. Risk and Insurance: Transfer of risk and insurance requirements

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

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

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

17. Notices: How formal communications between parties should be made

18. Execution: Signature blocks and execution requirements