Simple Real Estate Sales Agreement Template for Indonesia

The Simple Real Estate Sales Agreement serves as a fundamental legal instrument for property transactions in Indonesia, designed to comply with local regulations while maintaining international best practices. This document is essential for any real estate sale transaction, whether residential or commercial, and must be executed in accordance with Indonesian law, particularly the Basic Agrarian Law and Civil Code requirements. The agreement typically precedes the execution of the final deed of sale (Akta Jual Beli) before a land deed official (PPAT). It includes crucial elements such as property details, price, payment terms, warranties, and completion requirements, while accommodating specific Indonesian legal requirements such as foreign ownership restrictions and local property registration procedures. The document is structured to protect both parties' interests while ensuring smooth transaction completion within the Indonesian legal framework.

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and identification numbers as required by Indonesian law

2. Background: Context of the transaction, including brief description of the property and parties' intention to enter into a sale and purchase agreement

3. Definitions: Key terms used throughout the agreement, including Property, Purchase Price, Completion Date, and other relevant terms

4. Subject Matter of Sale: Detailed description of the property being sold, including its certificate number, location, boundaries, and size

5. Purchase Price: The agreed purchase price, payment terms, and method of payment

6. Payment Terms: Schedule of payments, including deposit, installments (if any), and final payment details

7. Conditions Precedent: Conditions that must be fulfilled before the sale can proceed, including property inspection and title verification

8. Completion: Process and requirements for completing the sale, including signing of deed of sale (AJB) before PPAT

9. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and other legal assurances

10. Buyer's Warranties: Warranties regarding legal capacity and financial ability to complete the purchase

11. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties

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

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction

14. Execution: Signature blocks and execution requirements