Document background
The Down Payment Gift Letter is a crucial document in Indonesian property transactions where one party provides financial assistance to another for property purchase. It addresses the increasing trend of family members helping with property down payments, particularly in Indonesia's growing real estate market. The document serves multiple purposes: it satisfies bank requirements for mortgage applications, complies with Indonesian gift (hibah) regulations under the Civil Code, meets anti-money laundering requirements, and provides clear documentation for tax purposes. The letter is particularly important in Indonesia where gift transactions must be properly documented to comply with both banking regulations and civil law requirements. It typically includes detailed information about the donor and recipient, specific gift amount, property details, clear statements about the gift's non-repayable nature, and declarations about the legitimate source of funds.
