The For Sale By Owner Sales Contract is a crucial legal document used in Indonesia when property owners choose to sell their property directly to buyers without real estate agent intermediaries. This approach has become increasingly popular in Indonesia's property market as it can reduce transaction costs while maintaining legal compliance. The document must strictly adhere to Indonesian property law requirements, including the Basic Agrarian Law (UU No. 5/1960), land registration regulations, and local property transaction rules. It serves as a comprehensive agreement that protects both parties' interests while ensuring the transaction meets all legal requirements for property transfer in Indonesia. The contract typically includes detailed property descriptions, payment terms, warranties, and specific provisions required by Indonesian law for property registration and transfer of title.
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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 sale, including brief property history and current ownership status
3. Definitions: Key terms used throughout the agreement, including property-specific terminology and legal terms
4. Property Description: Detailed description of the property including address, certificate number, land area, building area, and boundaries as per land certificate
5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments including deposit arrangements
6. Payment Method: Specified method of payment, including bank transfer details or other accepted payment methods
7. Transfer of Title: Process and requirements for legal transfer of property ownership
8. Seller's Representations and Warranties: Seller's guarantees regarding property ownership, condition, and legal status
9. Buyer's Representations and Warranties: Buyer's guarantees regarding financial capacity and compliance with purchase terms
10. Closing Requirements: Conditions that must be met before finalizing the sale
11. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties
12. Default and Remedies: Consequences and remedies in case either party fails to fulfill obligations
13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictions
14. Signatures: Formal execution section including spaces for parties' signatures and witnesses
1. Property Inspection: Details of property inspection process and findings, used when buyer has conducted pre-purchase inspection
2. Financing Contingency: Conditions related to buyer's financing arrangements, included when purchase depends on mortgage approval
3. Tenant Provisions: Terms regarding existing tenants and lease agreements, included if property is currently tenanted
4. Furniture and Fixtures: List of included/excluded items, used when sale includes or specifically excludes certain items
5. Construction Warranty: Details of remaining construction warranties, included for relatively new properties
6. Environmental Conditions: Disclosures about environmental issues, included if property has known environmental concerns
7. Power of Attorney: Authorization details if either party is represented by an agent, included when relevant
1. Property Title Documents: Copies of land certificate and other ownership documents
2. Property Tax Records: Recent property tax payments and outstanding amounts
3. Property Photographs: Current photographs documenting property condition
4. Inventory List: Detailed list of included furniture and fixtures, if applicable
5. Payment Schedule: Detailed schedule of payment installments if not single payment
6. Property Plans: Official property/land plans and building permits
7. Utility Documents: Current utility contracts and recent bills
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Construction
Banking and Finance
Legal Services
Property Management
Urban Development
Residential Housing
Commercial Property
Land Development
Relevant Teams
Legal
Real Estate
Property Management
Corporate Services
Facilities Management
Risk Management
Documentation
Compliance
Finance
Asset Management
Relevant Roles
Property Owner
Real Estate Lawyer
Legal Counsel
Property Manager
Notary Public
Land Registration Officer
Tax Consultant
Bank Manager
Property Developer
Corporate Real Estate Manager
Facilities Manager
Legal Documentation Specialist
Property Investment Manager
Asset Manager
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