The Land Agreement serves as a crucial legal instrument in Indonesian property transactions, operating within the framework of the Basic Agrarian Law and related regulations. This document is essential when transferring, leasing, or establishing land rights between parties in Indonesia, whether for commercial, industrial, or residential purposes. It must comply with strict regulatory requirements, including proper certification by Land Deed Officials (PPAT) and registration with the National Land Office (BPN). The agreement becomes necessary in various scenarios such as property development, industrial establishment, agricultural ventures, or commercial lease arrangements. It includes comprehensive details about the land, rights being transferred, payment terms, and obligations of all parties, while ensuring compliance with both national and regional regulations governing land use and ownership in Indonesia.
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1. Parties: Identification of all parties involved, including full legal names, addresses, and identification numbers as required by Indonesian law
2. Background: Context of the agreement, including brief history of the land ownership and purpose of the transaction
3. Definitions: Key terms used in the agreement, including specific Indonesian legal terms related to land rights
4. Object of Agreement: Detailed description of the land, including certificate number, location, boundaries, and size
5. Transfer of Rights: Specific rights being transferred and their nature under Indonesian law
6. Purchase Price and Payment Terms: Amount, payment schedule, and method of payment
7. Representations and Warranties: Statements regarding legal ownership, absence of disputes, and compliance with zoning laws
8. Handover Process: Terms and process for physical handover of the land
9. Registration and Administrative Requirements: Process for legal registration of the transfer with relevant authorities
10. Tax Obligations: Allocation of tax responsibilities between parties
11. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
12. Force Majeure: Provisions for unforeseen circumstances affecting the agreement
13. Notices: Communication methods and addresses for official notices
14. Governing Law: Confirmation of Indonesian law as governing law
15. Execution: Signature requirements and execution formalities
1. Language Provisions: Required when agreement is bilingual, specifying which version prevails
2. Environmental Conditions: Required when the land has specific environmental considerations or requirements
3. Development Obligations: Used when the agreement includes requirements for land development
4. Traditional Rights (Adat): Required when the land involves customary law considerations
5. Third Party Rights: Needed when there are existing tenants or other rights holders
6. Mortgage Provisions: Required when the transaction involves mortgage or financing
7. Special Zoning Requirements: Needed when the land is subject to specific zoning or use restrictions
1. Land Title Certificate: Copy of the official land certificate and registration details
2. Land Map and Site Plan: Official drawings showing boundaries and coordinates
3. Payment Schedule: Detailed breakdown of payment terms and installments if applicable
4. Due Diligence Results: Summary of legal and technical due diligence findings
5. Property Tax History: Records of property tax payments and outstanding obligations
6. Permits and Licenses: Copies of relevant permits affecting the land use
7. Power of Attorney: If applicable, authorization documents for representatives
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