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Land Option Contract

Land Option Contract Template for Indonesia

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Key Requirements PROMPT example:

Land Option Contract

"I need a Land Option Contract under Indonesian law for a foreign investment company looking to develop a commercial property in Jakarta, with a 6-month option period starting March 2025, including provisions for obtaining necessary foreign investment permits and development approvals."

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Document background
The Land Option Contract serves as a crucial instrument in Indonesian real estate transactions, providing a structured framework for securing future land acquisition rights. This document is particularly valuable when parties need time to conduct due diligence, arrange financing, or obtain necessary permits before completing a land purchase. It must comply with Indonesian Basic Agrarian Law (UUPA), land registration requirements, and spatial planning regulations. The contract is commonly used in property development projects, commercial real estate transactions, and industrial land acquisitions. For foreign investors, special consideration must be given to investment restrictions and ownership limitations under Indonesian law. The document typically includes comprehensive details about the property, option terms, exercise conditions, and completion requirements, while accounting for local regulatory compliance and risk allocation between parties.
Suggested Sections

1. Parties: Identification of the Option Grantor (landowner) and Option Holder, including complete legal names, addresses, and identification numbers

2. Background: Context of the agreement, brief description of the property, and parties' intentions

3. Definitions: Key terms used throughout the agreement, including technical and legal terminology specific to Indonesian land law

4. Property Details: Comprehensive description of the land, including certificate number, location, boundaries, and current land use status

5. Option Grant: Express grant of the option and its basic terms

6. Option Period: Duration of the option, including start and end dates

7. Option Price: Amount payable for the option right itself

8. Purchase Price: Agreed price for the property if the option is exercised

9. Exercise of Option: Process and requirements for exercising the option

10. Payment Terms: Structure and timing of payments for both option and purchase price

11. Representations and Warranties: Statements of fact by both parties regarding their capacity and the property's status

12. Covenants: Ongoing obligations of parties during the option period

13. Completion Requirements: Steps required to complete the transfer if option is exercised

14. Termination: Circumstances under which the agreement may be terminated

15. Governing Law: Confirmation of Indonesian law application and jurisdiction

Optional Sections

1. Due Diligence: Terms for conducting property investigations, used when buyer requires specific inspection rights

2. Foreign Investment Provisions: Additional terms required when the Option Holder is a foreign entity

3. Spatial Planning Compliance: Special provisions when property development plans require specific zoning considerations

4. Multiple Properties: Additional provisions when option covers multiple land parcels

5. Broker Involvement: Terms regarding broker commissions when real estate agents are involved

6. Environmental Conditions: Special provisions regarding environmental assessments and liabilities

7. Development Conditions: Used when option is contingent on obtaining specific development approvals

8. Right of First Refusal: Additional terms if option includes ongoing right of first refusal after initial period

Suggested Schedules

1. Property Description Schedule: Detailed technical description of the property including boundaries, coordinates, and certificate details

2. Land Title Documents: Copies of relevant land certificates and ownership documentation

3. Payment Schedule: Detailed breakdown of payment terms and installments if applicable

4. Form of Exercise Notice: Template for the formal notice to exercise the option

5. Due Diligence Requirements: List of required documents and inspections for due diligence

6. Required Permits: List of permits and approvals required for transfer or development

7. Site Plan: Maps and plans showing the property boundaries and features

8. Power of Attorney: Standard form of power of attorney for land registration purposes

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions







































Clauses


































Relevant Industries

Real Estate

Property Development

Construction

Agriculture

Industrial Development

Commercial Property

Hospitality

Retail

Infrastructure

Mining

Energy

Urban Development

Relevant Teams

Legal

Real Estate

Property Development

Investment

Finance

Business Development

Compliance

Operations

Project Management

Asset Management

Due Diligence

Risk Management

Relevant Roles

Real Estate Director

Property Development Manager

Legal Counsel

Land Acquisition Manager

Investment Manager

Project Director

Chief Financial Officer

Business Development Manager

Real Estate Investment Analyst

Compliance Officer

Property Manager

Site Development Manager

Corporate Lawyer

Real Estate Broker

Asset Manager

Industries








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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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