Document background
A Letter of Offer to Purchase Property is a crucial initial document in Indonesian property transactions, typically used before entering into a binding sale and purchase agreement. This document is essential when a prospective buyer wishes to formally communicate their interest in purchasing a property and outline the proposed terms of the purchase. It serves as a preliminary step in property transactions governed by Indonesian law, including the Basic Agrarian Law and related property regulations. The letter includes key information such as property details, purchase price, payment terms, and conditions, while considering specific requirements under Indonesian property law, such as land rights categories (Hak Milik, Hak Guna Bangunan, etc.) and any relevant foreign ownership restrictions. While not legally binding, this document forms the foundation for subsequent negotiations and the formal property transfer process.
