The Lot Payment Agreement is a crucial document in Indonesian property transactions, used when a buyer agrees to purchase a lot or land parcel through installment payments. This agreement type is commonly used in both residential and commercial property developments across Indonesia, where staged payments are preferred or required. The document must comply with Indonesian civil law, property regulations, and consumer protection requirements, making it essential for property developers and buyers to have a properly structured agreement. The Lot Payment Agreement typically includes detailed payment schedules, property specifications, development timelines, and conditions for title transfer, while also addressing potential defaults and remedies. It's particularly important in new development projects where lots are sold before or during development phases.
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1. Parties: Identification of the seller/developer and buyer with complete legal details
2. Background: Context of the agreement, including brief description of the development project and lot being sold
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter: Detailed description of the lot being sold, including its specifications and boundaries
5. Purchase Price: Total purchase price and breakdown of costs
6. Payment Terms: Payment schedule, installment amounts, and payment methods
7. Default and Remedies: Consequences of payment default and available remedies for both parties
8. Title Transfer: Process and conditions for transferring title upon completion of payments
9. Representations and Warranties: Statements of fact and promises by both parties regarding the lot and their capacity to enter the agreement
10. Rights and Obligations: Detailed responsibilities of both parties during the payment period
11. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
12. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictions
13. Dispute Resolution: Process for resolving disputes between parties
14. Notices: Methods and addresses for official communications between parties
15. Termination: Conditions and process for agreement termination
1. Development Conditions: Include when the lot is part of an ongoing development project, specifying completion timelines and conditions
2. Mortgage Provisions: Include when the buyer is obtaining mortgage financing, specifying conditions and requirements
3. Property Management: Include when the development includes shared facilities or requires ongoing management
4. Construction Requirements: Include when there are specific building requirements or restrictions for the lot
5. Assignment Rights: Include when transfer of rights to third parties needs to be addressed
6. Insurance Requirements: Include when specific insurance coverage is required during the payment period
7. Utilities and Infrastructure: Include when specific provisions about utility connections and infrastructure development need to be addressed
1. Schedule A - Property Details: Detailed technical description of the lot, including exact measurements, boundaries, and certificates
2. Schedule B - Payment Schedule: Detailed breakdown of payment installments, due dates, and amounts
3. Schedule C - Site Plan: Plans showing the location of the lot within the development
4. Schedule D - Specifications: Technical specifications of any included infrastructure or development features
5. Schedule E - Required Documents: List of documents required for title transfer and registration
6. Appendix 1 - Land Certificate: Copy of the master land certificate or relevant property titles
7. Appendix 2 - Development Permits: Copies of relevant development and construction permits
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