The Real Estate Purchase Agreement Contract is a fundamental legal document used in Indonesian property transactions to formalize the transfer of real estate ownership between parties. It is essential for both residential and commercial property transactions in Indonesia, requiring careful consideration of local property laws, including the Basic Agrarian Law and related regulations. The agreement must be executed before a licensed land deed official (PPAT) and requires registration with the National Land Office. This document typically includes comprehensive details about the property, parties involved, payment terms, warranties, and specific conditions required under Indonesian law. It serves as the primary instrument for protecting both buyer's and seller's interests while ensuring compliance with local property transfer regulations, tax requirements, and ownership restrictions, particularly those affecting foreign investors.
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1. Parties: Identification of the seller and purchaser with complete legal details as required by Indonesian law
2. Background: Context of the transaction and brief property overview
3. Definitions: Key terms used throughout the agreement, including specific Indonesian legal terminology
4. Property Details: Comprehensive description of the property, including certificate numbers, land rights type, and boundaries
5. Purchase Price: Agreement on price, payment terms, and payment schedule
6. Payment Method: Specified payment procedures and account details
7. Conditions Precedent: Requirements to be met before completion, including necessary governmental approvals
8. Seller's Representations and Warranties: Declarations regarding property ownership, absence of disputes, and legal status
9. Buyer's Representations and Warranties: Declarations regarding legal capacity and financial ability to purchase
10. Completion Requirements: Steps for property handover and registration transfer
11. Tax Obligations: Allocation of tax responsibilities between parties
12. Title Transfer: Procedures for legal transfer of title at the Land Office
13. Risk and Insurance: Transfer of risk and insurance requirements
14. Default and Termination: Consequences of breach and termination procedures
15. Dispute Resolution: Methods and jurisdiction for resolving disputes
16. Governing Law: Specification of Indonesian law as governing law
17. Notices: Communication procedures between parties
18. General Provisions: Standard boilerplate clauses adapted to Indonesian law
1. Mortgage and Financing: Include when buyer requires financing or property has existing mortgage
2. Foreign Ownership Provisions: Required when buyer is a foreign national, addressing specific restrictions and requirements
3. Property Management Transition: Include for properties with existing management or tenant arrangements
4. Construction Completion: Required for off-plan purchases or properties under construction
5. Environmental Conditions: Include when property has specific environmental considerations or requirements
6. Strata Title Provisions: Include for apartments or properties under strata title
7. Cultural Heritage Provisions: Required if property has cultural or historical significance
8. Special Land Use Requirements: Include when property has specific zoning or land use restrictions
1. Property Description Schedule: Detailed technical description, boundaries, and certificate details
2. Payment Schedule: Detailed breakdown of payment installments and timing
3. Due Diligence Results: Summary of property inspections and verifications
4. Land Office Forms: Required official forms for property transfer
5. Title Documents: Copies of current title certificates and registration documents
6. Property Tax Records: History of property tax payments and current status
7. Building Permits: Copies of relevant building permits and certificates
8. Site Plan: Official property site plan and building layouts
9. Photographs: Current photographs of the property and structures
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