The Real Estate Sales Contract is a fundamental legal document used in Indonesian property transactions to formalize the transfer of real estate ownership. This document is essential for both residential and commercial property sales in Indonesia, requiring compliance with the Indonesian Civil Code (KUHPerdata) and the Basic Agrarian Law (UUPA). It must be executed before a licensed land deed official (PPAT) and registered with the National Land Office (BPN). The contract includes crucial details about the property, parties involved, purchase price, payment terms, and conditions for title transfer, while incorporating necessary provisions for foreign ownership restrictions if applicable. This document type is particularly important as it forms the basis for the formal deed of transfer (Akta Jual Beli) and subsequent property registration in Indonesia.
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1. Parties: Identification and details of the Seller and Buyer, including their legal capacity to enter into the agreement
2. Background: Context of the transaction and brief description of the property being sold
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Details: Comprehensive description of the property, including certificate number, land area, building specifications, and boundaries
5. Purchase Price: Agreed purchase price and payment structure, including deposit arrangements
6. Payment Terms: Detailed payment schedule, method of payment, and consequences of payment default
7. Conditions Precedent: Conditions that must be fulfilled before the sale can proceed, including due diligence requirements
8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, encumbrances, and legal status
9. Buyer's Representations and Warranties: Buyer's declarations regarding legal capacity and financial ability to complete the purchase
10. Transfer of Title: Process and requirements for legal transfer of property ownership
11. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties
12. Default and Termination: Consequences of breach and conditions for contract termination
13. Dispute Resolution: Procedures for handling disputes, including choice of forum and applicable law
14. Notices: Method and addresses for formal communications between parties
15. Governing Law: Specification of Indonesian law as governing law
16. Execution: Signature blocks and execution requirements
1. Foreign Ownership Provisions: Required when buyer is a foreign national, detailing compliance with Indonesian foreign ownership restrictions
2. Broker Provisions: Required when real estate agents or brokers are involved in the transaction
3. Mortgage Contingency: Include when purchase is contingent on buyer obtaining financing
4. Property Management Transition: Required for properties with existing management arrangements or tenants
5. Construction Completion: Required for off-plan purchases or properties under construction
6. Strata Title Provisions: Required for apartment or condominium purchases
7. Environmental Provisions: Required when environmental issues or assessments are relevant to the property
8. Force Majeure: Optional clause dealing with unforeseen circumstances that may affect completion
1. Property Details Schedule: Detailed technical description of the property, including exact measurements and boundaries
2. Payment Schedule: Detailed breakdown of payment installments and due dates
3. Title Documents: Copies of land certificates and other ownership documents
4. Property Tax History: Record of property tax payments and outstanding obligations
5. Property Photographs: Visual documentation of the property condition at time of sale
6. Due Diligence Results: Summary of property checks and verifications
7. Building Permits: Copies of relevant building permits and certificates
8. Inventory List: List of fixtures, fittings, and other items included in the sale
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