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The Real Estate Term Sheet is a crucial preliminary document used in Indonesian property transactions to establish the fundamental understanding between parties before proceeding with detailed negotiations and definitive agreements. It is particularly important in the Indonesian context due to the complex nature of property rights under the Basic Agrarian Law and specific requirements for foreign investment in real estate. This document typically precedes more detailed agreements and serves to outline key commercial terms, conditions, and timeline while ensuring compliance with local regulations. It is commonly used in various types of property transactions, from commercial and residential developments to industrial properties and mixed-use projects. The term sheet helps parties align their expectations early in the transaction process while addressing unique aspects of Indonesian real estate law, such as land title categories and ownership structures.

1. Parties: Identification of all parties involved in the potential transaction, including their complete legal names, addresses, and registration numbers

2. Background: Brief context of the proposed transaction and property in question

3. Definitions: Key terms used throughout the term sheet

4. Property Details: Description of the real estate asset, including address, land certificate details, and current ownership status

5. Transaction Structure: Proposed structure of the deal, including type of rights to be transferred

6. Purchase Price: Proposed purchase price, payment terms, and any price adjustment mechanisms

7. Payment Terms: Details of payment schedule, deposit requirements, and payment methods

8. Timeline: Key dates including due diligence period, definitive agreement signing, and closing

9. Key Conditions: Essential conditions precedent to closing the transaction

10. Due Diligence: Scope and process for due diligence investigations

11. Exclusivity: Terms of exclusive negotiation period, if applicable

12. Confidentiality: Basic confidentiality obligations regarding the proposed transaction

13. Costs: Allocation of transaction costs and expenses

14. Non-Binding Nature: Clear statement of which provisions are binding and non-binding

15. Governing Law: Specification of Indonesian law as governing law