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Deed Of Purchase And Sale for Indonesia

Deed Of Purchase And Sale Template for Indonesia

A Deed of Purchase and Sale under Indonesian law is a formal notarial deed that documents and legalizes the transfer of property ownership from a seller to a buyer. This document, governed by the Indonesian Civil Code and Basic Agrarian Law, must be executed before an authorized Indonesian notary public (PPAT - Pejabat Pembuat Akta Tanah). It includes detailed information about the property, parties involved, purchase price, and terms of transfer, while ensuring compliance with local property registration requirements and tax regulations. The deed serves as the primary legal instrument for property transfers in Indonesia and is required for the subsequent registration of the property under the buyer's name at the National Land Office.

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Deed Of Purchase And Sale

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What is a Deed Of Purchase And Sale?

The Deed of Purchase and Sale (Akta Jual Beli) is a crucial legal document in Indonesian property transactions, required whenever real property ownership is transferred between parties. This document type is specifically mandated by Indonesian law and must be prepared and executed in accordance with the Civil Code (KUHPerdata) and Basic Agrarian Law (UUPA). It is used for both residential and commercial property transfers, containing essential details such as property specifications, ownership history, purchase price, and payment terms. The deed must be executed before a land deed official (PPAT) who has jurisdiction over the area where the property is located. This document serves multiple purposes: it validates the transaction, enables property registration transfer at the Land Office, and provides legal protection for both parties. It's particularly important as it's the only legally recognized document for transferring property rights in Indonesia.

What sections should be included in a Deed Of Purchase And Sale?

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and identification numbers as required by Indonesian law

2. Background: Context of the transaction including brief history of the property ownership and intention to sell/purchase

3. Definitions: Definitions of key terms used throughout the deed

4. Object of Sale and Purchase: Detailed description of the property including certificate number, location, boundaries, and size

5. Price and Payment Terms: Agreed purchase price, payment method, and payment schedule

6. Transfer of Rights: Legal provisions regarding the transfer of ownership rights

7. Seller's Representations and Warranties: Declarations regarding property ownership, absence of disputes, and authority to sell

8. Buyer's Representations and Warranties: Declarations regarding legal capacity and authority to purchase

9. Handover of Property: Terms and conditions for physical handover of the property

10. Taxes and Costs: Allocation of transaction costs, taxes, and fees between parties

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

12. Execution: Formal execution clause and notarial declaration

What sections are optional to include in a Deed Of Purchase And Sale?

1. Existing Tenancy: Details of any existing lease agreements and handling of tenants, used when the property is currently leased

2. Mortgage Release: Provisions for clearing existing mortgages, used when the property has outstanding loans

3. Conditions Precedent: Specific conditions that must be met before completion, used for complex transactions

4. Environmental Conditions: Statements regarding environmental status, used for industrial or potentially contaminated properties

5. Development Restrictions: Details of any building or development restrictions, used for undeveloped land or properties in special zones

6. Third Party Rights: Handling of any third party rights or claims, used when relevant

7. Force Majeure: Provisions for unforeseen circumstances, used in areas prone to natural disasters

What schedules should be included in a Deed Of Purchase And Sale?

1. Property Details: Comprehensive technical description of the property including exact measurements and boundaries

2. Land Certificate: Copy of the land certificate and ownership history

3. Payment Schedule: Detailed breakdown of payment installments if applicable

4. Property Tax History: Record of property tax payments and outstanding obligations

5. Property Photos: Recent photographs of the property and its boundaries

6. Building Permits: Copies of relevant building permits and certificates

7. Site Plan: Official site plan showing property location and surroundings

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions



































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Real Estate

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