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Home Purchase Agreement for Indonesia

Home Purchase Agreement Template for Indonesia

A Home Purchase Agreement under Indonesian law is a legally binding contract that facilitates the transfer of residential property ownership from seller to buyer. This document, which must comply with Indonesian Civil Code and relevant property laws, outlines the terms and conditions of the property sale, including purchase price, payment terms, property details, and obligations of both parties. The agreement must be executed before a licensed Indonesian notary public and requires registration with the local land office (Badan Pertanahan Nasional) for the transfer of title to be legally effective.

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What is a Home Purchase Agreement?

The Home Purchase Agreement is a crucial legal document used in Indonesian property transactions to formalize the sale and purchase of residential properties. This agreement is essential for both private and commercial property transactions in Indonesia, requiring strict adherence to local property laws, including the Basic Agrarian Law (UU No. 5/1960) and relevant property regulations. The document serves as the foundation for transferring property ownership rights, outlining all crucial aspects of the transaction including property details, price, payment terms, and parties' obligations. It must be executed in the presence of an Indonesian notary public and subsequently registered with the National Land Agency. The agreement is particularly important as it provides legal protection for both buyers and sellers while ensuring compliance with Indonesian property ownership regulations, including specific provisions for foreign ownership if applicable.

What sections should be included in a Home Purchase Agreement?

1. Parties: Identification of the seller and buyer with complete legal names and details as required under Indonesian law

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 area, and boundaries

5. Purchase Price: The agreed purchase price and payment terms including deposit and installment schedule if applicable

6. Payment Method: Specified method of payment and account details

7. Transfer of Title: Process and obligations regarding the transfer of property title

8. Representations and Warranties: Seller's warranties about property ownership, absence of disputes, and condition of the property

9. Seller's Obligations: Specific obligations of the seller including document preparation and property handover

10. Buyer's Obligations: Specific obligations of the buyer including payment and registration requirements

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

12. Property Handover: Terms and process for physical handover of the property

13. Default and Termination: Consequences of default by either party and termination provisions

14. Dispute Resolution: Process for resolving disputes including jurisdiction and venue

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

16. Execution: Signature blocks and notarization requirements

What sections are optional to include in a Home Purchase Agreement?

1. Mortgage Arrangements: Include when buyer is obtaining mortgage financing, detailing lender requirements and conditions

2. Property Management: Include for properties in managed complexes or developments, describing ongoing management obligations

3. Construction Completion: Include for properties under construction or requiring renovation before completion

4. Foreign Ownership Provisions: Include when buyer is a foreign national, detailing specific requirements and restrictions

5. Tenant Provisions: Include when property is currently tenanted, describing handling of existing tenancy

6. Special Conditions: Include when there are unique circumstances affecting the sale

7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

8. Insurance Requirements: Include when specific insurance arrangements are required before completion

What schedules should be included in a Home Purchase Agreement?

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 if applicable

3. Property Certificate: Copy of land certificate and building ownership documents

4. Property Tax Records: Historical property tax payment records

5. Property Photographs: Recent photographs of the property and its condition

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

7. Inventory List: List of fixtures and fittings included in the sale

8. Due Diligence Results: Summary of property checks and verifications

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

Purchase Agreement

Cost

Free to use
Relevant legal definitions







































Clauses






























Relevant Industries

Real Estate

Legal Services

Banking & Finance

Property Development

Construction

Insurance

Property Management

Public Administration

Notary Services

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Risk Management

Finance

Operations

Sales

Administrative Support

Customer Relations

Relevant Roles

Real Estate Agent

Property Lawyer

Notary Public

Property Developer

Legal Counsel

Bank Manager

Mortgage Officer

Property Manager

Compliance Officer

Real Estate Broker

Title Officer

Property Appraiser

Contract Administrator

Legal Administrator

Property Consultant

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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