The Land Contract Agreement is a crucial legal instrument in Indonesian property transactions, used to formalize the transfer of land rights between parties. It operates within the framework of Indonesian land law, particularly the Basic Agrarian Law No. 5 of 1960 and subsequent regulations. This document is essential when purchasing or selling land in Indonesia, whether for personal, commercial, or industrial purposes. It must address specific local requirements including notarial execution, land office registration, and compliance with both civil and customary law where applicable. The agreement is particularly important given Indonesia's unique land rights system, which recognizes various types of land titles and imposes specific restrictions on foreign ownership. It includes comprehensive details about the property, parties involved, payment terms, and transfer conditions, while ensuring compliance with local zoning regulations and land use requirements.
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1. Parties: Identification of the seller and buyer, including complete legal names, addresses, and identification numbers as required by Indonesian law
2. Background: Context of the transaction, including brief history of the land ownership and purpose of the transfer
3. Definitions: Definitions of key terms used throughout the agreement, including Indonesian legal terms
4. Property Details: Comprehensive description of the land including certificate number, location, boundaries, and size as per official documents
5. Purchase Price: Agreed purchase price, payment terms, method of payment, and installment schedule if applicable
6. Terms of Transfer: Process and conditions for transferring the land rights, including timing and required governmental approvals
7. Representations and Warranties: Seller's declarations regarding ownership, encumbrances, and property condition
8. Rights and Obligations: Detailed responsibilities of both parties before, during, and after the transfer
9. Conditions Precedent: Prerequisites that must be fulfilled before the transfer can take place
10. Completion Requirements: Steps required to complete the transaction, including notarial deed execution
11. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties
12. Default and Remedies: Consequences of breach and available remedies
13. Governing Law: Confirmation of Indonesian law application and jurisdiction
14. Dispute Resolution: Process for resolving disputes, including choice of forum
1. Development Rights: Include when the land is intended for development, specifying permitted development activities and restrictions
2. Third Party Rights: Include when there are existing tenants or other third-party interests in the land
3. Environmental Conditions: Include when there are specific environmental considerations or requirements
4. Customary Rights: Include when the land is subject to adat (customary) law considerations
5. Mortgage Provisions: Include when the purchase involves mortgage financing
6. Special Permits: Include when the land use requires specific permits or licenses
7. Foreign Ownership Provisions: Include when one party is a foreign entity or individual
8. Agent Authorization: Include when parties are represented by agents
1. Land Certificate Details: Copy and details of the land certificate (Sertifikat Hak Atas Tanah)
2. Property Maps: Official maps and site plans showing property boundaries and location
3. Payment Schedule: Detailed breakdown of payment installments and dates if applicable
4. Due Diligence Results: Summary of legal and technical due diligence findings
5. Required Permits: Copies of relevant permits and licenses
6. Power of Attorney: If applicable, powers of attorney for representatives
7. Tax Certificates: Copies of land and building tax certificates
8. Property Photos: Current photographs of the property and structures
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Agriculture
Industrial Manufacturing
Hospitality
Retail
Infrastructure
Mining
Energy
Tourism
Commercial Development
Residential Development
Warehouse and Logistics
Education
Relevant Teams
Legal
Real Estate
Property Management
Compliance
Operations
Asset Management
Investment
Risk Management
Facilities
Project Development
Corporate Affairs
Finance
Administration
Relevant Roles
Real Estate Manager
Property Development Director
Legal Counsel
Land Acquisition Manager
Property Rights Specialist
Compliance Officer
Real Estate Investment Manager
Project Manager
Development Director
Corporate Secretary
Risk Manager
Operations Director
Facilities Manager
Asset Manager
Property Administrator
Investment Analyst
Due Diligence Specialist
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