The Land Purchase And Sale Agreement is a crucial legal document used in Indonesian property transactions to formalize the transfer of land ownership. It is essential when any party wishes to purchase or sell land in Indonesia, whether for residential, commercial, or industrial purposes. The document must comply with various Indonesian regulations, including the Basic Agrarian Law No. 5 of 1960, Government Regulation No. 24 of 1997 on Land Registration, and relevant tax laws. It includes detailed information about the property, parties involved, purchase price, payment terms, warranties, and transfer procedures. The agreement must be executed before a Land Deed Official (PPAT) and requires registration with the local Land Office. Special considerations apply for foreign ownership, customary land rights, and specific land use categories under Indonesian law.
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1. Parties: Identification of the seller and purchaser, including complete legal names, addresses, and ID numbers as required by Indonesian law
2. Background: Context of the transaction, including brief description of the property and parties' intention to enter into the agreement
3. Definitions: Definitions of key terms used throughout the agreement, including Indonesian legal terminology
4. Object of Sale: Detailed description of the land, including certificate number, location, boundaries, and size according to official measurements
5. Purchase Price: Agreed purchase price, payment terms, method of payment, and schedule of installments if applicable
6. Payment Terms and Conditions: Detailed payment structure, including deposit, installments, and final payment requirements
7. Representations and Warranties: Seller's warranties regarding ownership, absence of disputes, and property condition; buyer's warranties regarding payment capability
8. Rights and Obligations: Detailed responsibilities of both parties before, during, and after the transaction
9. Handover Process: Terms and conditions for the physical handover of the property and transfer of ownership rights
10. Tax Obligations: Allocation of tax responsibilities including Land and Building Transfer Tax (BPHTB) and Income Tax
11. Registration and Transfer of Title: Process and requirements for legal transfer of title at the Land Office
12. Default and Termination: Consequences of breach and conditions for termination of the agreement
13. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
14. Dispute Resolution: Mechanism for resolving disputes, including choice of forum and applicable law
15. Notices: Method and addresses for official communications between parties
16. Governing Law: Specification of Indonesian law as the governing law
17. Execution: Signing requirements and effective date of the agreement
1. Broker/Agent Provisions: Include when a property agent is involved in the transaction
2. Mortgage Release: Include when the property has an existing mortgage that needs to be discharged
3. Building Conditions: Include when buildings on the land are part of the sale
4. Environmental Conditions: Include when environmental issues or restrictions affect the property
5. Third Party Rights: Include when there are existing tenants or other third-party rights
6. Development Conditions: Include when the land is subject to development restrictions or requirements
7. Foreign Ownership Provisions: Include when either party is a foreign national, addressing specific restrictions
8. Customary Law Considerations: Include when the land involves adat (customary) law implications
1. Property Details: Detailed technical description of the land, including official measurements and boundaries
2. Land Certificate: Copy of the current land certificate and ownership history
3. Payment Schedule: Detailed breakdown of payment terms and installments if applicable
4. Due Diligence Results: Summary of land and title searches, encumbrances check
5. Site Plan: Official site plan showing the property boundaries and location
6. Tax Certificates: Copies of land and building tax (PBB) certificates
7. Required Permits: Copies of relevant permits and licenses
8. Property Photos: Current photographs of the property and boundaries
9. Power of Attorney: If applicable, power of attorney documents for either party
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Agriculture
Industrial Development
Commercial Property
Residential Property
Tourism and Hospitality
Manufacturing
Retail
Warehousing and Logistics
Infrastructure Development
Mining
Energy
Relevant Teams
Legal
Real Estate
Property Management
Business Development
Finance
Tax
Compliance
Risk Management
Operations
Project Management
Asset Management
Investment
Corporate Development
Relevant Roles
Real Estate Manager
Property Development Director
Legal Counsel
Corporate Lawyer
Land Acquisition Manager
Property Manager
Business Development Manager
Investment Manager
Facility Manager
Project Manager
Chief Financial Officer
Tax Manager
Compliance Officer
Risk Manager
Real Estate Agent
Property Valuer
Land Surveyor
Development Director
Asset Manager
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