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Land Sale Contract for Indonesia

Land Sale Contract Template for Indonesia

This document is a comprehensive legal agreement governing the sale and purchase of land in Indonesia, structured in accordance with Indonesian law, particularly the Basic Agrarian Law (Law No. 5 of 1960) and related regulations. It sets out the terms and conditions for transferring land ownership, including detailed property descriptions, purchase price, payment terms, and completion requirements. The contract incorporates specific Indonesian legal requirements such as execution before a Land Deed Official (PPAT) and registration with the National Land Office (BPN), while addressing key aspects such as tax obligations, warranties, and regulatory compliance requirements specific to Indonesian land law.

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What is a Land Sale Contract?

The Land Sale Contract is a fundamental legal document used in Indonesia for transferring land ownership between parties. It is essential for any transaction involving the sale of land, whether for residential, commercial, or industrial purposes. The document must comply with Indonesian legal requirements, particularly the Basic Agrarian Law and related regulations, and requires execution before a Land Deed Official (PPAT). This contract type is crucial as it forms the basis for the official deed of transfer (Akta Jual Beli) and subsequent registration with the National Land Office (BPN). It includes comprehensive details about the land, parties' obligations, payment terms, and regulatory compliance requirements, while addressing specific Indonesian law considerations such as land use rights, foreign ownership restrictions, and local property regulations.

What sections should be included in a Land Sale Contract?

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 description of the land and the parties' intention to enter into a sale and purchase agreement

3. Definitions: Definitions of key terms used throughout the agreement, including technical terms related to land rights and Indonesian legal concepts

4. Object of Sale: Detailed description of the land, including certificate number, location, boundaries, and size as registered with the National Land Office

5. Purchase Price: Agreed purchase price, payment terms, method of payment, and payment schedule

6. Representations and Warranties: Seller's warranties regarding ownership, absence of encumbrances, and compliance with laws; buyer's warranties regarding capability to purchase

7. Conditions Precedent: Conditions that must be fulfilled before the transfer of land ownership can occur

8. Completion: Process and requirements for completing the sale, including execution of deed of sale (AJB) before PPAT

9. Rights and Obligations: Detailed responsibilities of both parties before, during, and after the transfer

10. Taxes and Costs: Allocation of transaction costs, including transfer tax, notary fees, and registration fees

11. Default and Termination: Consequences of breach and circumstances under which the agreement may be terminated

12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction for disputes

13. Dispute Resolution: Process for resolving disputes, including choice of forum and method

14. Notices: Process and requirements for formal communications between parties

15. Execution: Signature blocks and formal closing language as required under Indonesian law

What sections are optional to include in a Land Sale Contract?

1. Broker/Agent Provisions: Include when a property agent or broker is involved in the transaction

2. Mortgage Release: Include when the property has an existing mortgage that needs to be discharged

3. Third Party Consent: Include when consent from third parties (e.g., spouse, co-owners) is required

4. Building Handover: Include when buildings or structures on the land are part of the sale

5. Environmental Provisions: Include when there are specific environmental concerns or requirements

6. Foreign Ownership Provisions: Include when either party is a foreign national or entity

7. Strata Title Provisions: Include when the land includes apartments or multi-story buildings

8. Agricultural Land Provisions: Include when the land is classified as agricultural land with specific restrictions

What schedules should be included in a Land Sale Contract?

1. Land Certificate Details: Copy or details of the land certificate including plot number, boundaries, and size

2. Payment Schedule: Detailed breakdown of payment installments and due dates if applicable

3. Property Tax History: Record of property tax payments and current status

4. Land Use Permits: Copies of relevant land use permits and zoning certificates

5. Site Plan: Official site plan showing boundaries, access roads, and easements

6. Building Permits: Copies of building permits for any structures on the land

7. Due Diligence Results: Summary of legal and technical due diligence findings

8. Power of Attorney: If applicable, power of attorney documents for representatives

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

Cost

Free to use
Relevant legal definitions











































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Relevant Industries

Real Estate

Property Development

Agriculture

Industrial

Commercial

Residential Property

Construction

Infrastructure

Hospitality

Retail

Manufacturing

Mining

Education

Healthcare

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Finance

Business Development

Project Development

Operations

Risk Management

Corporate Affairs

Facilities Management

Investment

Construction

Land Acquisition

Relevant Roles

Real Estate Manager

Property Developer

Legal Counsel

Corporate Lawyer

Property Manager

Land Acquisition Manager

Compliance Officer

Real Estate Agent

Property Consultant

Development Director

Investment Manager

Facilities Manager

Chief Legal Officer

Real Estate Transaction Manager

Project Manager

Construction Manager

Real Estate Portfolio Manager

Business Development Manager

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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