The Letter of Offer to Purchase is a crucial preliminary document in Indonesian property transactions, serving as the first formal step in the property acquisition process. This document is typically used when a prospective buyer has identified a property of interest and wishes to formalize their purchase intention before proceeding with a full sale and purchase agreement. The letter outlines essential terms including the proposed purchase price, payment structure, and any specific conditions that need to be met. Under Indonesian law, while not as formal as the final sale agreement that requires notarization, the Letter of Offer to Purchase should still be drafted with careful consideration of local property regulations and legal requirements. It's particularly important in commercial real estate transactions and can be used for various types of properties, from residential to commercial and industrial. The document helps establish clear communication between parties and can serve as a reference point for the subsequent legal documentation.
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1. Letter Header: Date, recipient's full name and address, and reference number if applicable
2. Subject Line: Clear indication that this is an Offer to Purchase for the specific property
3. Opening Statement: Formal introduction and clear statement of intent to purchase
4. Property Details: Complete and accurate description of the property including address, land certificate number, and registered size
5. Purchase Price: Clear statement of the offered purchase price in both numbers and words
6. Payment Terms: Proposed payment structure including deposit amount and timing of payments
7. Key Conditions: Essential conditions that must be met for the purchase to proceed
8. Timeline: Proposed timeline for completion of the transaction and validity period of the offer
9. Closing: Request for response, contact details, and formal closing
10. Signature Block: Space for offeror's signature, name, and details
1. Due Diligence Period: Include when buyer requires a specific period to conduct property and legal checks
2. Financing Clause: Include when purchase is contingent on obtaining financing
3. Property Inspection: Include when offering party wants to specify rights to inspect the property
4. Current Tenancy: Include when property is currently tenanted and handling of existing tenancy needs to be addressed
5. Foreign Ownership Structure: Include when buyer is foreign and special ownership structure needs to be specified
6. Broker Commission: Include when a broker is involved in the transaction
1. Property Details Schedule: Detailed description of the property including exact measurements, boundaries, and certificates
2. Payment Schedule: Detailed breakdown of payment terms and timeline if payment structure is complex
3. Due Diligence Checklist: List of required documents and verifications to be completed
4. Property Photos: Recent photographs of the property referenced in the offer
5. Title Documents: Copies of relevant property certificates and ownership documents
Relevant legal definitions
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Relevant Industries
Real Estate
Commercial Property
Residential Property
Industrial Property
Retail Property
Hospitality
Agriculture
Manufacturing
Office Space
Mixed-Use Development
Warehouse and Logistics
Relevant Teams
Legal
Real Estate
Property Management
Corporate Development
Finance
Investment
Procurement
Facilities Management
Business Development
Risk Management
Compliance
Operations
Relevant Roles
Real Estate Manager
Property Acquisition Manager
Legal Counsel
Corporate Lawyer
Real Estate Broker
Property Developer
Investment Manager
Asset Manager
Business Development Manager
Facilities Manager
Corporate Real Estate Manager
Property Portfolio Manager
Real Estate Investment Analyst
Chief Financial Officer
Chief Executive Officer
Real Estate Director
Procurement Manager
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