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The Owner Finance Contract serves as a crucial document in Indonesian property transactions where traditional bank financing is not utilized, and the property owner directly finances the buyer's purchase. This arrangement is particularly relevant in scenarios where buyers may not qualify for conventional mortgages or prefer direct owner financing. The document must comply with Indonesian Civil Code, Basic Agrarian Law, and financial regulations while establishing clear terms for the financing arrangement. It includes comprehensive details about the property, payment terms, security arrangements, and eventual title transfer conditions. The agreement is typically executed before a Land Deed Official (PPAT) and requires proper registration with relevant authorities. This type of contract has gained prominence in Indonesia's property market as an alternative financing solution, especially for commercial and residential properties.

1. Parties: Identification and details of the Property Owner/Seller and the Buyer

2. Background: Context of the transaction, including property overview and parties' intention to enter into owner financing arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Complete legal description of the property, including certificate numbers and land registry details

5. Purchase Price and Payment Terms: Total purchase price, down payment, and financing amount details

6. Financing Terms: Interest rate, payment schedule, loan term, and payment calculation methodology

7. Security and Collateral: Details of property as collateral and any additional security arrangements

8. Transfer of Title: Conditions and process for eventual transfer of property title

9. Rights and Obligations: Detailed responsibilities of both parties during the financing period

10. Insurance and Maintenance: Requirements for property insurance and maintenance responsibilities

11. Default and Remedies: Consequences of default and available remedies for both parties

12. Taxes and Costs: Allocation of property taxes, registration fees, and other costs

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictions

14. Dispute Resolution: Process for resolving disputes between parties

15. Notices: Method and addresses for official communications between parties

16. General Provisions: Standard contractual provisions including amendments, severability, and entire agreement