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Purchase Sale Agreement (Real Estate) for Indonesia

Purchase Sale Agreement (Real Estate) Template for Indonesia

A comprehensive legal document governed by Indonesian law that facilitates the transfer of real estate property ownership from a seller to a purchaser. This agreement outlines the terms and conditions of the property sale, including detailed property descriptions, purchase price, payment terms, and obligations of both parties. It incorporates specific requirements under Indonesian property law, including compliance with the Basic Agrarian Law and relevant property registration regulations. The document ensures proper documentation for land office registration and includes provisions for tax obligations and property transfer procedures specific to the Indonesian legal system.

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What is a Purchase Sale Agreement (Real Estate)?

The Purchase Sale Agreement (Real Estate) is a crucial legal document used in Indonesian property transactions to formalize the transfer of real estate ownership. It is essential for both residential and commercial property transactions in Indonesia, requiring compliance with specific local regulations including the Basic Agrarian Law (UU No. 5/1960) and property registration requirements. This document type is mandatory for property transfers in Indonesia and must be executed before a licensed Land Deed Official (PPAT). The agreement covers all aspects of the property transaction, from purchase price and payment terms to warranties and title transfer procedures, while accounting for unique Indonesian property ownership structures and foreign investment restrictions where applicable. It serves as the foundation for the official property transfer process at the local land office and establishes the rights and obligations of all parties involved in the transaction.

What sections should be included in a Purchase Sale Agreement (Real Estate)?

1. Parties: Identification of the Seller and Purchaser with complete details as required under Indonesian law

2. Background: Context of the transaction and brief description of the property being sold

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

4. Property Details: Comprehensive description of the property including certificate number, land area, building specifications, and boundaries

5. Purchase Price: The agreed purchase price and detailed payment structure

6. Payment Terms: Payment schedule, method of payment, and consequences of payment default

7. Conditions Precedent: Conditions that must be satisfied before completion of the sale

8. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and compliance with regulations

9. Transfer of Title: Process and obligations for transferring property title

10. Taxes and Costs: Allocation of responsibility for transfer taxes, notary fees, and other transaction costs

11. Property Handover: Timing and process for physical handover of the property

12. Default and Termination: Consequences of breach and termination rights

13. Governing Law: Confirmation of Indonesian law as governing law

14. Dispute Resolution: Process for resolving disputes

15. Notices: Process for giving formal notices under the agreement

16. Execution: Signature blocks and execution requirements

What sections are optional to include in a Purchase Sale Agreement (Real Estate)?

1. Mortgage Release: Required if the property has an existing mortgage that needs to be discharged

2. Foreign Investment Provisions: Required if the purchaser is a foreign investor or entity

3. Strata Title Provisions: Required for apartments or properties under strata title

4. Agent Commission: Required if real estate agents are involved in the transaction

5. Construction Completion: Required for properties under construction or off-plan purchases

6. Tenant Rights: Required if the property is currently leased to tenants

7. Environmental Provisions: Required for properties with specific environmental considerations or requirements

What schedules should be included in a Purchase Sale Agreement (Real Estate)?

1. Property Details Schedule: Detailed technical description of the property, including exact measurements and boundaries

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

3. Title Documents: Copies of land certificates and other title documents

4. Property Tax Records: History of property tax payments and current status

5. Building Permits: Copies of relevant building permits and certificates

6. Property Photos: Recent photographs of the property and its boundaries

7. Site Plan: Official site plan showing property location and boundaries

8. Building Inspection Report: Technical report on building condition (if applicable)

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

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions













































Clauses





































Relevant Industries

Real Estate

Property Development

Construction

Banking & Finance

Legal Services

Property Management

Hospitality

Retail

Commercial Property

Residential Property

Industrial Property

Agriculture (for land transactions)

Tourism (for hospitality properties)

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Corporate Affairs

Investment

Operations

Finance

Risk Management

Business Development

Asset Management

Relevant Roles

Real Estate Lawyer

Property Developer

Real Estate Agent

Legal Counsel

Property Manager

Compliance Officer

Land Deed Official

Corporate Lawyer

Real Estate Investment Manager

Property Acquisition Manager

Legal Director

Chief Legal Officer

Real Estate Transaction Manager

Property Rights Specialist

Land Registration Officer

Real Estate Portfolio 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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