The Property Sales Agreement serves as the primary legal instrument for documenting property transactions in Indonesia. It is essential for any transfer of real estate ownership, whether residential, commercial, or industrial properties. This document must comply with Indonesian property laws, including the Basic Agrarian Law and relevant property registration regulations. The agreement is typically prepared by or in consultation with a Land Deed Official (PPAT) and must be executed in their presence. It includes crucial details about the property, parties involved, purchase price, payment terms, and conditions for transfer. Special considerations are incorporated for different types of property rights (such as Hak Milik, Hak Guna Bangunan), foreign ownership restrictions, and regional specific requirements. The document is fundamental for ensuring legal certainty in property transactions and facilitating proper registration with the National Land Office.
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1. Parties: Identification and details of the Seller and Buyer, including their legal capacity to enter into the agreement
2. Background: Context of the transaction, brief description of the property, and intention of the parties to enter into the sale and purchase agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Details: Comprehensive description of the property including land certificate details, boundaries, and existing structures
5. Purchase Price: Agreed purchase price and payment structure
6. Payment Terms: Detailed payment schedule, method of payment, and consequences of payment default
7. Conditions Precedent: Conditions that must be fulfilled before the completion of the sale
8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, encumbrances, and legal status
9. Buyer's Representations and Warranties: Buyer's declarations regarding legal capacity and financial ability to purchase
10. Completion: Process and requirements for completing the property transfer
11. Transfer of Title: Procedures for legal transfer of property ownership
12. Taxes and Costs: Allocation of transaction taxes, registration fees, and other costs
13. Default and Termination: Consequences of breach and conditions for agreement termination
14. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
15. Dispute Resolution: Procedures for handling disputes between parties
1. Foreign Ownership Provisions: Required when buyer is a foreign national, detailing compliance with Indonesian foreign ownership restrictions
2. Mortgage and Financing: Include when property purchase involves bank financing or existing mortgages
3. Property Management Handover: Required for properties with existing management arrangements or tenancies
4. Development Obligations: Include when property requires specific development or construction obligations
5. Environmental Provisions: Required when property has environmental considerations or obligations
6. Strata Title Provisions: Include for apartment or condominium purchases
7. Force Majeure: Optional clause for handling unforeseen circumstances affecting the transaction
8. Broker Provisions: Include when real estate agents or brokers are involved in the transaction
1. Property Description Schedule: Detailed technical description of the property, including certificates, measurements, and boundaries
2. Payment Schedule: Detailed breakdown of payment installments and due dates
3. Due Diligence Results: Summary of property inspection and legal due diligence findings
4. Required Documents: List of documents required for property transfer and registration
5. Property Handover Checklist: Inventory of items included in the sale and condition report
6. Tax Calculations: Breakdown of applicable taxes and fees
7. Land Certificate Details: Copies and details of land certificates and ownership history
8. Property Photos and Plans: Visual documentation of the property and architectural plans
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