The Contract to Sell a House is a fundamental legal document used in Indonesian property transactions to formalize the sale and purchase of residential property. This document is essential when transferring property ownership in Indonesia and must comply with specific local legal requirements, including the involvement of a certified land deed official (PPAT). The contract is typically used after initial negotiations are complete and before the final deed of sale (Akta Jual Beli) is executed. It covers crucial elements such as property details, price, payment terms, and conditions precedent, while ensuring compliance with Indonesian property law, including the Basic Agrarian Law and relevant tax regulations. The document serves as a binding agreement that protects both parties' interests and provides a clear framework for completing the property transfer process according to Indonesian legal requirements.
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1. Parties: Identification of the seller and buyer with complete legal names, addresses, and ID numbers (KTP)
2. Background: Context of the sale, including brief description of the property and parties' intention to enter into a sale and purchase agreement
3. Definitions: Key terms used throughout the agreement including Property, Purchase Price, Completion Date, etc.
4. Property Details: Comprehensive description of the property including certificate number, land area, building area, and registered address
5. Purchase Price: The agreed purchase price and payment terms, including deposit amount and payment schedule
6. Payment Method: Specified method of payment, bank account details, and payment verification process
7. Conditions Precedent: Conditions that must be fulfilled before the sale can proceed, including legal and technical due diligence
8. Seller's Representations and Warranties: Seller's declarations regarding property ownership, absence of disputes, and property condition
9. Buyer's Representations and Warranties: Buyer's declarations regarding financial capacity and compliance with Indonesian property ownership laws
10. Completion Process: Steps for completing the transaction, including document signing and handover procedures
11. Tax Obligations: Specification of which party bears responsibility for various transaction taxes
12. Risk and Insurance: Transfer of risk and responsibility for insuring the property
13. Default and Termination: Consequences of breach and conditions for termination
14. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanism
15. Notices: Process for formal communications between parties
16. Execution: Signature blocks and execution requirements
1. Broker/Agent Provisions: Include when a property agent is involved in the transaction, specifying their role and commission
2. Mortgage Provisions: Include when the buyer is obtaining mortgage financing, including conditions related to loan approval
3. Tenant Provisions: Include when the property is currently tenanted, addressing lease termination or transfer
4. Furniture and Fixtures: Include when specific furniture or fixtures are included in the sale
5. Renovation Conditions: Include when there are ongoing or planned renovations affecting the sale
6. Foreign Ownership Provisions: Include when the buyer is a foreign national, addressing specific legal requirements
7. Power of Attorney: Include when either party is acting through an authorized representative
8. Strata Title Provisions: Include for apartments or properties under strata management
1. Property Details Schedule: Detailed technical description of the property including exact measurements, boundaries, and certificate details
2. Payment Schedule: Detailed breakdown of payment installments and due dates
3. Property Documents: List of all property certificates and permits included in the transfer
4. Inventory List: Detailed list of furniture, fixtures, and equipment included in the sale
5. Due Diligence Results: Summary of legal and technical due diligence findings
6. Tax Calculations: Breakdown of applicable taxes and responsibilities
7. Property Photos: Photographic documentation of the property condition at time of sale
8. Land Office Requirements: List of documents required for land office registration
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