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Land Purchase Deed for Indonesia

Land Purchase Deed Template for Indonesia

A Land Purchase Deed is a formal legal document used in Indonesia to transfer ownership rights of land and/or buildings from a seller to a buyer. This deed must be executed before a licensed Land Deed Official (PPAT) in accordance with Indonesian Basic Agrarian Law and related regulations. The document contains detailed information about the property, parties involved, purchase price, and terms of transfer, while ensuring compliance with local land registration requirements and ownership restrictions. It serves as the primary evidence of the property transfer and is required for subsequent registration at the National Land Office (BPN).

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What is a Land Purchase Deed?

The Land Purchase Deed (Akta Jual Beli) is a crucial legal instrument in Indonesian property transactions, required under the Basic Agrarian Law No. 5 of 1960 and related regulations. This document is mandatory for any transfer of land rights and must be executed before a licensed Land Deed Official (PPAT). It is used when transferring ownership of registered land, whether for residential, commercial, or industrial purposes. The deed includes comprehensive details about the property, verification of ownership rights, purchase price, payment confirmation, and transfer terms. It must comply with strict formatting and content requirements established by Indonesian land law and serves as the basis for updating land registration records at the National Land Office. Foreign investors must pay particular attention to ownership restrictions and special requirements when involved in such transactions.

What sections should be included in a Land Purchase Deed?

1. Parties: Identification of the seller and buyer with complete details including name, ID number (KTP), address, and citizenship status

2. Background: Context of the transaction including brief history of land ownership and purpose of the transfer

3. Definitions: Key terms used in the deed including property definitions, technical terms, and legal references

4. Property Details: Comprehensive description of the land including certificate number, location, boundaries, size, and land use category

5. Ownership Verification: Confirmation of seller's legitimate ownership and authority to transfer the property

6. Purchase Price: Agreed purchase price, payment terms, and confirmation of payment receipt

7. Transfer of Rights: Legal statement of transfer of ownership rights from seller to buyer

8. Representations and Warranties: Seller's declarations regarding property condition, encumbrances, and legal status

9. Handover Provisions: Terms and timing for physical handover of the property

10. Tax Obligations: Statement of responsibility for transfer taxes (BPHTB and PPh) and other related costs

11. Registration Requirements: Procedures and obligations for registering the transfer with the Land Office

12. Governing Law: Confirmation of Indonesian law application and jurisdiction

13. Execution: Formal signing section including PPAT's official declaration and witness statements

What sections are optional to include in a Land Purchase Deed?

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

2. Spousal Consent: Required when the seller is married and the property is matrimonial property

3. Corporate Authority: Required when either party is a corporate entity, including corporate approvals

4. Power of Attorney: Required when any party is represented by an attorney-in-fact

5. Foreign Investment Provisions: Required when the buyer is a foreign investor or foreign-owned company

6. Zoning Compliance: Required when the property use requires specific zoning confirmations

7. Environmental Declarations: Required when the property has specific environmental considerations or requirements

What schedules should be included in a Land Purchase Deed?

1. Property Title Documents: Copies of land certificates and historical ownership documents

2. Site Plan: Detailed plan showing property boundaries, dimensions, and coordinates

3. Tax Payment Receipts: Proof of payment of land and building tax (PBB) and transfer taxes

4. Identity Documents: Copies of parties' identity cards, family cards, and other personal documents

5. Land Office Clearance: Current land registration details and clearance certificate

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

7. Payment Evidence: Proof of purchase price payment and transaction records

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Sale Deed

Cost

Free to use

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