The Land Installment Contract is essential for property transactions in Indonesia where immediate full payment is not feasible or desired. This contract type allows buyers to purchase land through structured payments while providing sellers with security until full payment is received. The document must comply with Indonesian property laws, including the Basic Agrarian Law and related regulations, and requires registration with appropriate authorities. It typically includes comprehensive details about the property, payment schedule, rights and obligations of parties, and conditions for final title transfer. The contract is particularly useful for residential, commercial, and agricultural land purchases, providing a legally secure framework for extended payment arrangements while ensuring proper documentation and protection of both parties' interests throughout the installment period.
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1. Parties: Identification of the seller and purchaser with complete legal names and details
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 Description: Detailed legal description of the land, including certificate number, boundaries, and size
5. Purchase Price and Payment Terms: Total purchase price, down payment, installment amounts, payment schedule, and interest rates
6. Title and Ownership: Current status of title, conditions for transfer, and timing of final title transfer
7. Representations and Warranties: Seller's warranties regarding property ownership, encumbrances, and legal status
8. Buyer's Obligations: Responsibilities of the buyer including payments, maintenance, and compliance with regulations
9. Seller's Obligations: Responsibilities of the seller including title transfer, documentation, and property handover
10. Default and Remedies: Consequences of default by either party and available remedies
11. Insurance and Risk: Requirements for property insurance and allocation of risk during the installment period
12. Taxes and Costs: Allocation of taxes, registration fees, and other transaction costs
13. Notices: Process for sending and receiving formal communications between parties
14. Governing Law: Specification of Indonesian law as governing law and jurisdiction
15. Execution: Signature blocks and execution requirements
1. Property Use Restrictions: Specific restrictions on property use during the installment period, included when the property has specific zoning or usage limitations
2. Early Payment Provisions: Terms for early payment of installments and any applicable discounts, included when early payment options are offered
3. Third Party Rights: Rights of third parties if any, included when there are existing tenants or other rights holders
4. Development Obligations: Requirements for property development or construction, included for undeveloped land
5. Environmental Conditions: Environmental requirements and responsibilities, included for properties with environmental concerns
6. Force Majeure: Provisions for unforeseen circumstances, included when specific risks need to be addressed
7. Assignment Rights: Terms for transferring contract rights, included when assignment rights are to be granted
1. Schedule A - Property Details: Detailed technical description of the property including maps and surveys
2. Schedule B - Payment Schedule: Detailed installment payment schedule with dates and amounts
3. Schedule C - Title Documents: Copies of current title certificates and relevant land documentation
4. Schedule D - Property Inspection Report: Current condition report of the property
5. Schedule E - Permits and Licenses: Copies of relevant permits, licenses, and zoning certificates
6. Appendix 1 - Property Photos: Current photographs of the property and boundaries
7. Appendix 2 - Required Forms: Standard government forms required for land transactions in Indonesia
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Construction
Agriculture
Industrial Development
Commercial Property
Residential Property
Banking and Finance
Infrastructure Development
Tourism and Hospitality
Relevant Teams
Legal
Real Estate
Property Development
Compliance
Finance
Land Administration
Contract Management
Property Management
Investment
Risk Management
Relevant Roles
Real Estate Manager
Property Development Director
Legal Counsel
Land Acquisition Manager
Property Rights Specialist
Contract Administrator
Real Estate Agent
Property Investment Manager
Compliance Officer
Land Registration Officer
Property Finance Manager
Real Estate Development Executive
Land Administration Manager
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