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Land Installment Contract for Indonesia

Land Installment Contract Template for Indonesia

A Land Installment Contract under Indonesian law is a legally binding agreement that facilitates the purchase of land through periodic payments over an extended period. This document, governed by Indonesian civil law and property regulations, enables buyers to acquire land while making regular installment payments to the seller. The contract must comply with the Basic Agrarian Law No. 5 of 1960 and related regulations, detailing payment terms, transfer of title conditions, and parties' rights and obligations. It includes specific provisions for default remedies, property maintenance, and eventual transfer of ownership upon completion of payments.

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What is a Land Installment Contract?

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.

What sections should be included in a Land Installment Contract?

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

What sections are optional to include in a Land Installment Contract?

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

What schedules should be included in a Land Installment Contract?

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

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

Agreement Contract

Cost

Free to use
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

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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