The Pre Sale Contract is a fundamental document in Indonesian property transactions where properties are sold before completion. It is commonly used in both residential and commercial property developments, providing a legal framework for off-plan property sales. This document must strictly comply with Indonesian regulations, including the Consumer Protection Law and specific ministerial regulations governing property pre-sales. The contract typically includes comprehensive details about the property, payment terms, construction specifications, and delivery timelines. It serves to protect both the developer's and buyer's interests while ensuring transparency in the transaction. The document is particularly relevant in Indonesia's growing property market, where pre-selling is a common practice for financing development projects.
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1. Parties: Identification of the seller/developer and buyer with complete legal details as required under Indonesian law
2. Background: Context of the pre-sale arrangement and brief description of the property development project
3. Definitions: Definitions of key terms used throughout the agreement, including technical terms and Indonesian legal terminology
4. Object of Sale: Detailed description of the property being sold, including specific unit details and specifications
5. Purchase Price: Total purchase price, payment schedule, and payment methods in accordance with Indonesian regulations
6. Payment Terms: Detailed payment structure including installments, down payment, and financing arrangements
7. Construction Timeline: Expected completion dates and construction milestones
8. Handover Conditions: Terms and conditions for property handover, including inspection and acceptance procedures
9. Warranties: Developer's warranties regarding property condition and construction quality
10. Rights and Obligations: Detailed responsibilities of both parties during the pre-sale period
11. Default and Remedies: Consequences of default by either party and available remedies
12. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
13. Governing Law: Confirmation of Indonesian law application and jurisdiction
14. Dispute Resolution: Procedures for resolving disputes, including mediation and litigation options
15. Notices: Methods and addresses for official communications between parties
16. Execution: Signature requirements and execution formalities
1. Mortgage Provisions: Include when buyer requires bank financing, detailing coordination with financial institutions
2. Property Management: Include for apartments or complexes with shared facilities and management arrangements
3. Assignment Rights: Include when transfer of rights before completion needs to be addressed
4. Tax Provisions: Include detailed tax arrangements when complex tax situations apply
5. Insurance Requirements: Include when specific insurance coverage is required during construction
6. Strata Title Provisions: Include for apartments requiring specific strata title arrangements
7. Third Party Rights: Include when other parties have interests in the development
8. Environmental Compliance: Include when project has specific environmental requirements or certifications
1. Property Specifications: Detailed technical specifications of the property including floor plans, materials, and finishes
2. Payment Schedule: Detailed breakdown of payment installments with due dates
3. Site Plan: Master plan of the development showing unit location and common areas
4. Building Permits: Copies of relevant building permits and approvals
5. Developer's Licenses: Copies of developer's business and development licenses
6. Construction Timeline: Detailed construction schedule with milestones
7. Facility Specifications: Details of common facilities and amenities included
8. Form of Handover Certificate: Template for property handover documentation
9. Quality Specifications: Detailed quality standards and specifications for materials and construction
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Construction
Banking and Finance
Residential Development
Commercial Property
Mixed-Use Development
Infrastructure Development
Relevant Teams
Legal
Real Estate
Sales
Project Management
Compliance
Finance
Construction
Customer Relations
Business Development
Property Management
Relevant Roles
Property Development Manager
Legal Counsel
Real Estate Manager
Sales Director
Project Manager
Contract Administrator
Compliance Officer
Property Sales Manager
Development Director
Construction Manager
Finance Manager
Customer Relations Manager
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