Purchasing an Apartment? You Must Know This Agreement Model

 In Hang Out in Jakarta

There are two reasons for someone to buy an apartment, namely as a place to live and also as a long-term investment. Unfortunately, many people still do not fully understand the ins and outs of the apartment’s contract sale, especially when it’s still in the construction or marketing stage. This agreement is commonly referred to as the Pre-Commitment of Sale and Purchase Agreement (Pra-PPJB/ Perjanjian Pengikatan Jual Beli ), which is actually a part of the PPJB itself.

If it has been completed, you can move to the next step. After the construction phase has been finished, you can do the sale and purchase agreement before the Land Deed Official (PPAT/Pejabat pembuat Akta Tanah) by issuing the Contract of Sale and Purchase (AJB/Akta Jual Beli).

Furthermore, before doing PPJB, it’s advisable that the prospective buyers make sure whether the developer has possessed the land ownership certificate, The Building License (IMB), availability of infrastructure facilities, public utilities, for at 20 percent of the construction volume of the marketed apartment.

If the aforementioned matter has been fulfilled, then both parties can make PJB before the notary public by including the agreed matters like the condition of the marketed apartment, the location, facilities and infrastructure implementation, prices, public utilities, other miscellaneous facilities, and the time of apartment’s handover as stipulated in Article 43 Law No. 20 2011 concerning Condominium. As it was mentioned before, the pre-PPJB is an agreement when the developer still markets its flats. This is specifically regulated in the Decree of State Minister for Public Housing Affairs Number 11/KPTS/1994 concerning the Guidance of Conditional Sale and Purchase Agreement of Condominium. You can call this Pre-PPJB an “order letter”.

This “order letter” must contain at least these components:

–    Apartment names and building numbers

–    The floor number and the apartment type

–    The wide of apartment

–    Selling Price

–    Provisions for Down Payment

–    Apartment construction completion

–    Building’s specification

–    Provisions regarding statements and approval to accept the terms and conditions set.

–    Date and signature of the documents prepared by the developer


The Pre-PPJB that precedes the PPJB cannot be made before the notary public. It’s because even though it binds the developer and buyer relating to the sale and purchase of the apartment, it falls to the provisions in the Public Housing Constitution. That’s why the potential buyers are obliged to understand about this purchase contract in addition to choosing a comfortable apartment like Apartemen Selatan.

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