Sample Sales Agreement for the Purchase of a House with Installment Payments
Example of a House Sale and Purchase Agreement - A gradual cash house purchase and sale agreement must be made to avoid conflicts that may occur in the future.
As we know, gradual cash is actually a method of paying for a house in 'cash,' but it is paid in installments over a short period.
The period and number of installments can be determined based on a mutual agreement between the seller and the buyer.
This method can be used as a solution if you don't want to apply for a mortgage but also don't have enough money to buy a house outright.
The downside is that the gradual cash scheme requires you to pay off the house in a relatively short time.
Like house transactions in general, you are also required to make a gradual cash house sale and purchase agreement.
This letter is needed to avoid conflicts and as a requirement for managing certificates with the National Land Agency (BPN).
The format of a phased house sale and purchase agreement generally contains information about the seller and buyer.
Not only that, the agreement letter will also contain detailed information about the payment process.
As an illustration, see an example of a gradual cash house sale and purchase agreement letter below.
Also read the article about, Ideal House Size for Small Families for a Comfortable Place to Live..
Sample Sales Agreement for the Purchase of a House with Installment Payments
1. Short-Term Phased Cash House Sale and Purchase Agreement
GRADUAL CASH HOUSE SALE AND PURCHASE AGREEMENT
We, the undersigned:
First Party (Seller):
- Name: ......................................................
- Place, Date of Birth: ......................................................
- Occupation: ......................................................
- Address: ......................................................
- ID Number: ......................................................
Second Party (Buyer):
- Name: ......................................................
- Place, Date of Birth: ......................................................
- Occupation: ......................................................
- Address: ......................................................
- ID Number: ......................................................
On this day, ............, date............ (…………), month............, year ............, the First Party has agreed to sell a piece of land with an area of ............ square meters along with a building of ............ square meters located on the land registered under certificate number ........................ located at ................................................ to the Second Party at a cash price of ............. The payment was made in front of witnesses in stages.
ARTICLE 1: Price
The sale and purchase of the house and land are carried out and approved by each party with the following conditions:
- The price of the land per square meter is Rp ........................
- making the overall price of the land Rp ..........................
- The price of the house building is Rp .........................
- The overall price of the land and house is Rp .........................
The Second Party will pay the First Party for the land and house building with a gradual cash payment of Rp ........................ in installments over a period of .................., with monthly payments of Rp ......................
At the time of the sale and purchase of the land, both the First Party and the Second Party, as well as the Witnesses, declare that they are in a conscious condition, physically and mentally healthy, without any coercion or pressure from any party.
Matters not listed in this agreement will be resolved amicably through deliberation by both parties.
Thus, the House Sale and Purchase Agreement is made and agreed upon by the First Party, the Second Party, and the Witnesses.
If there is any administrative error, this sale and purchase deed can be corrected and completed with the consent of each party.
2. Example of a Detailed Phased House Sale and Purchase Agreement
HOUSE SALE AND PURCHASE AGREEMENT LETTER
CASH PHASED
On this day, [specify date], [specify month] [specify year], at [place of signing], the following parties have agreed to the terms of this agreement:
FIRST PARTY (Seller):
- [Full name of seller]
- [ID number]
- [Full address of the seller]
- [Job title]
Hereinafter referred to as the FIRST PARTY.
SECOND PARTY (Buyer):
- [Full name of buyer]
- [ID number]
- [Full address of the buyer]
- [Occupation]
Hereinafter referred to as the SECOND PARTY.
Both parties agree to execute the house sale and purchase transaction using a phased cash payment method. The terms are as follows:
Article 1: Object of the Agreement
The FIRST PARTY agrees to sell to the SECOND PARTY, and the SECOND PARTY agrees to purchase from the FIRST PARTY, a house and its land located at:
- [Full address of the house sold]
- [Land Area] square meters
- [Building Area] square meters
- [Certificate of Ownership (SHM) Number]
Article 2: Purchase and Sale Prices
The purchase and sale price of the aforementioned house is [Nominal House Price] Rupiah ([specified amount]). This amount will be paid by the SECOND PARTY to the FIRST PARTY in stages, with the following details:
- An advance payment of [Nominal Down Payment] Rupiah ([specified amount]) has been paid by the SECOND PARTY to the FIRST PARTY on [date].
- The remaining payment of [Nominal Remaining Payment] Rupiah ([variable amount]) will be paid by the SECOND PARTY to the FIRST PARTY in [number of installments]
installments, with the following details:
- The first installment of [Nominal First Installment] Rupiah ([specified amount]) is due on [First Installment Date], [Month].
- Subsequent installments of [Nominal Installment] Rupiah ([variable amount]) are due on [Installment Date] each month until paid in full.
- The repayment period will end on [Specify the Month and Year of Final Repayment].
Article 3: Payment Method
Installment payments will be made by the SECOND PARTY to the FIRST PARTY via:
- Bank transfer to [Bank Name] account of the FIRST PARTY with account number [Account Number].
- Proof of each installment payment will be provided by the FIRST PARTY to the SECOND PARTY.
Article 4: Handover of House
The FIRST PARTY will hand over the house to the SECOND PARTY once all installment payments have been completed. The handover will take place on [Date of Handover].
Article 5: Rights and Obligations
FIRST PARTY:
- Entitled to receive payments from the SECOND PARTY.
- Obligated to hand over the house to the SECOND PARTY after all installment payments have been completed.
SECOND PARTY:
- Obligated to make installment payments to the FIRST PARTY as agreed.
- Entitled to the house after completing all installment payments.
Article 6: Dispute Resolution
In the event of a dispute arising from this agreement, both parties agree to resolve it through mutual deliberation. If an agreement cannot be reached, disputes will be resolved through the District Court of [Name of the District Court].
Article 7: Conclusion
This agreement is made in two (2) copies, with one (1) copy for each party.
[Place of Signing], [Date]
FIRST PARTY
SECOND PARTY
Witnesses:
These are some examples of house sale and purchase agreements using the gradual cash payment method. We hope the above review is helpful!
