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The Indonesian Civil Code (ICC), as the regulatory foundation
for contracts, does not regulate pre-contract documents, such as
letter of intent, memorandum of understanding, term sheet or other
non-binding agreements, although these are customary to be entered
into by the transacting parties prior to executing a binding
contract.
Before signing a contract as part of a real estate transaction,
the buyer will conduct due diligence to identify any material risks
that may affect the transaction. The result of the due diligence is
crucial to determine the terms and conditions of the binding