The Guarantee Lease Agreement is a specialized legal instrument used in Indonesia when additional security is required for a property lease transaction. This document is particularly relevant when landlords seek extra assurance beyond a standard security deposit, typically in high-value commercial leases or when dealing with newly established businesses. The agreement combines standard lease provisions with comprehensive guarantee clauses, ensuring the guarantor's commitment to fulfill the tenant's obligations if they default. It must comply with Indonesian property law, contract law, and guarantee regulations, including specific requirements under the Indonesian Civil Code (KUH Perdata). The document is structured to protect all parties' interests while maintaining clarity on obligations, enforcement procedures, and remedies available under Indonesian law.
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1. Parties: Identification of all parties: Landlord, Tenant, and Guarantor(s)
2. Background: Context of the agreement, including property details and purpose of the guarantee
3. Definitions: Definitions of key terms used throughout the agreement
4. Lease Terms: Core lease provisions including duration, rent amount, and payment terms
5. Guarantee Provisions: Scope and extent of the guarantee, including guarantor's obligations and limitations
6. Property Use and Maintenance: Terms regarding permitted use, maintenance responsibilities, and property condition
7. Security Deposit: Details of security deposit amount, handling, and conditions for return
8. Insurance Requirements: Required insurance coverage for property and liability
9. Default and Remedies: Events of default and available remedies for both lease and guarantee provisions
10. Termination: Conditions and procedures for termination of the lease and guarantee
11. Notices: Requirements for formal communications between parties
12. Governing Law and Jurisdiction: Specification of Indonesian law application and jurisdiction
13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Foreign Investment Provisions: Required when the tenant or guarantor is a foreign entity, addressing specific requirements under Indonesian foreign investment laws
2. Multiple Guarantors: Additional provisions needed when there is more than one guarantor, defining joint and several liability
3. Property Improvement Rights: Terms regarding tenant's rights to make improvements or modifications to the property
4. Subletting and Assignment: Terms regarding the right to sublet or assign the lease, if permitted
5. Force Majeure: Specific provisions for handling unforeseen circumstances or events beyond parties' control
6. Environmental Compliance: Required for properties where environmental regulations are particularly relevant
7. Building Management Rules: Necessary for properties in managed buildings or complexes
1. Schedule 1 - Property Description: Detailed description of the leased property, including floor plans and boundaries
2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments, including escalation rates if applicable
3. Schedule 3 - Condition Report: Initial condition report of the property with photographs
4. Schedule 4 - Permitted Use: Detailed description of permitted activities and use restrictions
5. Schedule 5 - Guarantor Financial Information: Required financial information and documentation from guarantor
6. Schedule 6 - Building Rules and Regulations: Specific rules and regulations applicable to the property
7. Appendix A - Form of Notice: Standard forms for various notices required under the agreement
8. Appendix B - Handover Protocol: Procedures and checklist for property handover
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