A Lease Agreement under Indonesian law is a crucial document used to formalize the temporary transfer of property rights from an owner (lessor) to a tenant (lessee) in exchange for periodic rental payments. This document is essential for both residential and commercial property transactions in Indonesia, ensuring compliance with the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata) and relevant property regulations. The agreement typically includes detailed provisions about the property, rental terms, maintenance responsibilities, and dispute resolution procedures, while incorporating specific requirements of Indonesian property law and local regulations. It serves as a legally binding document that protects the interests of both parties and provides clear guidelines for the duration of the lease relationship.
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1. Parties: Identification of the lessor and lessee, including complete legal names, addresses, and identification numbers
2. Background: Context of the lease agreement and brief description of the property
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Details: Detailed description of the leased property, including address and specifications
5. Term and Renewal: Duration of the lease, commencement date, and renewal terms
6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences
7. Security Deposit: Amount, terms of holding, and conditions for return of the security deposit
8. Use of Property: Permitted uses of the property and any restrictions
9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs
10. Utilities and Services: Responsibility for utility connections, payments, and related services
11. Insurance: Required insurance coverage for both parties
12. Rights and Obligations: General rights and obligations of both lessor and lessee
13. Termination: Conditions and procedures for early termination
14. Governing Law: Specification of Indonesian law as governing law and jurisdiction
15. Dispute Resolution: Process for resolving disputes between parties
16. Notices: Method and addresses for official communications between parties
17. Execution: Signature blocks and execution requirements
1. Fit-out Works: Used when the tenant is permitted to make modifications to the property, specifying conditions and requirements
2. Foreign Ownership Compliance: Required when either party is a foreign entity, ensuring compliance with Indonesian foreign ownership laws
3. Subletting and Assignment: Include when subletting or assignment rights are being granted to the tenant
4. Force Majeure: Detailed provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters
5. Property Management Rules: Required for properties in managed complexes or buildings
6. Mortgage and Superior Landlord Provisions: Include when the property is subject to a mortgage or superior lease
7. Environmental Compliance: Required for industrial or commercial properties with specific environmental requirements
8. Trading Requirements: Include for commercial leases where specific trading hours or conditions apply
1. Property Layout Plan: Detailed floor plan or layout of the leased property
2. Inventory List: List of furniture, fixtures, and equipment included in the lease
3. Service Charges Breakdown: Detailed breakdown of any service charges or additional fees
4. Building Rules and Regulations: Specific rules applicable to the property or building complex
5. Condition Report: Detailed report on the condition of the property at the start of the lease
6. Maintenance Schedule: Schedule of regular maintenance responsibilities for both parties
7. Permitted Alterations: Specifications of allowed modifications to the property
8. Required Licenses and Permits: List of necessary licenses and permits for property use
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Residential Property
Commercial Property
Retail
Industrial
Hospitality
Office Space
Manufacturing
Warehousing
Mixed-Use Development
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Finance
Risk & Compliance
Administration
Property Management
Asset Management
Business Development
Relevant Roles
Property Manager
Real Estate Manager
Facilities Manager
Legal Counsel
Corporate Lawyer
Real Estate Agent
Leasing Manager
Operations Manager
Finance Director
Asset Manager
Property Administrator
Compliance Officer
Risk Manager
Business Development Manager
Branch Manager
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