The Pre Lease Agreement serves as a crucial preliminary document in Indonesian property transactions, typically used when parties have agreed in principle to a lease but require time for due diligence, property preparations, or fulfillment of certain conditions before executing the main lease agreement. It is particularly relevant in commercial and industrial leasing where significant preparation or verification is needed. The document, governed by Indonesian law including the Civil Code and property regulations, typically includes provisions for exclusivity, property inspection rights, condition precedents, and basic terms of the proposed final lease. This agreement is essential for protecting both parties' interests during the interim period and ensuring smooth progression toward the final lease execution.
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1. Parties: Identification of the prospective landlord and tenant, including complete legal names, addresses, and registration numbers for companies
2. Background: Context of the agreement, including property details and parties' intentions to enter into a formal lease
3. Definitions: Key terms used throughout the agreement, including Property, Lease Terms, Commencement Date, etc.
4. Property Details: Specific description of the property including address, size, and permitted use
5. Lease Terms Overview: Summary of key terms for the proposed main lease including duration, rent, and basic obligations
6. Due Diligence Period: Timeline and process for tenant's inspection and verification of the property
7. Conditions Precedent: Conditions that must be satisfied before proceeding to the main lease
8. Security Deposit: Details of any initial deposit required and conditions for its use or return
9. Exclusivity: Landlord's commitment not to negotiate with other potential tenants during the pre-lease period
10. Costs and Expenses: Allocation of costs related to the pre-lease process and documentation
11. Termination: Circumstances under which either party can terminate the pre-lease agreement
12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction details
13. Execution: Formal signing section complying with Indonesian legal requirements
1. Works and Modifications: Details of any agreed modifications or fit-out works to be completed before the main lease, used when property requires adaptation for tenant
2. Environmental Conditions: Specific provisions regarding environmental assessments and requirements, used for industrial or sensitive properties
3. Broker Provisions: Terms relating to broker involvement and fees, included when property agents are involved
4. Regulatory Approvals: Specific provisions about obtaining necessary permits and licenses, used for regulated industries or specific property types
5. Parent Company Guarantee: Requirements for parent company support, used when tenant is a subsidiary or has limited financial history
6. Multiple Property Provisions: Additional terms for cases involving multiple properties or staged leasing arrangements
1. Property Plans: Detailed plans and drawings of the property including boundaries and measurements
2. Proposed Lease Terms: Detailed commercial terms for the main lease agreement
3. Due Diligence Requirements: Checklist and requirements for property inspection and verification
4. Form of Main Lease: Draft or outline of the proposed main lease agreement
5. Condition Report: Current condition of the property including photographs and descriptions
6. Required Permits: List of necessary permits and licenses required for property use
7. Timeline: Detailed schedule of key dates and deadlines for the pre-lease period
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