The Rent Cancellation Agreement is a crucial document used when parties mutually agree to terminate a lease before its scheduled end date or formalize the end of a lease term. This document, governed by Indonesian law and particularly the Civil Code (KUHPer), serves to protect both landlords and tenants by clearly documenting the terms of the lease termination. It is commonly used in situations where early termination is desired by mutual consent, business relocations, property sales, or other circumstances requiring formal lease conclusion. The agreement typically includes provisions for final settlements, property handover procedures, and mutual releases, ensuring a clean break between parties and preventing future disputes. This document is essential for proper record-keeping and legal compliance in Indonesian property transactions.
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1. Parties: Identification of the landlord and tenant, including their complete legal names, addresses, and any relevant registration numbers
2. Background: Reference to the original lease agreement, its date, property details, and brief context for the cancellation
3. Definitions: Key terms used in the agreement including 'Effective Date', 'Original Lease', 'Property', and 'Security Deposit'
4. Termination: Clear statement of mutual agreement to terminate the lease and the effective date of termination
5. Settlement of Outstanding Amounts: Provisions regarding any pending rent, utilities, or other charges up to the termination date
6. Security Deposit: Terms for the return or retention of security deposit, including any deductions for damages or outstanding payments
7. Property Handover: Requirements and procedure for returning the property to the landlord, including condition requirements
8. Mutual Release: Release of both parties from future obligations under the original lease agreement
9. Governing Law: Specification that Indonesian law governs the agreement
10. Execution: Signature blocks and execution requirements
1. Surviving Obligations: Used when certain obligations from the original lease should survive termination, such as confidentiality or indemnification provisions
2. Repairs and Restoration: Include when specific repairs or restoration work needs to be completed before property handover
3. Keys and Access Devices: Include when there are multiple sets of keys or access devices that need to be returned
4. Utilities Transfer: Include when utilities need to be transferred back to the landlord's name
5. Personal Property: Include when addressing the removal of tenant's personal property or abandoned items
6. Non-disparagement: Optional clause preventing parties from making negative statements about each other
7. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods
1. Schedule 1 - Property Inspection Report: Detailed report of the property's condition at the time of termination
2. Schedule 2 - Settlement Calculation: Detailed calculation of final settlement including rent, utilities, and security deposit
3. Schedule 3 - Original Lease Agreement: Copy of the original lease agreement being terminated
4. Schedule 4 - Handover Checklist: List of items to be checked and confirmed during property handover
5. Schedule 5 - Photo Documentation: Photographs of the property condition at termination
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