The Termination of Rental agreement is a crucial legal document used in Indonesia when parties mutually agree to end their rental relationship before or at the end of the lease term. It is designed to comply with Indonesian Civil Code (KUHPerdata) requirements and local property regulations, providing a clear framework for the termination process. This document is essential for both residential and commercial properties, protecting both landlord and tenant interests by clearly defining the termination date, handover procedures, financial settlements, and mutual obligations. It should be used whenever parties agree to terminate their rental agreement to ensure a smooth transition and prevent future disputes. The document typically includes provisions for property inspection, utility settlements, security deposit return, and release of future obligations, while accommodating specific requirements of different property types and local regulations.
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1. Parties: Identification of the landlord and tenant, including their full legal names, addresses, and any registration numbers for companies
2. Background: Reference to the original rental agreement, its date, and basic terms including property description
3. Definitions: Definition of key terms used in the termination agreement
4. Termination Date: Clear statement of when the rental agreement will terminate
5. Mutual Agreement: Statement that both parties agree to terminate the rental agreement
6. Outstanding Payments: Details of any rent, utilities, or other charges due up to the termination date
7. Security Deposit: Provisions for the return or deduction of the security deposit
8. Property Handover: Requirements and process for returning the property to the landlord
9. Final Inspection: Terms for conducting the final property inspection
10. Release of Obligations: Mutual release of future obligations under the rental agreement
11. Governing Law: Confirmation that Indonesian law governs the agreement
12. Execution: Signature blocks and execution requirements
1. Dispute Resolution: Include when there are existing disputes or potential claims between the parties
2. Utilities Transfer: Include for properties where utilities need to be transferred or cancelled
3. Renovation Requirements: Include when specific repairs or renovations are required before handover
4. Third Party Notifications: Include when there are requirements to notify building management, local authorities, or other third parties
5. Insurance Matters: Include when there are specific insurance policies that need to be cancelled or maintained
6. Property Modifications: Include when the tenant has made modifications that need to be addressed
7. Commercial Licenses: Include for commercial properties where business licenses or permits are involved
1. Schedule 1 - Property Inventory: Detailed list of property condition and inventory at termination
2. Schedule 2 - Payment Settlement: Breakdown of final payments, including any pro-rated rent and utilities
3. Schedule 3 - Handover Checklist: Checklist of items to be completed before and during property handover
4. Appendix A - Original Rental Agreement: Copy of the original rental agreement being terminated
5. Appendix B - Property Photographs: Documentation of property condition at termination
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