The Termination Of Rental Lease Agreement is a crucial document used in Indonesian property law when parties wish to formally end their rental relationship. It is typically employed when either the landlord and tenant mutually agree to end the lease before its natural expiration, or when one party exercises their right to terminate according to the original lease terms. This document must comply with Indonesian Civil Code requirements and local property regulations, particularly Government Regulation No. 44 of 1994 regarding residential properties. It includes essential elements such as property details, termination date, final settlement terms, and property handover procedures. The agreement serves as legal evidence of the lease termination and helps prevent future disputes by clearly documenting all parties' obligations and rights during the termination process.
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1. Parties: Identification of the landlord and tenant, including their full legal names, addresses, and any relevant registration numbers
2. Background: Reference to the original lease agreement, including its date, property details, and current rental terms
3. Definitions: Key terms used in the agreement, including 'Termination Date', 'Property', 'Original Lease', and 'Final Settlement'
4. Termination Declaration: Clear statement of mutual agreement to terminate the lease, or unilateral termination notice as applicable
5. Effective Date of Termination: Specific date when the lease will terminate and tenant must vacate the property
6. Final Settlement Terms: Details of any outstanding rent, utility payments, or other financial obligations to be settled
7. Property Handover Process: Procedure for returning keys, inspecting property condition, and documenting any damage
8. Security Deposit Settlement: Terms for the return or withholding of security deposit, including deductions if applicable
9. Release of Obligations: Mutual release of future obligations under the original lease agreement
10. Governing Law: Confirmation that the agreement is governed by Indonesian law
11. Execution: Signature blocks for all parties and witness requirements
1. Early Termination Fee: Include when termination occurs before the original lease end date and penalties apply
2. Dispute Resolution: Include when parties want to specify specific dispute resolution procedures or arbitration requirements
3. Forwarding Address: Include when tenant needs to provide future contact information for deposit return or correspondence
4. Maintenance Requirements: Include when specific cleaning or repair requirements are needed before vacancy
5. Utilities Transfer: Include when there are specific requirements for transferring or terminating utility services
6. Abandoned Property: Include when there needs to be provisions for handling any property left behind by tenant
1. Property Condition Report: Detailed documentation of property condition at termination, including photographs
2. Settlement Statement: Itemized list of all financial settlements, including rent, deposits, and deductions
3. Original Lease Agreement: Copy of the original lease agreement being terminated
4. Utility Readings: Final meter readings for electricity, water, and other utilities
5. Handover Checklist: Checklist of items to be completed and verified during property handover
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