The Termination of Tenancy Agreement is a crucial legal document used in Indonesia when parties wish to formally end their landlord-tenant relationship. It is particularly important for ensuring a clear and legally compliant closure of rental arrangements, whether for residential or commercial properties. The document becomes necessary when either party initiates the termination of a lease, whether at the natural end of the term or through mutual agreement for early termination. Governed by Indonesian law, particularly the Civil Code (KUHPerdata) and housing regulations, it includes essential provisions for property handover, financial settlements, and mutual releases. This document helps prevent future disputes by clearly documenting the termination terms, property condition, and final settlement details, while ensuring compliance with local property laws and regulations.
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1. Parties: Details of the landlord/lessor and tenant/lessee, including full legal names, addresses, and any relevant registration numbers for companies
2. Background: Reference to the original tenancy agreement including its date, property address, and current rental terms
3. Definitions: Definitions of key terms used in the agreement, including 'Termination Date', 'Property', 'Original Agreement', etc.
4. Termination Declaration: Clear statement of the agreement to terminate the tenancy, specifying the effective termination date
5. Handover Requirements: Specific conditions for returning the property, including cleaning requirements and repair obligations
6. Security Deposit: Terms for the return of the security deposit, including deductions if applicable
7. Outstanding Payments: Provisions regarding settlement of any outstanding rent, utilities, or other charges
8. Release and Discharge: Mutual release from obligations under the original tenancy agreement post-termination
9. Governing Law: Confirmation that the agreement is governed by Indonesian law
10. Execution: Signature blocks and execution requirements for all parties
1. Early Termination Fee: Include when the termination occurs before the original end date and parties agree on a penalty
2. Forwarding Address: Include when the tenant needs to provide a forwarding address for future correspondence or deposit return
3. Property Inspection: Include when parties want to specify detailed inspection procedures and documentation requirements
4. Utilities Transfer: Include when there are specific requirements for transferring or terminating utility services
5. Keys and Access Devices: Include when there are multiple keys or access devices to be returned
6. Abandonment of Property: Include when there needs to be provisions for handling any tenant belongings left behind
1. Property Condition Report: Checklist and documentation of the property's condition at termination
2. Inventory List: List of furniture/fixtures to be checked during handover (if furnished property)
3. Payment Settlement Statement: Detailed breakdown of final payments, deposit deductions, and refunds
4. Handover Checklist: List of items to be completed/checked before final handover
5. Original Tenancy Agreement: Copy of the original tenancy agreement for reference
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