The Deed of Surrender of Tenancy is a crucial legal instrument in Indonesian property law, used when both landlord and tenant mutually agree to terminate a lease agreement before its scheduled end date. This document is essential in situations where early termination is desired by both parties and needs to be properly documented to ensure legal certainty. The deed must comply with the Indonesian Civil Code (KUHPerdata) and relevant property regulations, requiring proper execution before a notary public. It typically includes detailed provisions about the condition of the property, final settlements, and the release of both parties from their ongoing obligations. Common scenarios for using this document include business relocations, property sales, or when tenants need to exit their lease early with the landlord's agreement. The document protects both parties by clearly documenting the terms of surrender and ensuring all financial and legal obligations are properly addressed under Indonesian law.
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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: Recitals explaining the existing lease agreement details, property information, and the parties' intention to surrender the lease
3. Definitions: Definitions of key terms used throughout the deed, including 'Property', 'Lease', 'Surrender Date', and other relevant terms
4. Agreement to Surrender: The core agreement where the tenant agrees to surrender and the landlord agrees to accept the surrender of the lease
5. Surrender Date: Specification of the exact date and time when the surrender takes effect
6. Tenant's Obligations: Requirements for the tenant including returning keys, removing possessions, and leaving the property in the required condition
7. Release of Obligations: Mutual release of parties from their obligations under the original lease, subject to any surviving terms
8. Property Condition: Statement about the condition in which the property must be returned and any inspection requirements
9. Settlement of Accounts: Details of final payments, including rent, utilities, and any security deposit return
10. Governing Law: Confirmation that the deed is governed by Indonesian law
11. Execution: Formal execution clause meeting Indonesian legal requirements for deeds
1. Surviving Obligations: Used when certain obligations from the original lease are intended to survive the surrender
2. Third Party Rights: Include when there are sub-tenants or other third parties with rights that need to be addressed
3. Dilapidations Settlement: Include when there is a specific settlement for repair or restoration works
4. Tax Provisions: Include when specific tax implications need to be addressed
5. Confidentiality: Include when parties wish to keep the terms of the surrender confidential
6. Dispute Resolution: Include when specific dispute resolution procedures are required beyond standard court jurisdiction
1. Schedule 1 - The Property: Detailed description of the property including its address and any relevant plans
2. Schedule 2 - The Original Lease: Details of the original lease agreement including its date and any variations
3. Schedule 3 - Inventory of Condition: Current condition report of the property and any agreed defects or damage
4. Schedule 4 - Settlement Figures: Detailed breakdown of all financial settlements between the parties
5. Appendix A - Property Handover Checklist: Checklist of items to be completed/verified during property handover
6. Appendix B - Required Repairs: List of any repairs or works required before or after surrender
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