The Lease Break Agreement is a crucial document used in Indonesian property law when both parties agree to terminate a lease agreement before its scheduled end date. This document is essential for properly documenting the early termination process, protecting both landlord and tenant interests, and ensuring compliance with Indonesian Civil Code (KUHPerdata) requirements. It typically includes specific details about the termination date, financial settlements, property condition requirements, and mutual releases from future obligations. The agreement is particularly important in commercial and residential contexts where early lease termination needs to be handled professionally and legally. The document should be drafted in accordance with Indonesian property regulations and may require registration or notification to relevant authorities depending on the lease type and jurisdiction requirements.
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1. Parties: Identification of the landlord/lessor and tenant/lessee with complete legal names and addresses
2. Background: Brief context about the existing lease agreement and the mutual intention to terminate it early
3. Definitions: Key terms used in the agreement including 'Premises', 'Original Lease', 'Termination Date', and 'Settlement Amount'
4. Termination Agreement: Core agreement to terminate the lease, specifying the exact termination date
5. Financial Settlement: Details of all financial matters including rent payments, security deposit return, and any early termination fees
6. Property Condition: Requirements for the condition in which the property must be returned
7. Key Return: Arrangements for returning keys and access devices
8. Release and Discharge: Mutual release from obligations under the original lease post-termination
9. Governing Law: Specification that Indonesian law governs the agreement
10. Execution: Signature blocks and execution details
1. Utilities Settlement: Used when there are outstanding utility bills to be addressed
2. Maintenance Works: Required when specific repair or maintenance work needs to be completed before vacating
3. Forwarding Address: Include when arrangements for future correspondence need to be documented
4. Third-Party Notifications: Used when there are requirements to notify building management, insurance companies, or other relevant parties
5. Personal Property: Include when addressing the removal of tenant's personal property or abandoned items
6. Inspection Schedule: When a specific property inspection process needs to be documented
1. Schedule 1 - Property Details: Detailed description of the leased premises
2. Schedule 2 - Financial Statement: Breakdown of all financial settlements including rent, deposits, and any adjustments
3. Schedule 3 - Condition Report: Current condition of the property and any damage or wear and tear to be addressed
4. Appendix A - Original Lease Reference: Copy or key details of the original lease agreement being terminated
5. Appendix B - Handover Checklist: Detailed checklist for property handover process
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Retail
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Student Housing
Relevant Teams
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Facilities Management
Asset Management
Operations
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Relevant Roles
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Property Administrator
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Tenant Relations Manager
Building Operations Manager
Housing Coordinator
Compliance Officer
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