The Lease Contract Agreement serves as a fundamental legal instrument in Indonesian property transactions, establishing the formal relationship between property owners and tenants. This document is essential when any party wishes to lease real property in Indonesia, whether for residential, commercial, or industrial purposes. It must comply with Indonesian Civil Code (KUHPerdata), Basic Agrarian Law, and relevant regional regulations. The agreement typically includes detailed provisions on rent payment, security deposits, maintenance obligations, and use restrictions, while addressing specific Indonesian legal requirements such as language requirements and permitted lease durations. It's particularly important given Indonesia's unique property ownership and usage rights system, especially considering restrictions on foreign ownership and specific regulations regarding property utilization.
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1. Parties: Identification of the lessor and lessee with complete legal names, addresses, and if applicable, company registration details
2. Background: Context of the lease arrangement and brief description of the property
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Details: Detailed description of the leased property including address, boundaries, and certificate details
5. Lease Term: Duration of the lease, commencement date, and end date
6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences
7. Security Deposit: Amount, payment terms, conditions for return, and permitted deductions
8. Use of Property: Permitted use of the property and any restrictions
9. Maintenance and Repairs: Responsibilities of each party for maintenance, repairs, and improvements
10. Utilities and Services: Responsibility for utility payments and essential services
11. Insurance: Required insurance coverage and responsibilities of each party
12. Default and Termination: Events of default, termination rights, and consequences
13. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
14. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue
15. Notices: Method and addresses for formal communications between parties
16. Execution: Signature blocks and execution requirements
1. Subletting and Assignment: Terms for subletting or assigning the lease - include for commercial properties or when specifically allowed
2. Fit-out Works: Regulations for tenant improvements and modifications - relevant for commercial or retail leases
3. Operating Hours: Specified hours of operation - include for commercial properties in building complexes
4. Common Areas: Rights and obligations regarding shared facilities - include for properties in multi-tenant buildings
5. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID
6. Environmental Compliance: Environmental obligations - include for industrial or commercial properties
7. Building Rules: Specific building regulations - include for properties in managed buildings
8. Option to Renew: Terms for lease renewal - include when offering renewal rights
9. Break Clause: Early termination provisions - include when agreed by parties
1. Property Floor Plan: Detailed plans showing the leased area and measurements
2. Inventory List: List of fixtures, fittings, and furniture included in the lease
3. Condition Report: Detailed description of property condition at commencement
4. Payment Schedule: Detailed breakdown of rent, service charges, and other payments
5. Building Rules and Regulations: Specific rules applicable to the property or building complex
6. Fit-out Guidelines: Technical specifications for permitted alterations and improvements
7. Service Level Agreement: Details of services provided by lessor, if any
8. Required Permits: Copies of relevant permits and certificates
9. Handover Protocol: Procedures for property handover at start and end of lease
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Retail
Commercial Office
Industrial
Hospitality
Healthcare
Education
Manufacturing
Warehousing
Technology
Banking and Finance
Food and Beverage
Entertainment
Relevant Teams
Legal
Operations
Finance
Facilities Management
Real Estate
Administration
Compliance
Risk Management
Property Management
Asset Management
Business Development
Procurement
Relevant Roles
Property Manager
Facility Manager
Real Estate Manager
Legal Counsel
Corporate Lawyer
Operations Manager
Chief Financial Officer
Business Development Manager
Administrative Manager
Compliance Officer
Real Estate Agent
Property Administrator
Asset Manager
Branch Manager
Regional Manager
Contract Administrator
Risk Manager
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