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Lease Sale Agreement Template for Indonesia

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Key Requirements PROMPT example:

Lease Sale Agreement

"I need a Lease Sale Agreement for a commercial warehouse in Jakarta Industrial Park, with a 2-year lease period starting March 2025 and purchase option exercisable after 18 months, including specific provisions for heavy machinery installation and 24/7 operations."

Document background
The Lease Sale Agreement is a specialized legal instrument used in Indonesian property transactions where parties wish to combine a lease arrangement with a future sale commitment. This document is particularly useful when immediate purchase is not feasible or desired, but there is an intention to transfer ownership after a lease period. It includes detailed provisions for both the lease phase (including rental payments, maintenance obligations, and use restrictions) and the eventual sale (including purchase price, payment terms, and transfer conditions). The agreement must comply with Indonesian property law framework, including the Basic Agrarian Law (UU No. 5/1960) and relevant regulations on property rights transfer. It's commonly used in both commercial and residential property transactions, providing flexibility while ensuring legal protection for both parties under Indonesian jurisdiction.
Suggested Sections

1. Parties: Identification and details of the lessor/seller and lessee/buyer, including their legal status and authority to enter into the agreement

2. Background: Context of the transaction, including brief description of the property and the parties' intention to enter into a lease sale arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the property including location, boundaries, certificates, and relevant permits

5. Lease Terms: Duration of lease, rental payments, payment schedule, and conditions for lease period

6. Purchase Option: Terms and conditions for exercising the purchase option, including purchase price and mechanism for conversion from lease to sale

7. Payment Terms: Details of all payments including lease payments, purchase price, deposits, and payment methods

8. Rights and Obligations: Detailed responsibilities of both parties during the lease period and upon exercise of purchase option

9. Property Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements during the lease period

10. Insurance and Risk: Requirements for property insurance and allocation of risks

11. Default and Remedies: Events of default and corresponding remedies available to either party

12. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes

13. Notices: Process and requirements for formal communications between parties

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Foreign Investment Provisions: Required when either party is a foreign entity, addressing compliance with Indonesian foreign investment laws

2. Property Management: Included when the property is part of a managed complex or requires specific management arrangements

3. Utilities and Services: Detailed when the property includes specific utility arrangements or service provisions

4. Sublease Rights: Included when sublease rights are to be granted to the lessee

5. Environmental Compliance: Required for properties with specific environmental considerations or requirements

6. Force Majeure: Detailed provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters

7. Tax Provisions: Detailed tax arrangements when complex tax implications exist

8. Building Modifications: Required when the lessee is permitted to make modifications to the property

Suggested Schedules

1. Property Details Schedule: Detailed technical description of the property, including floor plans, boundaries, and certificates

2. Payment Schedule: Detailed breakdown of all payments including lease payments, purchase price installments, and payment dates

3. Condition Report: Detailed report on the condition of the property at the commencement of the lease

4. Permitted Use: Specific details of how the property may be used during the lease period

5. Required Insurance: Detailed insurance requirements including types of coverage and minimum amounts

6. Building Rules and Regulations: Applicable building rules and regulations if the property is part of a larger complex

7. Form of Transfer Deed: Template for the final transfer deed to be used when purchase option is exercised

8. Required Permits and Licenses: List of all required governmental permits and licenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions









































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