The Property License Agreement serves as a crucial legal instrument in Indonesian property transactions, providing a framework for temporary property usage rights without transferring ownership. This document is essential when property owners wish to grant specific usage rights to another party while maintaining ownership and control over their property. It addresses key requirements under Indonesian law, including compliance with the Basic Agrarian Law, local property regulations, and licensing requirements. The agreement is commonly used for commercial, industrial, or specialized property arrangements, incorporating necessary provisions for property usage, maintenance, fees, and regulatory compliance. It differs from a lease agreement in its scope and legal implications under Indonesian law, particularly regarding property rights and registration requirements.
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1. Parties: Identification of the Licensor and Licensee, including full legal names, addresses, and registration details if companies
2. Background: Context of the agreement, including property ownership confirmation and purpose of the license
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Specific details of the license being granted, including scope and nature of permitted use
5. Property Details: Detailed description of the licensed property, including address and registration details
6. Term and Renewal: Duration of the license and any renewal provisions
7. License Fee: Amount, payment schedule, and method of payment for the license
8. Use of Property: Permitted and prohibited uses of the property
9. Maintenance and Repairs: Responsibilities for property maintenance and repairs
10. Insurance and Liability: Insurance requirements and allocation of risks
11. Termination: Grounds and procedure for termination of the license
12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
13. General Provisions: Standard contractual provisions including notices, amendments, and entire agreement
1. Utilities and Services: Include when utilities are not included in the license fee and need separate arrangements
2. Alterations and Improvements: Include when the licensee is permitted to make changes to the property
3. Sublicensing Rights: Include when sublicensing is permitted under specific conditions
4. Environmental Compliance: Include for properties where environmental regulations are significant
5. Security Deposit: Include when a security deposit is required
6. Force Majeure: Include when specific force majeure provisions are needed beyond standard provisions
7. Special Conditions: Include when there are property-specific requirements or restrictions
1. Schedule 1 - Property Description: Detailed description of the property including floor plans, boundaries, and included fixtures
2. Schedule 2 - Payment Schedule: Detailed breakdown of license fees, payment dates, and payment methods
3. Schedule 3 - Permitted Use: Detailed description of allowed activities and use restrictions
4. Schedule 4 - Condition Report: Initial condition of the property with photographs and descriptions
5. Schedule 5 - Maintenance Schedule: Detailed maintenance responsibilities and schedules
6. Appendix A - Required Licenses and Permits: List of necessary governmental permits and licenses
7. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts
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