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Real Estate Operating Agreement Template for Indonesia

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Key Requirements PROMPT example:

Real Estate Operating Agreement

"I need a Real Estate Operating Agreement for a newly constructed shopping mall in Jakarta, Indonesia, where we'll appoint an international property management company to handle all operations starting March 2025, with specific provisions for retail tenant management and revenue sharing."

Document background
The Real Estate Operating Agreement serves as a critical document in Indonesian commercial property management, establishing the legal and operational framework between property owners and professional operators. This agreement is typically used when property owners seek to delegate the day-to-day management and operation of their real estate assets to specialized management companies while retaining ownership rights. The document encompasses crucial elements required under Indonesian law, including compliance with Basic Agrarian Law, Building Regulations, and local property management requirements. It details operational standards, financial arrangements, maintenance responsibilities, and reporting obligations while addressing specific Indonesian regulatory requirements for property management and foreign investment restrictions where applicable. The agreement is particularly relevant for commercial properties, shopping centers, office buildings, and mixed-use developments where professional management is essential for optimal asset performance.
Suggested Sections

1. Parties: Identification of the property owner and operator, including their complete legal names, addresses, and registration details

2. Background: Context of the agreement, property details, and purpose of the operating arrangement

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including property-specific and operational terms

4. Appointment and Term: Formal appointment of operator, duration of agreement, and renewal terms

5. Operator's Rights and Obligations: Detailed responsibilities of the operator in managing and operating the property

6. Owner's Rights and Obligations: Responsibilities and obligations of the property owner

7. Operating Standards: Required standards of operation, including compliance with local regulations and industry standards

8. Financial Terms: Fee structure, payment terms, operating expenses, and financial reporting requirements

9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements

10. Insurance and Liability: Required insurance coverage and allocation of risks between parties

11. Termination: Grounds for termination, notice requirements, and consequences of termination

12. Handover Provisions: Procedures for property handover at termination or expiry

13. Governing Law and Dispute Resolution: Applicable Indonesian law and dispute resolution mechanisms

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Employee Matters: Include when operator will manage property staff directly, covering employment terms and transitions

2. Environmental Compliance: Include for properties with significant environmental impact or requirements

3. Marketing and Branding: Include when operator has specific marketing responsibilities or brand standards

4. FF&E Management: Include for properties requiring significant furniture, fixtures, and equipment management

5. Third Party Contracts: Include when operator will manage existing vendor relationships or establish new ones

6. Development or Renovation: Include if property requires immediate renovation or has planned development phases

7. Force Majeure: Detailed force majeure provisions beyond standard clause, particularly relevant post-COVID

8. Intellectual Property: Include when either party's IP will be used in property operations

Suggested Schedules

1. Property Description: Detailed description of the property including land certificates, buildings, and facilities

2. Operating Standards and KPIs: Specific performance metrics and operating standards for the property

3. Fee Structure: Detailed breakdown of all fees, including base fees, incentive fees, and expense categories

4. Initial Budget: First-year operating budget and capital expenditure plan

5. Handover Inventory: Detailed inventory of all assets, equipment, and documents to be managed

6. Required Insurance: Specific insurance types and coverage amounts required

7. Required Licenses and Permits: List of necessary operational licenses and permits under Indonesian law

8. Existing Contracts: Schedule of existing service contracts, leases, or agreements affecting operations

9. Emergency Procedures: Required procedures for various emergency scenarios

10. Reporting Templates: Standard formats for required operational and financial reports

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





















































Clauses









































Relevant Industries

Commercial Real Estate

Retail

Office Space

Shopping Centers

Industrial Properties

Hospitality

Mixed-Use Developments

Logistics and Warehousing

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Operations

Asset Management

Property Management

Facility Management

Finance

Compliance

Risk Management

Business Development

Investment

Real Estate

Relevant Roles

Property Manager

Facility Manager

Asset Manager

Real Estate Director

Operations Manager

Legal Counsel

Chief Operating Officer

Investment Manager

Development Manager

Commercial Director

Compliance Officer

Finance Director

Regional Property Manager

Head of Real Estate

Portfolio Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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