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Rent To Own Lease Agreement
"I need a Rent to Own Lease Agreement for a residential property in Jakarta, where the tenant will pay monthly rent of 15 million rupiah starting March 2025, with 20% of each payment going toward the final purchase price of 2.5 billion rupiah, and the purchase option must be exercised within 3 years."
1. Parties: Identification of the Owner/Lessor and Tenant/Potential Buyer, including complete legal names, addresses, and ID numbers
2. Background: Context of the agreement, including property details and parties' intention to enter into a rent-to-own arrangement
3. Definitions: Key terms used throughout the agreement, including Property, Lease Period, Purchase Option, Rent Payments, etc.
4. Property Details: Comprehensive description of the property, including address, certificate number, and specifications
5. Lease Terms: Duration of lease, monthly rental amount, payment terms, and allocation of rent towards purchase
6. Purchase Option: Terms of the purchase option, including final purchase price, credit for rental payments, and exercise period
7. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements during the lease period
8. Insurance and Taxes: Requirements for property insurance and responsibility for property taxes during lease period
9. Default and Termination: Circumstances constituting default, remedies, and termination procedures
10. Exercise of Purchase Option: Process and requirements for exercising the purchase option
11. Transfer of Ownership: Procedures and requirements for final property transfer upon exercise of purchase option
12. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters
13. Dispute Resolution: Procedures for resolving disputes, including mediation and court jurisdiction
14. Notices: Methods and addresses for formal communications between parties
15. Execution: Signature blocks and execution requirements
1. Property Management: Required when the property is part of a managed complex or apartment building, detailing management rules and fees
2. Subletting Prohibition: Include when subletting needs to be explicitly prohibited or regulated
3. Foreign Ownership Provisions: Required when either party is a foreign national, addressing compliance with Indonesian foreign ownership restrictions
4. Early Purchase Option: Terms for exercising the purchase option before the standard exercise date, if permitted
5. Property Modifications: Required when specific rules about property modifications need to be established
6. Death or Incapacity: Succession provisions in case of death or incapacity of either party
7. Guarantor: Required when a guarantor is involved in guaranteeing the tenant's obligations
8. Force Majeure: Detailed provisions for handling unforeseen circumstances affecting the agreement
1. Schedule A - Property Description: Detailed description of the property, including floor plans, boundaries, and included fixtures
2. Schedule B - Payment Schedule: Detailed breakdown of monthly payments, including portion allocated to purchase price
3. Schedule C - Property Condition Report: Documentation of property condition at commencement of lease
4. Schedule D - Maintenance Requirements: Detailed maintenance obligations and standards
5. Schedule E - Purchase Price Calculation: Formula and method for calculating final purchase price, including rental credits
6. Appendix 1 - Property Certificates: Copies of relevant property certificates and ownership documents
7. Appendix 2 - Required Insurance: Details of required insurance coverage and terms
8. Appendix 3 - Property Rules: Applicable building or complex rules and regulations
Authors
Real Estate
Property Development
Residential Housing
Commercial Property
Property Management
Legal Services
Financial Services
Property Investment
Construction
Urban Development
Legal
Real Estate
Property Management
Compliance
Risk Management
Operations
Finance
Asset Management
Business Development
Contract Administration
Real Estate Attorney
Property Manager
Real Estate Agent
Legal Counsel
Property Developer
Lease Administrator
Contract Manager
Real Estate Investment Manager
Housing Finance Specialist
Property Rights Specialist
Compliance Officer
Risk Management Officer
Real Estate Operations Manager
Asset Manager
Transaction Coordinator
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