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Letter Of Intent For Lease Agreement Template for Indonesia

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Letter Of Intent For Lease Agreement

"I need a Letter of Intent for Lease Agreement for a retail space in Jakarta's Central Business District, where my technology company intends to open a flagship store starting March 2025, with the LOI to include provisions for fit-out period and signage rights."

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What is a Letter Of Intent For Lease Agreement?

A Letter of Intent for Lease Agreement is commonly used in Indonesian business practice as a preliminary step before entering into a formal lease agreement. This document is particularly important in the Indonesian context where property transactions often involve complex regulatory requirements and multiple stakeholders. It serves to memorialize the basic terms and conditions agreed upon between parties, typically including proposed rental rates, lease duration, and key commercial terms. While primarily non-binding, certain provisions such as confidentiality and exclusivity can be made legally binding under Indonesian law. The document helps manage expectations and provides a clear roadmap for lease negotiations, especially important when dealing with commercial properties or when foreign entities are involved, as additional regulatory considerations may apply under Indonesian investment laws.

What sections should be included in a Letter Of Intent For Lease Agreement?

1. Date and Parties: Full names and details of the prospective landlord and tenant, including their registered addresses and company registration numbers if applicable

2. Background/Recitals: Brief context explaining the parties' intentions to enter into a lease agreement and the purpose of this LOI

3. Definitions: Key terms used throughout the document that require clear definition

4. Property Details: Specific description and address of the property to be leased, including its size and any relevant features

5. Key Commercial Terms: Essential lease terms including proposed rent, lease duration, and payment terms

6. Timeline: Proposed timeline for lease negotiation, documentation, and commencement

7. Conditions Precedent: Any conditions that must be satisfied before proceeding with the final lease agreement

8. Binding/Non-binding Provisions: Clear statement of which provisions are intended to be legally binding and which are not

9. Confidentiality: Terms regarding the confidential treatment of negotiations and shared information

10. Exclusivity: Period during which the landlord will not negotiate with other potential tenants

11. Governing Law: Statement that the LOI is governed by Indonesian law

12. Signatures: Execution block for both parties

What sections are optional to include in a Letter Of Intent For Lease Agreement?

1. Due Diligence: Terms regarding the tenant's right to conduct property inspections and review documentation - include when significant due diligence is required

2. Deposit Terms: Details of any initial deposit or earnest money - include when early commitment payments are required

3. Broker/Agent Details: Information about any involved real estate brokers or agents - include when third-party agents are involved

4. Break Clause: Conditions under which either party can terminate negotiations - include for complex or long-term negotiations

5. Cost Allocation: How costs related to the negotiation and documentation will be shared - include when significant costs are anticipated

What schedules should be included in a Letter Of Intent For Lease Agreement?

1. Property Plan: Floor plan or site plan of the property to be leased

2. Initial Terms Sheet: Summary of key commercial terms agreed in principle

3. Due Diligence Requirements: List of documents and information to be provided for due diligence

4. Timeline Schedule: Detailed timeline for negotiation, documentation, and completion phases

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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Relevant Industries

Real Estate

Retail

Commercial Office

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Hospitality & Tourism

Healthcare

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Technology & Data Centers

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Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Procurement

Business Development

Asset Management

Property Management

Compliance

Risk Management

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Business Development Manager

Operations Director

Chief Financial Officer

Commercial Director

Procurement Manager

Real Estate Agent

Leasing Manager

Asset Manager

Property Developer

Expansion Manager

Regional Manager

Industries







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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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