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Commercial Lease Assignment for Indonesia

Commercial Lease Assignment Template for Indonesia

This document facilitates the legal transfer of commercial lease rights and obligations from an existing tenant to a new tenant under Indonesian law. It encompasses all necessary provisions required by Indonesian property and contract law, including landlord consent, transfer terms, and ongoing obligations. The agreement ensures compliance with the Indonesian Civil Code (KUH Perdata) and relevant property regulations while protecting the interests of all parties involved. It includes specific provisions for security deposits, registration requirements, and any special conditions imposed by the landlord, all structured to meet local legal requirements and business practices.

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Commercial Lease Assignment

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What is a Commercial Lease Assignment?

The Commercial Lease Assignment is a crucial document used when a tenant wishes to transfer their lease obligations to another party in Indonesia. This document is particularly relevant when businesses need to exit a lease early, during business acquisitions, or in corporate restructuring situations. It must comply with Indonesian property law, including the Basic Agrarian Law and relevant commercial regulations. The agreement covers essential elements such as property details, existing lease terms, financial obligations, and necessary governmental approvals. It requires careful consideration of local property regulations, registration requirements, and often needs to be executed before a notary public. The document is designed to protect all parties' interests while ensuring a smooth transition of lease rights and obligations.

What sections should be included in a Commercial Lease Assignment?

1. Parties: Identifies the current tenant (Assignor), the new tenant (Assignee), and the Landlord

2. Background: Details of the existing lease, property description, and reason for assignment

3. Definitions: Defines key terms used throughout the agreement including Property, Lease, Assignment Date, etc.

4. Assignment: Core provisions detailing the transfer of lease rights and obligations from Assignor to Assignee

5. Consent of Landlord: Formal statement of the landlord's consent to the assignment and any conditions attached

6. Effective Date: Specifies when the assignment takes effect and any conditions precedent

7. Assignor's Covenants: Warranties and representations by the existing tenant regarding the lease status

8. Assignee's Covenants: New tenant's commitments to comply with lease terms and obligations

9. Rent and Security Deposit: Arrangements for handling rent payments and transfer of security deposits

10. Registration and Costs: Responsibilities for registering the assignment and paying associated costs

11. Governing Law: Confirms Indonesian law governs the agreement and relevant jurisdiction

12. Execution: Formal signing section complying with Indonesian execution requirements

What sections are optional to include in a Commercial Lease Assignment?

1. Guarantor Provisions: Required when there is a guarantor for the Assignee's obligations

2. Outstanding Violations: Include when there are existing building or lease violations that need to be addressed

3. Break Clause: Optional provision allowing early termination under specific circumstances

4. Broker Arrangements: Include if property brokers are involved in the assignment transaction

5. Existing Alterations: Required when there are unauthorized alterations or pending restoration obligations

6. Foreign Investment Provisions: Include when the Assignee is a foreign entity, addressing compliance with Indonesian investment laws

What schedules should be included in a Commercial Lease Assignment?

1. Schedule 1 - Property Details: Detailed description of the leased property including floor plans and specifications

2. Schedule 2 - Existing Lease: Copy or summary of the original lease agreement and any variations

3. Schedule 3 - Conditions of Assignment: Specific conditions imposed by the Landlord for consenting to the assignment

4. Schedule 4 - Outstanding Rent: Statement of any rent arrears or other financial obligations

5. Schedule 5 - Inventory: List of any fixtures, fittings or equipment included in the assignment

6. Appendix A - Required Permits: Copies of all relevant business and property use permits

7. Appendix B - Registration Requirements: Checklist of documents required for registering the assignment with relevant authorities

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Real Estate

Retail

Manufacturing

Hospitality

Office Space

Warehousing & Logistics

Industrial

Food & Beverage

Healthcare

Education

Technology

Professional Services

Relevant Teams

Legal

Real Estate

Operations

Finance

Compliance

Facilities Management

Business Development

Property Management

Corporate Services

Risk Management

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Business Development Manager

Operations Director

Facilities Manager

Commercial Director

Chief Financial Officer

Asset Manager

Compliance Officer

Contract Administrator

Corporate Real Estate Manager

Expansion Manager

Leasing 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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