The Early Lease Termination Agreement is essential when parties to an existing lease agreement in Indonesia mutually agree to end their lease arrangement before the originally scheduled termination date. This document becomes necessary in various situations, such as when tenants need to relocate unexpectedly, when landlords require the property for other purposes, or when both parties agree to modified arrangements. The agreement must comply with Indonesian property law, particularly the Civil Code (KUHPerdata) and local property regulations. It typically includes detailed provisions for the termination date, financial settlements, property handover procedures, and mutual releases. The document serves to protect both parties' interests and prevent future disputes by clearly documenting the terms of the early termination.
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1. Parties: Identification of the Landlord and Tenant, including their complete legal names, addresses, and any relevant registration numbers
2. Background: Brief recital of the original lease agreement details and the parties' intention to terminate early
3. Definitions: Definitions of key terms used throughout the agreement
4. Termination Date: Specific date when the lease will terminate and the tenant will vacate the property
5. Mutual Agreement to Terminate: Express agreement of both parties to terminate the lease early
6. Financial Settlement: Details of any payments, refunds, or adjustments including security deposit return and outstanding rent
7. Property Handover: Process and requirements for returning the property to the landlord
8. Release of Obligations: Mutual release of future obligations under the original lease
9. Governing Law: Confirmation that the agreement is governed by Indonesian law
10. Execution: Signature blocks and execution requirements
1. Outstanding Utilities: Used when there are utility bills to be settled or transferred
2. Property Damage: Include when there are specific agreements about repair or compensation for property damage
3. Forwarding Address: When parties need to specify future contact details for post-termination matters
4. Third-Party Rights: Include when there are guarantors or other third parties involved in the original lease
5. Tax Provisions: Required when there are specific tax implications to be addressed
6. Confidentiality: Include when parties wish to keep the terms of the termination confidential
1. Schedule 1 - Original Lease Agreement: Copy or key details of the original lease agreement being terminated
2. Schedule 2 - Property Inventory: Current condition report and inventory list of the property
3. Schedule 3 - Financial Statement: Detailed breakdown of all financial settlements, including security deposit calculations
4. Schedule 4 - Handover Checklist: List of items to be checked and completed during the property handover
5. Schedule 5 - Outstanding Payments: List of any pending payments or adjustments to be made
6. Appendix A - Property Photographs: Current dated photographs documenting the property's condition
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