The LOI Rental Agreement is a crucial preliminary document used in Indonesian property transactions to establish the framework for a future rental arrangement. It serves as a bridge between initial discussions and the final rental agreement, typically used when parties have reached a general understanding but need to formalize their intentions before proceeding with detailed negotiations and due diligence. The document includes key commercial terms, timelines, and any binding preliminary obligations while complying with Indonesian property laws and regulations. This type of agreement is particularly important in commercial rentals where significant due diligence or board approvals may be required before finalizing the rental agreement.
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1. Parties: Full legal names and details of the prospective landlord and tenant
2. Background: Context of the proposed rental arrangement and purpose of the LOI
3. Definitions: Key terms used throughout the document
4. Property Details: Specific description and address of the property to be rented
5. Proposed Terms: Key commercial terms including proposed rental amount, duration, and payment terms
6. Due Diligence: Process and timeline for property inspection and document verification
7. Timeline: Proposed schedule for negotiation and execution of the final rental agreement
8. Binding Terms: Specific provisions that are intended to be legally binding (e.g., confidentiality, exclusivity)
9. Good Faith Commitment: Statement of intention to negotiate in good faith
10. Expiration: Validity period of the LOI
11. Governing Law: Confirmation that Indonesian law governs the LOI
12. Signatures: Execution block for all parties
1. Deposit Terms: Include when initial deposit or earnest money is to be paid during the LOI phase
2. Exclusivity Period: Include when the landlord agrees not to negotiate with other potential tenants for a specified period
3. Broker/Agent Details: Include when property agents or brokers are involved in the transaction
4. Conditions Precedent: Include when there are specific conditions that must be met before proceeding with the final agreement
5. Cost Allocation: Include when parties want to specify who bears the costs of due diligence and document preparation
6. Early Termination: Include when parties want to specify conditions for early termination of the LOI process
1. Property Description Schedule: Detailed description of the property including photos, floor plans, and specifications
2. Proposed Commercial Terms: Detailed breakdown of rent, service charges, and other financial terms
3. Due Diligence Checklist: List of documents and verifications required during the due diligence process
4. Timeline Schedule: Detailed timeline with key dates and milestones for the transaction
5. Required Permits: List of necessary permits and licenses required for the intended use of the property
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Retail
Commercial Office
Industrial
Hospitality
Education
Healthcare
Manufacturing
Logistics
Technology
Banking and Financial Services
Professional Services
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Finance
Procurement
Risk Management
Corporate Secretariat
Business Development
Property Management
Relevant Roles
Real Estate Manager
Property Manager
Legal Counsel
Corporate Lawyer
Facilities Manager
Operations Director
Chief Financial Officer
Business Development Manager
Procurement Manager
Expansion Manager
Real Estate Director
Commercial Director
General Counsel
Company Secretary
Risk Manager
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