The Lot Lease Agreement is a crucial document in Indonesian real estate transactions, used when a landowner grants temporary rights to use a plot of land to another party. This agreement must comply with Indonesia's complex land law system, particularly the Basic Agrarian Law and related regulations. It's commonly used for commercial, industrial, or agricultural purposes, and can involve both domestic and foreign parties (subject to foreign investment restrictions). The document typically includes detailed property descriptions, lease terms, payment schedules, and use restrictions, while accounting for both national and local regulations. The agreement's structure must address the specific requirements of Indonesian contract law and property rights, making it essential for various business operations requiring land use rights.
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1. Parties: Identification of the lessor and lessee with complete legal names, addresses, and if applicable, company registration details
2. Background: Context of the lease arrangement, brief description of the lot, and purpose of the agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the leased lot including certificate number, boundaries, size, and location
5. Lease Term: Duration of the lease, commencement date, and any renewal options
6. Rent and Payment Terms: Amount of rent, payment schedule, method of payment, and late payment consequences
7. Security Deposit: Amount, terms of holding, and conditions for return of the security deposit
8. Permitted Use: Specified allowed uses of the lot in accordance with zoning regulations and agreed terms
9. Maintenance and Repairs: Responsibilities of each party regarding maintenance and repairs of the lot
10. Insurance and Liability: Required insurance coverage and allocation of risks between parties
11. Assignment and Subletting: Terms and conditions for transferring or subletting the lease
12. Termination: Grounds for termination and the process to be followed
13. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
14. Dispute Resolution: Process for resolving disputes, including mediation or arbitration provisions
15. Notices: Method and addresses for formal communications between parties
16. Execution: Signature blocks and execution requirements
1. Development Rights: Include when the lease allows for development or construction on the lot
2. Environmental Compliance: Include when the lot is subject to specific environmental regulations or concerns
3. Foreign Investment Provisions: Include when either party is a foreign entity, addressing specific requirements under Indonesian investment law
4. Right of First Refusal: Include when parties agree to give the lessee priority rights for purchasing the lot
5. Force Majeure: Include when parties want specific provisions for handling unforeseen circumstances
6. Utilities and Services: Include when the lease involves responsibility for utilities or services
7. Local Authority Compliance: Include when specific local authority requirements need to be addressed
8. Tax Obligations: Include when there are specific tax arrangements or obligations to be detailed
1. Land Title Certificate: Copy of the land certificate and official property documentation
2. Site Plan: Detailed plan showing the boundaries and location of the leased lot
3. Payment Schedule: Detailed breakdown of payment amounts and due dates
4. Permitted Use Details: Specific details of permitted activities and development restrictions
5. Condition Report: Documentation of the lot's condition at the start of the lease
6. Required Permits: Copies of relevant permits and licenses
7. Insurance Requirements: Detailed insurance specifications and requirements
8. Maintenance Schedule: Schedule of required maintenance activities and responsibilities
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Agriculture
Industrial Manufacturing
Retail
Hospitality
Logistics
Warehousing
Commercial Development
Residential Development
Mining
Energy
Infrastructure
Relevant Teams
Legal
Real Estate
Property Management
Operations
Facilities
Compliance
Business Development
Asset Management
Project Management
Investment
Administration
Relevant Roles
Real Estate Manager
Property Development Manager
Legal Counsel
Land Acquisition Manager
Facilities Manager
Commercial Director
Operations Manager
Asset Manager
Investment Manager
Compliance Officer
Property Administrator
Business Development Manager
Site Manager
Project Manager
Corporate Secretary
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