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Operating Agreement For Real Estate Investment LLC for Indonesia

Operating Agreement For Real Estate Investment LLC Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the operational framework for a Limited Liability Company (LLC) focused on real estate investment activities. The agreement outlines the rights, responsibilities, and relationships between members, management structure, capital contributions, profit distribution, and decision-making processes, while ensuring compliance with Indonesian investment regulations, property laws, and foreign ownership restrictions. It serves as the primary governing document for the company's internal affairs and business operations in the Indonesian real estate market.

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What is a Operating Agreement For Real Estate Investment LLC?

The Operating Agreement For Real Estate Investment LLC is a fundamental document required when establishing a real estate investment company in Indonesia. It is particularly crucial given Indonesia's specific regulatory requirements for both company formation and real estate investment. This document is essential when two or more parties wish to form an LLC for real estate investment purposes, whether they are domestic or foreign investors, and must comply with Law No. 40 of 2007 on Limited Liability Companies and Law No. 25 of 2007 on Investment. The agreement covers critical aspects such as capital structure, management rights, profit distribution, and operational procedures, while addressing specific considerations related to Indonesian property ownership laws and foreign investment restrictions. It serves as the primary reference point for resolving any disputes between members and guides the company's ongoing operations in the Indonesian real estate market.

What sections should be included in a Operating Agreement For Real Estate Investment LLC?

1. Parties: Identification of all members/parties forming the LLC

2. Background: Context of the LLC formation and its intended purpose in real estate investment

3. Definitions: Key terms used throughout the agreement

4. Formation and Name: Legal establishment of the LLC and its official name

5. Principal Place of Business: Registered address and location of operations

6. Purpose and Powers: Scope of real estate investment activities and general powers of the LLC

7. Term: Duration of the LLC's existence

8. Capital Contributions: Initial and additional capital requirements from members

9. Membership Interests: Allocation of ownership interests and voting rights

10. Management Structure: Governance framework and management responsibilities

11. Meetings and Voting: Procedures for member meetings and decision-making processes

12. Distributions and Allocations: Profit sharing and distribution policies

13. Books, Records and Accounting: Requirements for financial record-keeping and reporting

14. Transfer Restrictions: Limitations on transferring membership interests

15. Dissolution and Liquidation: Procedures for winding up the LLC

16. Representations and Warranties: Members' confirmations regarding their capacity and authority

17. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

What sections are optional to include in a Operating Agreement For Real Estate Investment LLC?

1. Foreign Investment Provisions: Required if any members are non-Indonesian entities or individuals

2. Real Estate Asset Management: Detailed procedures for managing real estate assets if the LLC will directly manage properties

3. Investment Committee: Structure and powers of an investment committee if required for larger operations

4. Tag-Along and Drag-Along Rights: Optional provisions for exit mechanisms in larger multi-member LLCs

5. Property Development Provisions: Required if the LLC will engage in property development activities

6. Financing Arrangements: Required if the LLC anticipates taking on debt or external financing

7. Environmental Compliance: Required for properties with environmental considerations

8. Employee Matters: Required if the LLC will have direct employees

9. Insurance Requirements: Detailed insurance provisions for property management operations

What schedules should be included in a Operating Agreement For Real Estate Investment LLC?

1. Schedule A - Member Information: Details of all members including contact information and initial capital contributions

2. Schedule B - Initial Properties: List and details of any properties already identified for investment

3. Schedule C - Management Structure: Detailed organizational chart and management responsibilities

4. Schedule D - Investment Criteria: Specific criteria for property investments and target markets

5. Schedule E - Fee Structure: Details of management fees, performance fees, and other compensation

6. Appendix 1 - Financial Reporting Templates: Standard formats for financial reporting

7. Appendix 2 - Property Management Guidelines: Standard operating procedures for property management

8. Appendix 3 - Compliance Checklist: Regulatory compliance requirements under Indonesian law

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

Document Type

Operating Agreement

Cost

Free to use
Relevant legal definitions







































































Clauses


















































Relevant Industries

Real Estate

Property Development

Investment Management

Commercial Property

Residential Property

Property Management

Real Estate Investment Trusts

Construction

Real Estate Finance

Property Technology

Relevant Teams

Legal

Corporate Governance

Real Estate Operations

Investment

Finance

Compliance

Risk Management

Property Management

Business Development

Executive Leadership

Relevant Roles

CEO

Managing Director

Real Estate Investment Manager

Property Development Director

Legal Counsel

Corporate Secretary

Chief Financial Officer

Investment Analyst

Asset Manager

Compliance Officer

Property Manager

Business Development Director

Risk Manager

Board Member

Operations Director

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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