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Pre Lease Agreement for Indonesia

Pre Lease Agreement Template for Indonesia

A Pre Lease Agreement under Indonesian law is a preliminary contract that establishes the terms and conditions under which parties intend to enter into a formal lease agreement. This document, governed by the Indonesian Civil Code and relevant property regulations, outlines the rights and obligations of both parties during the pre-lease period, including due diligence requirements, conditions precedent, and key commercial terms of the proposed final lease. It provides legal protection for both landlord and tenant while necessary preparations and verifications are completed before the main lease execution.

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What is a Pre Lease Agreement?

The Pre Lease Agreement serves as a crucial preliminary document in Indonesian property transactions, typically used when parties have agreed in principle to a lease but require time for due diligence, property preparations, or fulfillment of certain conditions before executing the main lease agreement. It is particularly relevant in commercial and industrial leasing where significant preparation or verification is needed. The document, governed by Indonesian law including the Civil Code and property regulations, typically includes provisions for exclusivity, property inspection rights, condition precedents, and basic terms of the proposed final lease. This agreement is essential for protecting both parties' interests during the interim period and ensuring smooth progression toward the final lease execution.

What sections should be included in a Pre Lease Agreement?

1. Parties: Identification of the prospective landlord and tenant, including complete legal names, addresses, and registration numbers for companies

2. Background: Context of the agreement, including property details and parties' intentions to enter into a formal lease

3. Definitions: Key terms used throughout the agreement, including Property, Lease Terms, Commencement Date, etc.

4. Property Details: Specific description of the property including address, size, and permitted use

5. Lease Terms Overview: Summary of key terms for the proposed main lease including duration, rent, and basic obligations

6. Due Diligence Period: Timeline and process for tenant's inspection and verification of the property

7. Conditions Precedent: Conditions that must be satisfied before proceeding to the main lease

8. Security Deposit: Details of any initial deposit required and conditions for its use or return

9. Exclusivity: Landlord's commitment not to negotiate with other potential tenants during the pre-lease period

10. Costs and Expenses: Allocation of costs related to the pre-lease process and documentation

11. Termination: Circumstances under which either party can terminate the pre-lease agreement

12. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction details

13. Execution: Formal signing section complying with Indonesian legal requirements

What sections are optional to include in a Pre Lease Agreement?

1. Works and Modifications: Details of any agreed modifications or fit-out works to be completed before the main lease, used when property requires adaptation for tenant

2. Environmental Conditions: Specific provisions regarding environmental assessments and requirements, used for industrial or sensitive properties

3. Broker Provisions: Terms relating to broker involvement and fees, included when property agents are involved

4. Regulatory Approvals: Specific provisions about obtaining necessary permits and licenses, used for regulated industries or specific property types

5. Parent Company Guarantee: Requirements for parent company support, used when tenant is a subsidiary or has limited financial history

6. Multiple Property Provisions: Additional terms for cases involving multiple properties or staged leasing arrangements

What schedules should be included in a Pre Lease Agreement?

1. Property Plans: Detailed plans and drawings of the property including boundaries and measurements

2. Proposed Lease Terms: Detailed commercial terms for the main lease agreement

3. Due Diligence Requirements: Checklist and requirements for property inspection and verification

4. Form of Main Lease: Draft or outline of the proposed main lease agreement

5. Condition Report: Current condition of the property including photographs and descriptions

6. Required Permits: List of necessary permits and licenses required for property use

7. Timeline: Detailed schedule of key dates and deadlines for the pre-lease period

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

Lease Agreement

Cost

Free to use
Relevant legal definitions


































Clauses






























Relevant Industries

Real Estate

Retail

Commercial Office

Industrial Manufacturing

Logistics and Warehousing

Hospitality

Healthcare

Education

Technology

Financial Services

Food and Beverage

Professional Services

Relevant Teams

Legal

Real Estate

Operations

Finance

Facilities Management

Risk Management

Procurement

Business Development

Property Management

Corporate Services

Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Operations Director

Chief Financial Officer

Business Development Manager

Project Manager

Procurement Manager

Real Estate Director

Asset Manager

Leasing Manager

Commercial Director

Risk 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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