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Sale And Leaseback Agreement for Indonesia

Sale And Leaseback Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that facilitates a transaction where one party sells a property to another party and simultaneously enters into a lease agreement to continue using the same property. The document combines elements of both sale and lease arrangements, complying with Indonesian Civil Code requirements, Basic Agrarian Law, and relevant property regulations. It addresses crucial aspects such as property transfer, lease terms, payment structures, maintenance obligations, and includes specific provisions required under Indonesian property and tax laws.

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What is a Sale And Leaseback Agreement?

The Sale And Leaseback Agreement is a strategic financial instrument used in Indonesia when a property owner wishes to unlock the capital tied up in their real estate assets while retaining operational use of the property. This document type is particularly valuable for businesses seeking to improve their balance sheet structure or requiring significant capital injection while maintaining their operational capabilities. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUH Perdata), Basic Agrarian Law, and relevant tax regulations. It typically includes detailed provisions for both the sale transaction and the subsequent lease arrangement, covering aspects such as property transfer, lease terms, maintenance responsibilities, insurance requirements, and termination conditions. The document is commonly used in commercial real estate transactions, corporate restructuring, and strategic financial planning in the Indonesian market.

What sections should be included in a Sale And Leaseback Agreement?

1. Parties: Identification of the Seller/Future Lessee and Buyer/Future Lessor with complete legal details

2. Background: Context of the transaction, including property overview and commercial intent of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale Provisions: Terms and conditions of the sale, including purchase price, payment terms, and transfer mechanics

5. Property Title and Transfer: Provisions regarding transfer of title, warranties of ownership, and required registrations

6. Lease Terms: Key lease provisions including term, renewal options, and rental amounts

7. Use of Property: Permitted uses, maintenance obligations, and operational requirements

8. Payment Terms: Detailed rental payment provisions, including timing, method, and adjustments

9. Insurance and Liability: Insurance requirements and allocation of risks between parties

10. Default and Remedies: Events of default and corresponding remedies for both sale and lease components

11. Termination: Circumstances and procedures for termination of the agreement

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

13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and entire agreement

What sections are optional to include in a Sale And Leaseback Agreement?

1. Purchase Option: Terms for lessee to repurchase the property, included when parties agree to such option

2. Environmental Matters: Specific provisions for properties with environmental concerns or requirements

3. Tax Structure: Detailed tax arrangements when specific tax treatment is desired

4. Financing Provisions: Required when external financing is involved in the transaction

5. Property Management: Included when specific property management arrangements are needed

6. Subletting and Assignment: When parties want to specifically address these rights

7. Construction and Alterations: For properties requiring or permitting significant modifications

8. Force Majeure: Detailed force majeure provisions when required beyond standard clauses

What schedules should be included in a Sale And Leaseback Agreement?

1. Property Description: Detailed legal and technical description of the property

2. Purchase Price Calculation: Breakdown of purchase price and payment terms

3. Rental Calculation: Detailed rental calculations, including any adjustments or escalations

4. Condition Report: Detailed assessment of property condition at time of sale

5. Required Insurance: Specific insurance requirements and coverage levels

6. Operating Expenses: Breakdown of operating expenses and responsibility allocation

7. Maintenance Schedule: Required maintenance and repair responsibilities

8. Form of Transfer Deed: Template for property transfer documentation

9. Required Permits and Licenses: List of necessary governmental approvals and permits

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

Contract to Sell

Cost

Free to use
Relevant legal definitions
















































Clauses






































Relevant Industries

Real Estate

Manufacturing

Retail

Hospitality

Healthcare

Education

Logistics

Industrial

Banking and Financial Services

Transportation

Energy and Resources

Technology

Agriculture

Relevant Teams

Legal

Finance

Real Estate

Operations

Tax

Risk Management

Facilities Management

Treasury

Corporate Development

Strategy

Compliance

Property Management

Relevant Roles

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Finance Director

Corporate Treasurer

Asset Manager

Facilities Manager

Risk Manager

Tax Director

Operations Director

Investment Manager

Corporate Secretary

Business Development Director

Strategy 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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