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Sale And Leaseback Contract for Indonesia

Sale And Leaseback Contract Template for Indonesia

A Sale and Leaseback Contract under Indonesian law is a sophisticated legal arrangement where a property owner sells their property to a buyer while simultaneously entering into a lease agreement to continue occupying and using the property. This document is governed by Indonesian civil law and property regulations, particularly the Indonesian Civil Code (KUHPerdata) and Basic Agrarian Law. It combines elements of both sale and lease agreements, detailing the transfer of ownership, purchase price, lease terms, rental payments, maintenance responsibilities, and specific rights and obligations of both parties. The document must comply with Indonesian property transfer requirements and lease regulations while addressing tax implications and registration requirements.

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Sale And Leaseback Contract

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What is a Sale And Leaseback Contract?

The Sale and Leaseback Contract is a strategic financial and property management tool commonly used in Indonesian business transactions. It enables property owners to unlock capital from their real estate assets while retaining operational use through a long-term lease arrangement. This document type is particularly relevant when companies seek to improve their balance sheet position, secure financing, or optimize their real estate portfolio without disrupting business operations. The contract must comply with Indonesian property law, including the Basic Agrarian Law and relevant tax regulations. It typically includes comprehensive provisions for both the sale transaction and the subsequent lease arrangement, addressing property transfer procedures, lease terms, maintenance obligations, and potential future purchase options. This document is commonly used in commercial, industrial, and retail sectors, requiring careful consideration of both Indonesian property transfer requirements and commercial lease regulations.

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

1. Parties: Identification of the Seller/Lessee and Buyer/Lessor, including their full legal names, registration numbers, and addresses

2. Background: Context of the transaction, including the property ownership status and parties' intention to enter into a sale and leaseback arrangement

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

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

5. Lease Agreement: Terms of the leaseback arrangement, including lease period, rental payments, and usage rights

6. Property Handover: Process and requirements for the initial property transfer and continued possession

7. Representations and Warranties: Statements and guarantees by both parties regarding property condition, ownership, and authority to enter into the agreement

8. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements during the lease period

9. Insurance: Requirements for property insurance, including coverage types and responsible parties

10. Default and Remedies: Consequences of default by either party and available remedies

11. Termination: Conditions and procedures for agreement termination

12. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes

13. Notices: Process for formal communications between parties

14. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments

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

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

2. Environmental Compliance: Specific provisions for properties where environmental regulations are significant

3. Tax Provisions: Detailed tax arrangements when complex tax implications exist

4. Foreign Investment Provisions: Additional terms required when foreign investors are involved

5. Sublease Rights: Terms governing the lessee's right to sublease, if permitted

6. Property Management: Detailed management arrangements for complex commercial properties

7. Force Majeure: Extended provisions for unforeseen circumstances, particularly relevant for long-term arrangements

8. Change of Control: Provisions dealing with ownership changes in either party during the lease term

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

1. Property Description: Detailed description of the property including location, boundaries, and certificates

2. Purchase Price and Payment Terms: Detailed breakdown of purchase price, payment schedule, and payment mechanics

3. Rental Payment Schedule: Schedule of lease payments including amounts, dates, and adjustment mechanisms

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

5. Permitted Use: Specific terms regarding allowed property usage

6. Maintenance Schedule: Detailed maintenance responsibilities and schedules

7. Required Insurance: Specific insurance requirements and coverage details

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

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

Banking and Financial Services

Commercial Property

Industrial Manufacturing

Retail

Hospitality

Healthcare

Logistics and Warehousing

Education

Office Space Management

Relevant Teams

Legal

Finance

Real Estate

Operations

Tax

Facilities Management

Risk Management

Treasury

Property Management

Asset Management

Relevant Roles

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Finance Director

Asset Manager

Facilities Manager

Corporate Treasurer

Investment Manager

Operations Director

Risk Manager

Tax Manager

Property Development Manager

Real Estate Investment 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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