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Termination Of A Lease Agreement for Indonesia

Termination Of A Lease Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law, specifically the Indonesian Civil Code (KUHPerdata), that formally ends a lease agreement between a landlord and tenant. The document outlines the terms and conditions for terminating the lease, including the effective termination date, property handover requirements, settlement of outstanding payments, and return of security deposits. It incorporates specific Indonesian legal requirements for property lease terminations, including necessary witness signatures and notarization requirements where applicable. The agreement provides legal protection for both parties and ensures a clear framework for concluding the landlord-tenant relationship in accordance with Indonesian property law.

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Termination Of A Lease Agreement

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What is a Termination Of A Lease Agreement?

The Termination Of A Lease Agreement is a crucial document used in Indonesian property law when parties mutually agree to end their lease arrangement before its natural expiration or to formally document the end of a lease term. This document is essential in both residential and commercial contexts, falling under the governance of the Indonesian Civil Code (KUHPerdata) and relevant property regulations. It should be used when both parties have agreed to terminate their lease relationship and need to document the terms of separation, including property handover, financial settlements, and mutual releases. The agreement typically includes specific provisions required by Indonesian law, such as witness signatures and potential notarization, especially for high-value commercial properties. It provides protection for both landlords and tenants by clearly documenting the termination terms and ensuring compliance with local property laws and regulations.

What sections should be included in a Termination Of A Lease Agreement?

1. Parties: Identification of the Landlord and Tenant, including their complete legal names, addresses, and any relevant registration numbers for companies

2. Background: Details of the original lease agreement including its date, property address, and reference to its registration (if any)

3. Definitions: Key terms used in the agreement, including 'Termination Date', 'Property', 'Original Lease', and 'Outstanding Obligations'

4. Termination Agreement: Mutual agreement to terminate the lease, specifying the effective termination date

5. Property Handover: Terms and conditions for returning the property, including inspection requirements and condition standards

6. Settlement of Accounts: Details regarding final rent payment, return of security deposit, and settlement of any outstanding utilities or charges

7. Release and Waiver: Mutual release from future obligations under the original lease, subject to completing all termination requirements

8. Surviving Obligations: Specification of any obligations that continue after termination

9. Governing Law: Confirmation that the agreement is governed by Indonesian law

10. Execution: Signature blocks for all parties, including witness requirements under Indonesian law

What sections are optional to include in a Termination Of A Lease Agreement?

1. Compensation Payment: Required if either party is making a payment as consideration for early termination

2. Reinstatement Works: Needed if specific renovation or restoration works are required before property handover

3. Confidentiality: Important for commercial leases where termination terms should remain private

4. Tax Provisions: Required for commercial properties where tax implications need to be addressed

5. Third Party Rights: Necessary if there are guarantors or other third parties involved in the original lease

6. Dispute Resolution: Optional detailed dispute resolution procedure, particularly important for high-value commercial leases

What schedules should be included in a Termination Of A Lease Agreement?

1. Schedule 1 - Original Lease Details: Copy or key details of the original lease agreement

2. Schedule 2 - Property Inventory: Current inventory and condition report of the property

3. Schedule 3 - Settlement Calculation: Detailed calculation of final payments, deposit returns, and any deductions

4. Schedule 4 - Handover Checklist: Checklist of items to be completed before and during property handover

5. Appendix A - Property Photographs: Current dated photographs of the property condition

6. Appendix B - Outstanding Maintenance Items: List of any maintenance or repair items to be addressed before handover

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

Termination Letter

Cost

Free to use
Relevant legal definitions





























Clauses




























Relevant Industries

Real Estate

Residential Property

Commercial Property

Retail

Office Space

Industrial

Hospitality

Manufacturing

Warehousing

Mixed-Use Development

Relevant Teams

Legal

Real Estate

Property Management

Facilities Management

Operations

Asset Management

Tenant Relations

Contract Administration

Compliance

Property Services

Relevant Roles

Property Manager

Real Estate Manager

Leasing Manager

Legal Counsel

Facilities Manager

Asset Manager

Operations Manager

Property Administrator

Tenant Relations Manager

Contract Administrator

Real Estate Director

Compliance Officer

Property Investment Manager

Building 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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