The Termination Of Rental Agreement is a crucial document used when parties mutually agree to end their rental relationship or when termination occurs according to pre-agreed terms under Indonesian law. This document is essential for both residential and commercial properties, ensuring compliance with the Indonesian Civil Code (KUH Perdata) and local property regulations. It outlines the termination process, including the effective date, property handover procedures, security deposit settlement, and resolution of any outstanding obligations. The agreement should be drafted in both Indonesian and English (if required for international parties) and must include proper witnessing and execution as per Indonesian legal requirements. This document helps prevent future disputes by clearly documenting the terms of separation and ensuring all parties understand their rights and obligations during the termination process.
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1. Parties: Identification of the landlord/lessor and tenant/lessee with complete legal names and addresses
2. Background: Reference to the original rental agreement including its date, property address, and term
3. Definitions: Key terms used in the termination agreement including 'Effective Date', 'Property', 'Original Agreement', and 'Security Deposit'
4. Termination Declaration: Clear statement of mutual agreement to terminate the rental agreement and the effective termination date
5. Property Inspection: Terms for final inspection, including condition assessment and damage evaluation process
6. Security Deposit Settlement: Process and timeline for the return of security deposit, including any deductions for damages or outstanding payments
7. Outstanding Payments: Settlement of any remaining rent, utilities, or other charges
8. Key Return: Arrangements for returning keys and access devices
9. Release of Obligations: Mutual release of future obligations under the original agreement
10. Governing Law: Confirmation that Indonesian law governs the termination agreement
11. Signatures: Execution block for all parties including date and witnesses
1. Holdover Provisions: Required for cases where the tenant needs additional time to vacate
2. Commercial Terms: Needed for commercial properties to address business fixtures, licenses, and permits
3. Confidentiality: Optional for commercial properties or when sensitive terms are involved
4. Property Restoration: Required when significant modifications were made to the property during tenancy
5. Dispute Resolution: Optional section detailing specific dispute resolution procedures
6. Insurance: Required when insurance matters need to be addressed post-termination
7. Third Party Rights: Needed when other parties (like guarantors) are involved in the original agreement
1. Property Condition Report: Detailed assessment of the property's condition at termination
2. Outstanding Payments Schedule: Itemized list of any remaining payments or adjustments
3. Security Deposit Calculation: Detailed breakdown of security deposit deductions and returns
4. Inventory List: List of any furniture or fixtures included in the original rental and their current status
5. Photographic Evidence: Photos documenting the property's condition at termination
6. Original Rental Agreement: Copy of the original rental agreement being terminated
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