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Addendum To Commercial Lease Agreement

Addendum To Commercial Lease Agreement Template for Indonesia

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Key Requirements PROMPT example:

Addendum To Commercial Lease Agreement

"I need an Addendum to Commercial Lease Agreement for our retail space in Jakarta, extending the current lease term by 5 years from March 2025 and increasing the monthly rent by 15%, while also updating the permitted use to include both retail and food service operations."

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Document background
An Addendum To Commercial Lease Agreement is a crucial document used when parties need to modify terms of an existing commercial lease without completely replacing the original agreement. This document type is particularly important in the Indonesian commercial property market, where changing business conditions, market dynamics, or tenant/landlord requirements may necessitate adjustments to existing lease arrangements. The addendum must comply with Indonesian Civil Code requirements and property regulations, typically addressing modifications such as lease term extensions, rent adjustments, changes in property use, or updated maintenance responsibilities. It requires careful drafting to ensure consistency with the original agreement and local legal requirements, often necessitating review by legal professionals familiar with Indonesian property law.
Suggested Sections

1. Parties: Identification of the Landlord and Tenant as named in the original lease agreement

2. Background: Reference to the original lease agreement, including its date of execution and any previous amendments

3. Definitions: Key terms used in the addendum, including reference to definitions in the original lease that remain applicable

4. Purpose of Amendment: Clear statement of the intent and purpose of this addendum

5. Original Provisions: Identification of the specific clauses or sections from the original lease being modified

6. Modified Provisions: Detailed description of the new or modified terms replacing the original provisions

7. Confirmation of Other Terms: Statement confirming that all other terms and conditions of the original lease remain unchanged and in full force

8. Effective Date: Specification of when the modifications take effect

9. Governing Law: Confirmation that Indonesian law governs the addendum

10. Execution: Signature blocks for all parties and any required witnesses

Optional Sections

1. Additional Premises: Required when the modification includes changes to the leased premises area or description

2. Rental Adjustment: Used when modifying rent amounts, payment terms, or security deposit requirements

3. Term Extension: Included when modifying the duration of the lease term

4. Use Modification: Required when changing the permitted use of the premises

5. Maintenance and Repairs: Included when modifying responsibilities for property maintenance or improvements

6. Insurance Requirements: Used when updating insurance obligations or requirements

7. Assignment and Subletting: Included when modifying terms related to assignment or subletting rights

8. Force Majeure: Added when updating provisions for unforeseen circumstances or force majeure events

Suggested Schedules

1. Schedule A - Modified Floor Plan: Updated floor plans or premises descriptions if the leased area is modified

2. Schedule B - Revised Rent Schedule: Details of modified rent amounts and payment schedules if applicable

3. Schedule C - Additional Terms and Conditions: Any supplementary terms or conditions specific to the modifications

4. Appendix 1 - Original Lease Agreement: Copy of the original lease agreement being modified

5. Appendix 2 - Supporting Documents: Any relevant permits, certificates, or other supporting documentation required for the modifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Addendum
Original Lease Agreement
Effective Date
Premises
Modified Terms
Landlord
Tenant
Commencement Date
Base Rent
Additional Rent
Security Deposit
Common Areas
Operating Expenses
Force Majeure
Permitted Use
Business Day
Building
Lease Term
Modified Provisions
Original Provisions
Parties
Property
Rental Period
Service Charge
Utilities
Building Management
Maintenance
Extension Period
Governing Law
KUHPerdata
Notarial Deed
Working Hours
Building Rules and Regulations
Insurance Requirements
Relevant Industries

Retail

Office Space

Industrial

Warehousing

Hospitality

Healthcare

Education

Banking and Finance

Technology

Manufacturing

Food and Beverage

Entertainment

Professional Services

Logistics

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Risk and Compliance

Property Management

Asset Management

Business Development

Administrative Services

Relevant Roles

Property Manager

Real Estate Manager

Legal Counsel

Facilities Manager

Commercial Director

Operations Manager

Chief Financial Officer

Asset Manager

Leasing Manager

Contract Administrator

Risk Manager

Compliance Officer

Business Development Manager

General Manager

Industries
Indonesian Civil Code (KUHPerdata): The fundamental law governing contracts and agreements in Indonesia, particularly Book III on Obligations and Book II on Property. Articles 1313-1351 govern contract formation and modification, while Articles 1548-1600 specifically regulate lease agreements.
Government Regulation No. 40 of 1996: Regulates land use rights including Right to Build (HGB), Right to Use (HP), and Right to Manage (HPL), which are crucial for commercial property leases.
Law No. 20 of 2011 on Apartments: Relevant for commercial lease agreements involving units in multi-story buildings, regulating rights and obligations in shared commercial spaces.
Law No. 25 of 2007 on Investment: Governs foreign investment aspects including regulations on property ownership and lease by foreign entities in Indonesia.
Regional Building Regulations (Peraturan Daerah): Local regulations that vary by region governing building use, maintenance, and commercial activities within specific jurisdictions.
Minister of Trade Regulation No. 47/M-DAG/PER/6/2017: Regulates shopping centers and modern stores, including provisions relevant to commercial lease arrangements in retail spaces.
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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