Lease And Sale Agreement Template for Indonesia

The Lease and Sale Agreement is a sophisticated legal instrument used in Indonesian property transactions where parties wish to combine a lease period with a future purchase option. This document is particularly useful in situations where immediate purchase is not feasible or desired, such as commercial property arrangements, foreign investment structures, or staged property acquisitions. It must comply with Indonesian property law requirements, including the Basic Agrarian Law and relevant property regulations. The agreement typically includes comprehensive provisions for both the lease phase (including rental terms, maintenance, and property management) and the eventual sale (including purchase price, payment terms, and transfer requirements). This type of agreement is commonly used in commercial real estate transactions, corporate relocations, and investment property acquisitions where a trial period or staged purchase is advantageous.

1. Parties: Identification of the lessor/seller and lessee/buyer, including complete legal names, addresses, and registration details if companies

2. Background: Context of the agreement, including property overview and intention to lease with option to purchase

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Lease Period, Purchase Price, Completion Date

4. Property Details: Comprehensive description of the property including legal title details and registration numbers

5. Lease Terms: Duration of lease, rental amount, payment terms, and maintenance responsibilities

6. Purchase Option: Terms and conditions for exercising the purchase option, including notice requirements and timeframes

7. Purchase Price and Payment: Agreed purchase price, payment schedule, and any adjustments from paid rent

8. Conditions Precedent: Conditions that must be satisfied before the sale can proceed

9. Completion Process: Steps for completing the sale transaction, including documentation and registration requirements

10. Representations and Warranties: Statements of fact and promises by both parties regarding the property and their capacity to enter the agreement

11. Rights and Obligations: Ongoing responsibilities of both parties during lease period and transition to sale

12. Default and Termination: Circumstances constituting default and consequences for both lease and sale aspects

13. Governing Law: Confirmation of Indonesian law application and jurisdiction

14. Execution: Signature blocks and execution requirements