Lease Assignment And Assumption Agreement Template for Indonesia

The Lease Assignment And Assumption Agreement is a critical document used in Indonesian real estate transactions when an existing tenant needs to transfer their lease obligations to another party. This commonly occurs during business acquisitions, corporate restructuring, or when a tenant needs to exit a lease agreement before its natural termination. The document must comply with Indonesian Civil Code requirements and property regulations, requiring formal notarization and proper registration with relevant authorities. It typically includes comprehensive details about the original lease, property specifications, financial obligations, and consent requirements. The agreement serves to protect all parties' interests by clearly defining the transfer of rights and obligations, handling of security deposits, and addressing any outstanding issues. It's particularly important in Indonesia's civil law system, where formal documentation and proper execution are crucial for legal enforcement.

1. Parties: Identification of the original lessor, original lessee (assignor), and new lessee (assignee), including their complete legal names, addresses, and company registration details if applicable

2. Background: Recitals explaining the existing lease agreement, the intention to assign, and the context of the assignment

3. Definitions: Key terms used throughout the agreement, including 'Original Lease', 'Assignment Date', 'Premises', 'Lease Obligations', etc.

4. Assignment and Assumption: Core provisions detailing the assignment of lease rights and assumption of obligations by the assignee

5. Lessor's Consent: Documentation of the lessor's approval of the assignment and any conditions attached to such consent

6. Effective Date: Specification of when the assignment becomes effective

7. Assignor's Representations and Warranties: Assurances regarding the lease status, no defaults, authority to assign, etc.

8. Assignee's Representations and Warranties: Assurances regarding capacity to assume, understanding of obligations, financial capability, etc.

9. Release of Assignor: Terms regarding the release of the assignor from future obligations under the lease

10. Payment and Security Deposit: Handling of any security deposits, advance rent payments, and other financial matters

11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and relevant jurisdiction for disputes

12. Execution: Signature blocks for all parties, including witnesses and notary if required