Document background
The Lease Purchase Agreement serves as a crucial legal instrument in Indonesian property transactions, offering a flexible pathway to property ownership while providing immediate occupancy rights. This document type is particularly useful when buyers need time to arrange financing or prefer to test the property before committing to a purchase. The agreement must comply with Indonesian property laws, including the Civil Code (KUH Perdata) and Basic Agrarian Law, and typically includes detailed terms for both the lease period and the eventual purchase option. It is commonly used in both residential and commercial contexts, requiring careful consideration of property rights, registration requirements, and tax implications under Indonesian law. The document protects both parties' interests by clearly defining the transition from lease to ownership and establishing all necessary conditions for a valid property transfer.
