Lease Takeover Agreement Template for Indonesia

A Lease Takeover Agreement enables you to legally transfer your existing lease obligations to another tenant or assume someone else's lease rights in Indonesia. This document is essential when you need to exit a lease early or take over favorable lease terms from another tenant, ensuring all parties comply with Indonesian Civil Code requirements and property regulations.

When do you need this document?

You need this agreement when your business is relocating but wants to avoid lease termination penalties, or when you're expanding and want to assume an existing tenant's favorable lease terms. It's commonly used in commercial property transactions where businesses transfer retail spaces, office locations, or warehouse facilities to new operators. The document is also necessary when corporate restructuring involves transferring lease obligations between related entities, or when a tenant finds a replacement to fulfill their remaining lease commitments. In residential contexts, you might use this agreement when subletting is restricted but lease assignment is permitted under your original rental agreement.

Key legal considerations

The agreement must clearly establish that the original tenant (assignor) transfers all rights and obligations to the new tenant (assignee) with explicit landlord consent. You need to address security deposit arrangements, including whether the original deposit transfers or if a new deposit is required. The document should specify how outstanding rent, utilities, and maintenance obligations are handled between the parties. Assignment clauses must comply with the original lease terms, as many leases restrict or prohibit transfers without landlord approval. You should include provisions for liability allocation if the new tenant defaults, protecting the original tenant from future claims. The agreement must also address any modifications to the original lease terms that accompany the transfer.

Legal requirements in Indonesia

Under Indonesian Civil Code (KUHPerdata), lease assignments require written agreements with proper witness signatures to ensure enforceability. Government Regulation No. 44 of 1994 governs residential lease transfers and mandates compliance with housing regulations for residential properties. Commercial lease takeovers must align with Law No. 28 of 2002 regarding building usage and occupancy requirements. The document requires identification of all parties including landlord (Pemberi Sewa), original tenant (Penyewa Asal), and new tenant (Penyewa Baru), with supporting documentation such as identity cards and business registration certificates. Witness requirements typically include two adult witnesses (Saksi) who can attest to the signing process. For commercial properties, you may need to comply with Minister of Trade Regulation No. 33/M-DAG/PER/8/2008 regarding business premises registration. The agreement should be executed in Indonesian language or include certified translations, and may require notarization depending on the property type and lease value.