Lease Termination Letter Template for Indonesia

A formal document governed by Indonesian law, particularly the Civil Code (KUHPerdata), used to officially communicate the intention to terminate a lease agreement. This document serves as a legal notice that includes essential details such as property information, termination date, and conditions for lease conclusion. It complies with Indonesian property law requirements and includes provisions for security deposit return, final inspection arrangements, and settlement of any outstanding obligations. The letter can be used for both residential and commercial properties, incorporating specific requirements based on local regulations and the nature of the lease agreement.

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What is a Lease Termination Letter?

A Lease Termination Letter is a crucial document used in Indonesian property law to formally end a lease agreement between parties. It serves as official documentation of the intention to terminate the lease and outlines the processes and obligations for concluding the tenancy. This document is essential when either party wishes to end a lease agreement, whether at the natural end of the term or through early termination. The letter must comply with Indonesian Civil Code requirements and may need to address specific local regulations depending on the property's location. It typically includes details about the property, termination date, final inspection arrangements, security deposit return procedures, and settlement of any outstanding matters. The document can be initiated by either landlord or tenant and is commonly used in both residential and commercial contexts, requiring careful attention to legal requirements and proper notice periods under Indonesian law.

What sections should be included in a Lease Termination Letter?

1. Header Information: Sender's and recipient's complete names and addresses, date of letter

2. Lease Reference: Details of the original lease agreement including date, property address, and any reference numbers

3. Termination Statement: Clear statement of intention to terminate the lease, citing the specific termination date

4. Legal Basis: Reference to relevant lease clause or legal basis allowing for termination

5. Key Dates: Important dates including last day of occupancy and key handover timing

6. Property Inspection: Proposed date and time for final property inspection

7. Closing: Formal closing, signature block, and contact information for further communication

What sections are optional to include in a Lease Termination Letter?

1. Security Deposit: Include when there is a security deposit to be returned, specifying amount and return process

2. Outstanding Payments: Include when there are any pending rent payments or utility bills to be settled

3. Property Damage: Include when there are specific property damage issues that need to be addressed

4. Forwarding Address: Include when tenant needs to provide a forwarding address for future correspondence

5. Early Termination Fee: Include when the termination involves early termination penalties or fees

6. Mutual Agreement Statement: Include when the termination is by mutual agreement of both parties

What schedules should be included in a Lease Termination Letter?

1. Property Condition Report: Detailed documentation of the current property condition, including photographs if applicable

2. Outstanding Payments Schedule: Itemized list of any pending payments or settlements required

3. Security Deposit Calculation: Breakdown of security deposit deductions if applicable

4. Utility Readings: Final readings for utilities and associated payment calculations

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

Jurisdiction

Indonesia

Publisher

Genie AI

Cost

Free to use

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