Lease To Own Agreement Template for Indonesia

The Lease To Own Agreement is a specialized legal instrument used in Indonesia when parties wish to combine a property lease with a future purchase arrangement. This document is particularly useful when a potential buyer cannot make an immediate purchase but wants to secure the property with a future ownership commitment. It's commonly used in both residential and commercial contexts, providing a structured pathway from tenancy to ownership. The agreement must comply with Indonesian property laws, including the Basic Agrarian Law and relevant regulations on property transfer. It includes comprehensive details about the property, payment terms, maintenance responsibilities, and the specific conditions under which the transfer of ownership will occur. This type of agreement is especially relevant in Indonesia's dynamic property market, where it can help bridge the gap between rental and ownership while ensuring legal compliance with local property regulations and ownership restrictions.

1. Parties: Identification of the lessor/seller and lessee/buyer, including complete legal names, addresses, and identification numbers

2. Background: Context of the agreement, including property ownership status and parties' intentions regarding the lease-to-own arrangement

3. Definitions: Key terms used throughout the agreement, including property description, lease period, purchase price, and other relevant terminology

4. Property Details: Comprehensive description of the property, including address, certificate numbers, and specifications

5. Lease Terms: Duration of lease, monthly payments, and conditions for lease renewal or termination

6. Purchase Option: Terms and conditions for exercising the purchase option, including final purchase price and credit for lease payments

7. Payment Terms: Payment schedule, including lease payments, down payment, and purchase price payment structure

8. Rights and Obligations: Detailed responsibilities of both parties during the lease period and transfer of ownership

9. Property Maintenance: Responsibilities for maintenance, repairs, and improvements during the lease period

10. Insurance and Taxes: Requirements for property insurance and responsibility for property taxes

11. Default and Remedies: Consequences of default by either party and available remedies

12. Transfer of Ownership: Process and requirements for final transfer of property ownership

13. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional details

14. Dispute Resolution: Process for resolving disputes between parties

15. Notices: Methods and addresses for official communications between parties

16. Execution: Signature blocks and execution requirements