The License Agreement Tenancy serves as a vital legal instrument in the Indonesian property market, providing a flexible alternative to traditional lease arrangements. This document is particularly useful when parties seek a more adaptable arrangement for property usage, commonly employed in commercial, residential, and mixed-use properties throughout Indonesia. It incorporates essential elements required by Indonesian law, including compliance with the Civil Code (KUHPerdata), property regulations, and local licensing requirements. The agreement is designed to protect both licensor and licensee interests while maintaining alignment with Indonesian property rights and usage regulations. It's particularly relevant for situations requiring shorter terms, specific use conditions, or when traditional leasing arrangements may not be suitable. The document includes comprehensive details about property usage rights, payment terms, maintenance responsibilities, and compliance requirements, making it suitable for both domestic and foreign entities operating in Indonesia.
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1. Parties: Identification of the licensor and licensee with complete legal details
2. Background: Context of the agreement and brief description of the property and intended use
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of License: Specific terms of the license granted, including scope and limitations
5. Duration: Term of the license, including start date, end date, and any renewal options
6. License Fee: Amount, payment schedule, and method of payment for the license
7. Security Deposit: Details of security deposit amount, terms of holding, and conditions for return
8. Permitted Use: Specific allowed uses of the property under the license
9. Licensee's Obligations: Key responsibilities and obligations of the licensee
10. Licensor's Obligations: Key responsibilities and obligations of the licensor
11. Utilities and Maintenance: Responsibilities for utilities, maintenance, and repairs
12. Insurance: Required insurance coverage and responsibilities
13. Termination: Conditions and process for early termination
14. Governing Law: Specification of Indonesian law as governing law
15. Dispute Resolution: Process for resolving disputes between parties
16. Notices: Method and addresses for official communications
17. Execution: Signature blocks and execution requirements
1. Force Majeure: Provisions for unforeseen circumstances - include if property is in natural disaster-prone areas
2. Assignment and Sublicensing: Include if sublicensing or assignment might be permitted under certain conditions
3. Alterations and Improvements: Include if licensee may make changes to the property
4. Environmental Matters: Include for industrial or commercial properties with potential environmental impacts
5. Building Rules and Regulations: Include for properties within managed buildings or complexes
6. Foreign Investment Provisions: Include if either party is a foreign entity
7. Break Clause: Include if early termination options are to be provided
8. Option to Purchase: Include if licensee might have future purchase rights
1. Property Description: Detailed description of the licensed property including floor plans and boundaries
2. Inventory: List of furniture, fixtures, and equipment included in the license
3. Service Charges: Breakdown of service charges and maintenance fees
4. Building Rules: Specific rules and regulations of the building or complex
5. Condition Report: Initial condition of the property with photographs
6. Permitted Alterations: List of allowed modifications or improvements
7. Payment Schedule: Detailed breakdown of all payments including license fee, deposits, and other charges
8. Required Permits: List of necessary permits and licenses for the intended use
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