The MoU For Use of Property is a crucial document in Indonesian property transactions, serving as a preliminary agreement between property owners and users. This document is particularly relevant in situations where parties need to establish clear terms for property use before entering into a more detailed, formal agreement. It's commonly used in commercial, residential, and institutional contexts within Indonesia, requiring careful consideration of the Basic Agrarian Law (UU No. 5/1960) and local property regulations. The MoU typically addresses key aspects such as property identification, permitted uses, duration, maintenance responsibilities, and financial terms, while ensuring compliance with Indonesian property laws and foreign ownership restrictions. It's especially valuable for businesses establishing operations, organizations seeking temporary property use, or in situations requiring clear documentation of property usage rights without immediate need for a full lease agreement.
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1. Parties: Identification of all parties involved in the MoU, including full legal names, addresses, and registration numbers if applicable
2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into this MoU
3. Definitions: Clear definitions of key terms used throughout the MoU
4. Property Details: Comprehensive description of the property including address, boundaries, and registration details
5. Purpose and Scope: Detailed description of how the property will be used and the scope of the permission granted
6. Term and Duration: Period of the MoU, including start date, end date, and any renewal options
7. Rights and Obligations: Specific rights granted and obligations of each party regarding the property use
8. Financial Terms: Any financial arrangements, including usage fees, deposits, and payment terms
9. Maintenance and Repairs: Responsibilities for property maintenance and handling of repairs
10. Compliance: Obligation to comply with relevant laws, regulations, and property rules
11. Termination: Conditions and process for terminating the MoU
12. Governing Law: Specification of Indonesian law as governing law and jurisdiction
13. Signatures: Execution block for all parties to sign
1. Insurance: Requirements for insurance coverage, used when specific insurance policies need to be maintained
2. Utilities: Responsibility for utility payments and arrangements, included when utilities are part of the agreement
3. Alterations and Improvements: Terms for making changes to the property, included when modifications might be needed
4. Security Deposit: Terms regarding security deposit, if required
5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters
6. Assignment and Subletting: Terms regarding transfer of rights or subletting, if these might be considered
7. Environmental Compliance: Special environmental requirements, included for properties in environmentally sensitive areas
8. Dispute Resolution: Detailed dispute resolution procedures, included when parties want specific resolution mechanisms
1. Property Layout Plan: Detailed plans or drawings of the property including boundaries and measurements
2. Inventory List: List of any furnishings, equipment, or other items included in the property use
3. Maintenance Schedule: Detailed schedule of regular maintenance responsibilities
4. Property Rules and Regulations: Specific rules governing the use of the property
5. Payment Schedule: Detailed breakdown of any payments, including due dates and amounts
6. Condition Report: Documentation of the property's condition at the start of the agreement
7. Required Permits and Licenses: Copies or lists of necessary permits for property use
8. Insurance Requirements: Detailed insurance specifications and coverage requirements
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