Document background
The Pre Tenancy Agreement is a crucial document in Indonesian property transactions that bridges the gap between initial property viewing and the execution of a formal lease. It is commonly used when parties have agreed in principle to a lease but need time to complete necessary checks, prepare documentation, or fulfill certain conditions. This document, regulated under Indonesian law including the Civil Code (KUHPerdata) and property regulations, typically includes provisions for holding deposits, timeline for completion, required documentation, and conditions precedent. It provides legal protection for both parties during the pre-lease period and helps ensure a smooth transition to the main lease agreement. The Pre Tenancy Agreement is particularly important in Indonesia's property market where administrative requirements and verification processes can be extensive, especially for foreign tenants.
