Document background
The Property License Agreement serves as a crucial legal instrument in Indonesian property transactions, providing a framework for temporary property usage rights without transferring ownership. This document is essential when property owners wish to grant specific usage rights to another party while maintaining ownership and control over their property. It addresses key requirements under Indonesian law, including compliance with the Basic Agrarian Law, local property regulations, and licensing requirements. The agreement is commonly used for commercial, industrial, or specialized property arrangements, incorporating necessary provisions for property usage, maintenance, fees, and regulatory compliance. It differs from a lease agreement in its scope and legal implications under Indonesian law, particularly regarding property rights and registration requirements.
