Rental Contract With Option To Buy Template for Indonesia

The Rental Contract With Option to Buy is a specialized agreement used in Indonesian property transactions where a tenant wishes to rent a property while maintaining the option to purchase it in the future. This document is particularly relevant in situations where immediate purchase is not feasible or desired, but there is interest in securing future ownership rights. The agreement must comply with Indonesian property law, including the Basic Agrarian Law (UUPA) and relevant provisions of the Civil Code (KUHPerdata). It typically includes detailed specifications about the rental period, purchase option terms, property maintenance, and the specific conditions under which the purchase option can be exercised. This type of agreement is commonly used in both residential and commercial property transactions, providing flexibility for tenants while giving property owners a committed long-term arrangement with a potential sale outcome.

1. Parties: Identification of the landlord/potential seller and tenant/potential buyer, including complete legal names, addresses, and identity numbers

2. Background: Context of the agreement, including brief property description and parties' intention for rental with purchase option

3. Definitions: Key terms used throughout the agreement, including Property, Rental Period, Purchase Option, Option Period, etc.

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

5. Rental Terms: Rental period, monthly rent amount, payment terms, security deposit, and other rental conditions

6. Option to Purchase: Terms of the purchase option, including option period, purchase price, and mechanism for exercising the option

7. Maintenance and Repairs: Responsibilities of each party regarding property maintenance and repairs during the rental period

8. Insurance and Taxes: Requirements for property insurance and responsibility for various taxes during both rental and potential purchase

9. Utilities and Services: Responsibility for utility payments and essential services

10. Use of Property: Permitted uses of the property and any restrictions

11. Exercise of Purchase Option: Detailed process for exercising the purchase option, including notice requirements and payment terms

12. Default and Remedies: Consequences of default under both rental and purchase option provisions

13. Termination: Conditions and process for termination of the agreement

14. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction

15. Notices: Process and requirements for formal communications between parties

16. Signatures: Execution block with space for signatures, witnesses, and date