The Termination of Lease Agreement is used when both parties mutually agree to end their lease relationship before the original termination date, or to formally document the end of a lease at its natural conclusion. This document is essential in the Indonesian property market, where formal documentation of lease terminations is crucial for legal certainty. It should be used whenever a lease is being ended, whether for residential or commercial properties, to protect both parties' interests and ensure compliance with Indonesian law. The agreement typically includes details about the original lease, termination date, property handover requirements, settlement of financial obligations, and release of future claims. It must comply with the Indonesian Civil Code and relevant property regulations, while also addressing practical aspects such as utility transfers and security deposit returns.
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1. Parties: Identification of the Landlord and Tenant, including their complete legal names, addresses, and any registration numbers for companies
2. Background: Reference to the original lease agreement, including its date of execution and basic terms
3. Definitions: Key terms used in the agreement, including references to the Original Lease Agreement, Termination Date, and Property
4. Termination: Clear statement of the mutual agreement to terminate the lease, specifying the effective termination date
5. Settlement of Outstanding Obligations: Details of any remaining rent, utilities, or other payments due from either party
6. Property Handover: Requirements and process for returning the property, including condition requirements and inspection procedures
7. Security Deposit: Terms for the return or forfeiture of the security deposit, including any deductions
8. Release and Waiver: Mutual release of future claims related to the lease agreement
9. Governing Law: Specification that Indonesian law governs the agreement
10. Execution: Signature blocks and execution requirements
1. Damage Assessment: Used when there are specific damages to the property that need to be documented and addressed
2. Renovation Restoration: Include when the tenant made modifications to the property that need to be restored
3. Outstanding Third-Party Claims: Used when there are unresolved claims or disputes involving third parties
4. Confidentiality: Include for commercial leases where confidentiality of terms is important
5. Survival Clauses: Used to specify which provisions of the original lease continue after termination
6. Tax Implications: Include when there are specific tax considerations or obligations to be addressed
1. Property Inventory List: Detailed list of property condition and inventory at time of termination
2. Outstanding Payments Schedule: Itemized list of any pending payments or adjustments
3. Handover Checklist: Specific requirements for property handover and inspection
4. Damage Documentation: Photos and descriptions of any damage to the property
5. Original Lease Agreement: Copy of the original lease agreement being terminated
6. Utility Readings: Final readings of utilities and status of accounts
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