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End Of Lease Contract for Indonesia

End Of Lease Contract Template for Indonesia

A comprehensive legal document governed by Indonesian law that formally terminates a lease agreement between a landlord and tenant. This document ensures compliance with Indonesian Civil Code (KUHPerdata) requirements and local property regulations while documenting the final property inspection, settling financial matters including security deposits, addressing utility transfers, and providing mutual releases from future claims. It includes detailed provisions for property handover, condition assessment, and the settlement of any outstanding obligations, serving as a formal record of the lease termination.

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End Of Lease Contract

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What is a End Of Lease Contract?

The End of Lease Contract is a crucial document used in Indonesian property management when formally concluding a lease arrangement between parties. It operates under Indonesian law, particularly the Civil Code (KUHPerdata) and various property regulations, and is essential for both residential and commercial properties. This document is typically employed when a lease naturally expires or is terminated by mutual agreement, providing a comprehensive framework for property handover, financial settlements, and mutual releases. It includes critical elements such as final inspection details, security deposit calculations, utility settlements, and confirmation of fulfilled obligations. The document serves as legal protection for both parties, ensuring clear documentation of the lease termination process and compliance with Indonesian property laws.

What sections should be included in a End Of Lease Contract?

1. Parties: Identification of the Landlord/Lessor and Tenant/Lessee with complete legal names and addresses

2. Background: Reference to the original lease agreement, its term, and confirmation that both parties wish to formally terminate the lease

3. Definitions: Key terms used throughout the document including 'Property', 'Lease Agreement', 'Termination Date', and 'Security Deposit'

4. Confirmation of Lease Termination: Formal statement of the lease termination date and mutual agreement to end the lease

5. Property Inspection and Condition: Details of the final inspection process and agreement on the property's condition

6. Security Deposit Settlement: Terms for the return or deduction of the security deposit, including timeline and payment method

7. Outstanding Payments: Settlement of any remaining rent, utilities, or other charges

8. Handover Requirements: Specific requirements for returning keys, access cards, and other property-related items

9. Release and Indemnity: Mutual release from future claims related to the lease, subject to completing all obligations

10. Governing Law: Confirmation that Indonesian law governs the agreement

11. Execution: Signature blocks for all parties and witnesses

What sections are optional to include in a End Of Lease Contract?

1. Restoration Works: Required when the tenant needs to perform repairs or restoration before leaving

2. Utilities Transfer: Used when utilities need to be formally transferred back to the landlord or canceled

3. Business Premises Handover: Specific for commercial properties, including business licenses and permits

4. Abandoned Property: Procedures for dealing with any tenant property left behind

5. Future Reference: Optional section about landlord providing reference for tenant if agreed

6. Insurance Matters: Required when insurance policies need to be canceled or transferred

7. Third Party Rights: Needed when other parties (like guarantors) are involved in the lease

What schedules should be included in a End Of Lease Contract?

1. Schedule 1 - Property Condition Report: Detailed inspection report with photographs documenting the final condition of the property

2. Schedule 2 - Security Deposit Calculation: Itemized list of any deductions from the security deposit with supporting documentation

3. Schedule 3 - Utility Readings: Final meter readings for electricity, water, gas, and other utilities

4. Schedule 4 - Handover Checklist: List of items to be returned (keys, access cards, etc.) and their status

5. Schedule 5 - Outstanding Payments Summary: Detailed list of any remaining financial obligations and their settlement

6. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference

7. Appendix B - Photographic Evidence: Dated photographs of the property condition at handover

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
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Clauses






























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Property Manager

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