The Early Termination of Tenancy Agreement is a crucial legal document used in Indonesian property law when parties need to formally end a lease before its scheduled expiration. This document becomes necessary in various situations, such as tenant relocation, property sale, or mutual agreement to end the tenancy early. It must comply with Indonesian Civil Code requirements and local property regulations, including specific provisions for notice periods, security deposit handling, and property restoration. The agreement protects both landlord and tenant interests by clearly documenting the termination terms, financial settlements, and property handover requirements. It's particularly important in Indonesia's dynamic property market, where both residential and commercial tenancy early terminations need careful legal structuring to prevent future disputes.
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1. Parties: Identification of the Landlord and Tenant, including their full legal names, addresses, and any relevant registration numbers
2. Background: Reference to the original tenancy agreement, its date, property details, and brief context for the early termination
3. Definitions: Definitions of key terms used in the agreement, including references to the original tenancy agreement terms
4. Termination Date: Clear specification of the agreed early termination date and time for vacating the premises
5. Settlement of Rental Payments: Details of any outstanding rent, prorated calculations, and final payment arrangements
6. Security Deposit: Terms for the return of the security deposit, including deductions if applicable and timeline for return
7. Handover Requirements: Specific conditions for returning the property, including cleaning requirements and property inspection procedures
8. Release and Waiver: Mutual release of future obligations and claims related to the tenancy agreement
9. Governing Law: Confirmation that the agreement is governed by Indonesian law and relevant jurisdictional details
10. Execution: Signature blocks and formal requirements for valid execution under Indonesian law
1. Outstanding Utilities: Include when there are specific arrangements needed for the settlement of utility bills
2. Compensation Payment: Include when either party is required to pay compensation for early termination
3. Property Damage Resolution: Include when there are specific issues regarding property damage that need to be addressed
4. Forwarding Address: Include when specific arrangements are needed for future correspondence or deposit return
5. Third Party Rights: Include when there are guarantors or other third parties involved in the original agreement
6. Force Majeure: Include when termination is related to unforeseen circumstances or events beyond parties' control
1. Schedule 1 - Original Tenancy Agreement: Copy or key details of the original tenancy agreement being terminated
2. Schedule 2 - Property Inventory: Current inventory list and condition report of the property
3. Schedule 3 - Payment Settlement Details: Detailed breakdown of all financial settlements, including rent, deposits, and any deductions
4. Schedule 4 - Handover Checklist: Specific checklist for property handover requirements and condition standards
5. Appendix A - Property Inspection Report: Final inspection report documenting the condition of the property at termination
6. Appendix B - Utility Readings: Final utility meter readings and settlement calculations if applicable
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