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Licence Agreement To Occupy Property Before Completion Of Purchase for Indonesia

Licence Agreement To Occupy Property Before Completion Of Purchase Template for Indonesia

A legal document governed by Indonesian law that grants temporary occupation rights to a prospective purchaser before the completion of a property purchase transaction. This agreement bridges the gap between purchase agreement signing and completion, providing legal protection for both parties during the interim period. The document operates within the framework of Indonesian property law, particularly the Basic Agrarian Law and Civil Code, establishing clear terms for occupation, responsibilities, and the relationship with the main purchase agreement. It includes provisions for license fees, maintenance obligations, insurance requirements, and conditions for termination.

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What is a Licence Agreement To Occupy Property Before Completion Of Purchase?

The Licence Agreement To Occupy Property Before Completion Of Purchase is essential in Indonesian property transactions where immediate occupation is required before the final transfer of ownership. This situation commonly arises when there are delays in administrative processes, pending permits, or financing arrangements, but the purchaser needs to occupy the property urgently. The agreement provides a legal framework under Indonesian law for such temporary occupation while protecting both parties' interests. It addresses crucial aspects including occupation terms, maintenance responsibilities, insurance requirements, and relationship with the main purchase agreement. The document must comply with Indonesian property regulations, particularly the Basic Agrarian Law and Civil Code, and typically includes detailed provisions about property use, payment terms, and obligations of both parties. This type of agreement is particularly relevant in commercial, residential, and industrial property transactions where timing gaps between agreement and completion need to be bridged legally.

What sections should be included in a Licence Agreement To Occupy Property Before Completion Of Purchase?

1. Parties: Identification of the Property Owner/Seller (Licensor) and the Prospective Purchaser (Licensee)

2. Background: Context of the agreement, including reference to the main purchase agreement and reason for temporary occupation

3. Definitions: Key terms used throughout the agreement, including Property, License Period, Purchase Agreement, Completion Date

4. Grant of License: Terms of the temporary occupation license, scope, and nature of rights granted

5. License Period: Duration of the license, commencement date, and conditions for extension or early termination

6. License Fee: Amount, payment terms, and treatment of the license fee in relation to the purchase price

7. Permitted Use: Specified allowed uses of the property during the license period

8. Licensee's Obligations: Responsibilities including maintenance, utilities, compliance with regulations, and insurance requirements

9. Licensor's Obligations: Responsibilities of the property owner during the license period

10. Property Condition: State of the property at commencement and requirements for maintaining condition

11. Relationship with Purchase Agreement: How this license agreement interacts with the main purchase agreement

12. Termination: Circumstances allowing termination and consequences thereof

13. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution procedures

What sections are optional to include in a Licence Agreement To Occupy Property Before Completion Of Purchase?

1. Security Deposit: Include when additional security beyond the license fee is required

2. Alterations and Improvements: Include when the licensee is permitted to make changes to the property

3. Sub-licensing: Include when there's a need to explicitly prohibit or permit sub-licensing

4. Environmental Matters: Include for properties with specific environmental considerations or requirements

5. Force Majeure: Include when specific provisions for unforeseen circumstances are needed

6. Property Management: Include for properties within managed complexes or buildings

7. Interim Planning and Permits: Include when the licensee needs to obtain permits during the license period

What schedules should be included in a Licence Agreement To Occupy Property Before Completion Of Purchase?

1. Schedule 1 - Property Description: Detailed description of the property including address, boundaries, and included fixtures

2. Schedule 2 - Plan of the Property: Floor plans or site plans of the licensed property

3. Schedule 3 - Inventory: List of any furnishings or equipment included in the license

4. Schedule 4 - Condition Report: Detailed report on the condition of the property at commencement

5. Schedule 5 - Purchase Agreement Terms: Key terms from the purchase agreement relevant to the license

6. Appendix A - Required Insurance: Details of insurance requirements during the license period

7. Appendix B - House Rules: If applicable, rules and regulations for the property or complex

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

Document Type

License Agreement

Sector

IP

Cost

Free to use
Relevant legal definitions



































Clauses



































Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail

Hospitality

Manufacturing

Warehousing

Office Space

Mixed-Use Development

Relevant Teams

Legal

Real Estate

Property Management

Facilities Management

Risk Management

Compliance

Operations

Commercial

Asset Management

Acquisitions

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Contract Manager

Facilities Manager

Real Estate Director

Chief Legal Officer

Property Operations Manager

Asset Manager

Acquisition Manager

Commercial Director

Real Estate Agent

Property Developer

Compliance Officer

Risk Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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