Notarial Lease Agreement and Non Notarial Lease Agreement

DETAILS:
A notarial lease agreement and a non-notarial lease agreement in Indonesia refer to two different forms of contracts used in property leasing, with the primary distinction being their legal standing and how they are executed. A Notarial Lease Agreement offers greater legal protection, is easier to enforce in court, and is more commonly used for high-value or long-term leases. A Non-Notarial Lease Agreement is more informal, cost-effective, and better suited for short-term or lower-value leases, though it may require more effort in legal enforcement.

REQUIREMENTS:

Notarial Lease Agreement:

• Identity Documents:

  • For individuals: KTP (for Indonesian citizens) or passport/KITAS (for foreign nationals).

  • For companies: Company registration documents such as the Deed of Establishment (Akta Pendirian) and Business Identification Number (NIB).

• Proof of Ownership (Landlord): Documents that prove the lessor’s ownership of the property, such as:

  • Land certificate (Sertifikat Tanah)

  • Building ownership certificate (IMB or Izin Mendirikan Bangunan) if applicable.

• Taxpayer Identification (NPWP): Both parties may be required to present their NPWP for tax-related purposes.

• Property Valuation and Details: A clear description of the property, including the size, location, and valuation.

Non Notarial Lease Agreement:

• Parties Involved:

  • Lessor (Landlord): The property owner or authorized person.

  • Lessee (Tenant): The individual or company renting the property.

• Documents Required:

  • Identity Documents:

    • For individuals: KTP (Indonesian Identity Card) or passport for foreigners.

    • For companies: Basic company documents like the Deed of Establishment or Business Identification Number (NIB).

  • Proof of Ownership (Landlord): The landlord must provide documents proving ownership of the property, such as:

    • Land or Property Title (Sertifikat Tanah or Property Deed).

    • If applicable, Building Permit (IMB).

• Agreement Drafting:

  • Mutual Consent: Both parties must mutually agree on the lease terms and conditions, which typically include:

    • Duration of the lease (short-term or long-term).

    • Payment terms: Rent amount, deposit, penalties for late payment.

    • Rights and responsibilities of each party (property maintenance, permitted activities, etc.).

    • Termination conditions: Conditions under which either party can terminate the lease.

  • Drafting the Agreement: The lease can be drafted privately between the lessor and lessee or with the help of a lawyer, but without a notary.

  • Signatures: Both parties sign the agreement in the presence of witnesses, but notarization is not necessary.

• Optional Legal Advice:

  • While not required, some parties may still seek legal advice or consultation to draft the agreement, especially if the lease involves significant property.

• Costs:

  • Lower Costs: Since no notary is involved, the cost of drafting a Non-Notarial Lease Agreement is generally lower. Only legal or advisory fees (if any) are applicable.

Legal Visa Bali Services:

Notarial Lease Agreement: 1%

Non Notarial Lease Agreement: By Request