How We Successfully Helped End a Lease Early in Bali
A young woman recently reached out to us with a serious issue: the house she had rented was constantly flooding. For over a month, she endured mold, dampness, blistering walls, and overall unlivable conditions. The situation had become unbearable, and she could no longer continue living under such circumstances.
Moving out wasn’t an option. The lease agreement required monthly payments for a one-year term and stated that early termination would require the tenant to pay for the entire duration. Additionally, the landlord was threatening her with deportation, police involvement, and legal action if she left before the contract ended. Given these circumstances, the woman reached out to us for legal advice.
After carefully reviewing the lease agreement, we identified a key loophole. In private correspondence, the landlord admitted that flooding in Bali was a widespread issue, which could qualify as a force majeure event under the contract. The agreement also did not specify who was authorized to assess the property’s habitability, allowing either party to make that determination. As a result, the tenant had the right to declare the property uninhabitable.
We used these points to invalidate the lease and release the tenant from further payments. We also developed a contingency plan in case the landlord chose to challenge the contract termination.
The landlord was forced to acknowledge that the tenant had acted within the law and agreed to terminate the lease without requiring payment for the remaining rental term. While recovering the deposit wasn't possible, the key outcome was that the tenant was able to leave the flooded property without incurring further financial losses or legal issues.
This case underscores the importance of thoroughly reviewing contract terms and paying attention to details from the outset. It also shows that, even in challenging situations, a legal solution can be found with professional support. We encourage all our clients to carefully read their agreements and be prepared for potential risks.
If you're facing a similar situation or need legal assistance when signing a lease agreement, don’t hesitate to contact us for a consultation. Legal Indonesia is here to help you navigate complex issues and protect your interests.
