LEGAL PROTECTION AND PREVENTION OF DISPUTE RISK IN SHOP HOUSE LEASE AGREEMENT

Abstract

This study aims to examine the legal protection of business actors in shop-house lease agreements, focusing on legal certainty, division of responsibilities, consequences of default, and vulnerability to hidden defects in the leased property. It emphasizes the importance of written contracts, based on the Civil Code, Government Regulation No. 14 of 2016, and Law No. 1 of 2011, which regulate the rights, obligations, and dispute resolution mechanisms between tenants and shop-house owners. Leasing practices in the commercial property sector often face legal challenges, including unbalanced contract clauses, lack of technical verification, and the risk of unauthorized transfer. The findings show that legal protection can be improved through well-drafted contracts, inclusion of handover documentation, attachment of technical specifications, and active involvement of notaries. Jurisprudence also plays a role in assessing the validity, enforceability, and consequences of default in lease agreements. These findings suggest that shop-house lease contracts not only reduces dispute risks but also fosters a stable, fair, and sustainable business environment. It is recommended that all parties improve legal literacy, enhance documentation, and apply the precautionary principle to prevent defaults and losses due to hidden defects. Cross-sector collaboration and legal education initiatives by the government are essential to strengthening the legal position of business actors in commercial property leasing.