<![CDATA[General Background: Lease agreements establish legal rights and obligations between lessors and lessees concerning the use of property for a specified period in exchange for payment. Specific Background: In practice, a lease relationship may involve a third party when a lessee transfers or re-leases the leased property, particularly a shophouse, without the owner’s consent. Knowledge Gap: Previous studies have generally focused on default and disputes between lessors and lessees, while the legal position and responsibility of the second tenant in unauthorized shophouse lease transfers have received less specific attention. Aims: This study examines the validity of shophouse lease transfers within a three-party legal relationship and analyzes the legal responsibility of the second tenant arising from the transfer. Results: Using a normative juridical method and a statute approach, the study finds that the original agreement between the owner and the first tenant is valid and binding when it fulfills Article 1320 of the Indonesian Civil Code. However, a transfer to a third party without the owner’s consent does not create a legally binding relationship with the owner. The first tenant’s action constitutes default, while the second tenant’s possession without the owner’s permission may constitute an unlawful act. Novelty: The study specifically examines the legal position and responsibility of the second tenant within an unauthorized three-party shophouse lease relationship. Implications: A written agreement containing a clear clause governing lease transfers is recommended to provide legal certainty and protection for the parties. Key Findings Highlights The original arrangement satisfies the requirements of Article 1320 of the Indonesian Civil Code. Unauthorized re-leasing does not establish a binding relationship with the property owner. The first tenant may bear default responsibility, while the second tenant may face an unlawful-act claim. Keywords: Lease, Lease Transfer, Third Party, Shophouse, Civil Law]]>
