Advice on Buying Land..

7 posts  |  Started 1 year ago by sotron  |   Latest reply from Balisurfing  |  

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  1. sotron
    Member

    Hi all
    Im very interested to buy some land in INdonesia... My partner is native indonesian.
    What Is Required so the sale is safe and legitimate. eg. Lawers ? What government papers etc needed? And any hidden cost?
    any advice appreciated

    Thanks

    Posted 1 year ago #
  2. GONGBANGER
    Member

    sotron,

    The only advice I can give you is, Buy 1 acre, put a fence down the middle of it and give me half. ;-)

    Enjoy.

    Posted 1 year ago #
  3. sotron
    Member

    haha sounds good!!

    Posted 1 year ago #
  4. eagle
    Member

    The first serious question I would ask in a light hearted manner is "who is your partner?" If he or she is any of the following do not use them as a nominee:
    new best friend - driver - boyfriend - girlfriend- kupu kupu malam - bencong -
    room boy - old person - sales agent - notaris relative etc. Actually the outmoded and still often used idea of having a non revocable power of attorney with a local has many problems the major one being when it comes to real estate this is not recognised. Finally ask yourself whe your partner dies who will you deal with.... thier relatives who are likely to have thier hands out.

    Posted 1 year ago #
  5. shorty
    Moderator

    hi eagle

    you make a valid point - nominee names and irrevocable powers of attorney are 'come on' attempts to con/satisfy foreigners into thinking they have freehold title. As you point out, these arrangements have no basis in RI law - foreigners cannot own land. if push comes to shove, such documents are useless.

    land can be leased. if you've done the necessary checks/due diligence on the certificate holder and the land, you've at least got a legal basis for action should things go belly up.

    there are villas/homes being offered as 'freehold'. again if you do the checks, the kosher ones are selling what is similar to oz company title - you buy a share in the company for exclusive use of a particular dwelling. under RI law the majority shareholder must be Indonesian.

    the biggest concerns here are..

    * the developing company - in for a quick quid? - probably. what happens after/when they on sell? - which they probably will.

    * ongoing maintenance of common property. who is responsible? what happens if the RI developing partner sells? things rot, rust, fade and fuck up very fast in this climate.

    *what is your liability for future problems/upgrades of common property? remember these responsibilities/liabilities are spelled out under oz law. there is currently no RI law covering these things.

    * why would this development be any different from the usually lax maintenance of previous properties?

    so sotron....

    you mention an indonesian partner. if this is a wife/husband/defacto/same sex what ever,you've invested emotional trust in this person. if this is what you both want, then go for it. why should your trust and commitment be geographically based.

    if you're sure of the commitment to bali and your partner, buy it it their name after thorough checks on the title/certificate.

    ps.consider looking at potential property in the wet season. don't let the picture postcard colour or disguise problems.

    Posted 1 year ago #
  6. simens
    Member

    @eagle
    YOu have removed all the option to use a person for he sake of property purchasing there...
    All the answers are still confusing that who should be chosen and who should not be ?
    It would be good if a native from there clarifies this in legal terms.

    Posted 1 year ago #
  7. Balisurfing
    Member

    Get someone reputable to do proper due diligence. I can recommend someone. You need an imb (planning permission) before you start building and legal road access. Ensure you get a 50 or 75 year lease with a reputable notaris and realise you can't own the freehold and then all should be good.

    Shorty and eagle have both provided good information - read their advice carefully and remember caveat emptor.

    Posted 11 months ago #

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