| Buying Bali Property |
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| Buying Bali property is an attractive investment option for foreigners although it can be complicated. Foreign ownership of land is not possible, but condominiums are the most common method for foreigners buying Bali property. Below are Healy Consultants' services involved in buying Bali property, including those specific to legal matters: | ||||
1.
| Healy Consultants works with international entrepreneurs and property investors to efficiently manage the process of buying Bali property, and for selling property in Bali. Services are offered across the sectors of i) Residential real estate or for ii) Commercial real estate | |||
2.
| Buying Bali property is allowed for foreigners under three methods. The three options are as follows:
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i)
| Using an Indonesian nominee - The nominated Indonesian buys the property and is registered on the land title deed. The Indonesian nominee has to also complete other legal agreements including a loan agreement which shows the foreigner has lent the nominee the purchase price for the transaction, an irrevocable power of attorney which gives the foreigner the authority to sell, mortgage, lease or otherwise deal in the land and a permanent right of use which gives the foreigner the right to occupy and use the property.
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ii)
| Having a Leasehold title granted to a foreign individual - For a foreign individual permanently based in Indonesia, that has a KITAS working visa, they can enter into a 25 year lease renewable for a further 25 years. This lease is direct with the local owner. This is commonly used for retirees relocating to Bali or foreign companies requiring residence for their employees working in Bali. | |||
iii)
| Using a Penanaman Model Asing (PMA) company - A PMA company can have 100% foreign ownership but this form of title has lease for up to 30 years with subsequent extensions of 20 years and 30 years an option. Hotels commonly use this form of ownership. | |||
3.
| Healy Consultants will appoint and supervise a local lawyer to ensure all legal requirements for buying Bali property are managed correctly and the strengths of local laws are utilized to protect the assets of our client. More specifically, the legal processes can include:
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i)
| Creating a legal engagement agreement between our client and the lawyers outlining roles and responsibilities, terms and conditions and legal fees related to buying Bali property.
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ii)
| Liaising with a local lawyer to appoint a reliable and respected Notaris. A Notaris is required for property transactions and each Notary Public has authority jurisdiction/region and can only register documentation in that particular region.
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iii)
| Collecting the necessary due diligence from the lawyer to ensure our client is adequately protected when buying Bali property.
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iv)
| Monitoring the key legal dates of execution within the buying process, including settlement date.
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v)
| Reviewing all legal documents to ensure our client is adequately protected when buying Bali property.
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vi)
| Ensuring our client’s lawyer is frequently communicating with all parties to the property transaction, including mortgage bank, relevant government authorities and counterpart lawyers.
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| Contact Us | ||||
For further information on the Bali residential property market, call our Singapore office at (+65) 67350120 or contact us at email@healyconsultants.com | ||||
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