Bali A List

Checklist for buying a Leasehold Villa in Bali

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Appoint a Real Estate Agent you trust. (Bali A List, of course)

“ With your Agent (us) appoint a top Notaris.

If you don’t want to do the above and decide to do it yourself, make sure you check all the boxes

below.

“ Walk around the property and check all the corners.

“ Get a copy of the Sertipikat (title) if it is a first lease or the current lease, if you are sub-
leasing.

“ Find somebody educated and reliable who can translate all the documents for you.

“ If a first Lease, Check that the person who claims to be owner’s name is on the title.

“ Check the owner’s KTP (ID card) to make sure it matches with name on title and that the

owner is not deceased.

“ Check that the villa has an IMB plate (Like a car number plate displayed on the front outside

wall. This is proof the building has a proper building license. If it doesn’t have one, don’t buy

it.

“ Check electrical capacity. 4400KVa is probably the absolute minimum if you are going to run

aircons in every room.

“ Conduct a rudimentary check of the wiring, pool pump, water pressure etc.

“ Check for rising damp.

“ If thatched roof, check age of roof. (generally a thatched roof will last a maximum of 16

years, if properly serviced).

“ Check for rising damp and leaks in general.

“ Check whether the water is government supply or from a well (well is generally preferable).

“ Check with the land department (BPN) to make sure the property is not in the path of a

proposed expressway, etc.

“ Check that the land has proper access, either public road or freehold right-of-way.

“ Don’t take anybody’s word for anything.

“ Once you have decided to buy, do not give the seller any money directly.

“ Now find a top-class Notaris with the initials PPAT after their name (which means they are

authorized to enact property title transfers). One who can give you accurate translations

of documents, as well.

“ As a general rule, do not use the seller’s notaris. Do not give the seller’s notaris any

deposit money, either.

“ Discuss the property with your Notaris and give them a copy of the Sertipikat. And/or the

existing lease. Ask the Notaris (or you Agent) to draw up a draft Binding Agreement,

containing all the conditions you have agreed with the seller.

“ Make sure a building inspection is part of the conditions.

“ Insist on an inventory of the contents.

“ Arrange for the owner to sign the agreed final Binding Agreement with you, witnessed by

“ Pay to the Notaris the 10% deposit to be held in escrow until the Notaris has completed due

“ Do not pay the deposit to the owner, under any circumstances.

“ Sign the Lease or Sub-lease in front of the Notaris, with the seller

“ At the same time, pay the other 90% owed for the purchase.

“ Later, when the documents are ratified pay the Notaris fee (1%).

“ Tax. With a leasehold purchases, by law, the 10% applicable tax is the responsibility of the

the Notaris or the Agent.

diligence using the original documents.

seller. But, more and more, this tax is shared between seller and buyer (5% each). Up to you

to negotiate.

What a rigamarole! Much easier just to do steps 1 and 2 and let us look after the rest. And remember,

if we don’t have the villa you want in our listings, we will find it for you. We work for you for free. The

seller pays our commission. Remember, you are in a foreign land. Things are much different here.

 

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