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Checklist for buying Leasehold land in Bali

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Checklist for buying Leasehold land in Bali
 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 todo the above and decide to do it yourself, make sure you check all the boxes below.
 Walk the land to see there are no obvious problems.
 Check the Patoks (government installed concrete corner pegs) to make sure they are there.
 If you are only leasing part of the land, make sure you measure or pace out the measurements.
 Find the property on Google Earth and check your plot.
 Get a copy of the Sertipikat (title)
 Find somebody educated and reliable who can translate the documents for you.
 If it is a first-time lease, establish the price and the length of the lease.
 Check whether there will be an option for a further lease at the end of the 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.
 If the land is being sub-leased, check that the original lease gives the lessee the right to sub-lease all or part of the property.
 Check the Aspek on the title to make sure the land can be built on.
 Check with the land department (BPN) to make sure the land is zoned for building and 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.
 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.
 Do not use the seller's notaris.
 Discuss the land and the lease carefully with your Notaris and give them a copy of the Sertipikat and any existing leases or sub-leases. Ask the Notaris to draw up a Binding Agreement, containing all the conditions you have agreed with the seller.
 Arrange for the owner to sign the Binding Agreement with you, witnessed by the Notaris.
 Pay the Notaris a 10% deposit to be held in escrow until the Notaris has completed due diligence using the original documents – especially checking, on the original lease that the land can be sub-leased, that access is provided and that there is an option for a subsequent lease.
 Complete the sub-lease in front of the Notaris, with the seller.
 At the same time, pay the other 90% owed for the purchase.
 Pay your Notaris fee (1%).
 Tax. With a leasehold purchases, by law, the 10% applicable tax is the responsibility of the seller. But, more and more, this tax is shared between seller and buyer (5% each). Up to you to negotiate.
 NB. With leases, whatever the terms that the original lessee negotiated will be the ter
So much to look out for! Much easier just to do steps 1 and 2 and let us look after the rest. And remember, if we don't have the land 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.

Last Updated ( Tuesday, 27 May 2014 00:03 )  

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