The property market in Bali is progressively attracting more and more foreign investors to build a healthy property portfolio and increase their capital gains. If you are reading this right now, it is likely that you are also one of them or are thinking to get your hands on a beautiful house in Bali. But, before buying any property, you need to get familiar with Bali property ownership by foreigners.
Here are the steps that will guide you to acquire your property in Bali. This article is especially essential for first-time home owners or rookie investors in the property market.
Cekindo has simplified the journey with the following steps and hoping that the shiny new property will soon belong to you.
1. Sign and Submit Offer-to-Purchase Document
This document serves to inform the seller or agent that you would like to make an offer and sign a contract.
2. Pick a Notary
As a buyer, you can choose the notary and the notary fee often falls between 1% and 2.5% of the selling price. Then, the notary shall draft the purchase and sale agreement in both Indonesian and English or other languages if required. The Indonesian agreement is the legally binding version.
You will need a preliminary purchase and sale agreement from the notary as well if a selling agent is involved. In this case, all three parties must sign the agreement.
3. Make a Deposit
Send the deposit ranging from 10% to 25% of the selling price. The amount will be held in the escrow account of the notary. You must not transfer the deposit directly to the seller or the property owner. The seller will remove the property from the market upon the receipt of the deposit.
4. Sign a Purchase-and-Sale Agreement
When the price and other terms are agreed, all parties will sign a preliminary agreement, purchase-and-sale agreement, and leasehold right agreement to formally and legally acknowledge the transaction.
A legal consultant is highly recommended for both the seller and the buyer to ensure that the agreed terms are accurately stated in those agreements.
5. Conduct Due Diligence
Then the buyer has to conduct due diligence on the property via a legal personnel. This is to determine that all terms and conditions are executed and fulfilled under the signed agreements.
6. Sign a Leasehold Deed or Sale-and-Purchase Deed
The transaction of the property acquisition will further be officially concluded to reflect the acquisition by having all parties involved in a leasehold deed or sale-and-purchase deed. The notary will not release the deeds and land certificates and hold them in escrow until the buyer has paid in full and met all agreed terms and conditions.
7. Own the Property
The property title will be transferred to the buyer once the seller has received the payment in full and all taxes related to the transaction are settled. The notary will then release the deeds to all parties.
Cekindo is a business and legal consulting firm that offers the best property acquisition assistance and legal advice in Bali. We have built our reputation on the strength of our expertise as well as client relationships. In addition to property legal consultancy, we provide a wide variety of business and legal services related to company incorporation, licenses, visa application, and many more.
You can rely on Cekindo and know that your property investment in Bali is safe. Our highly knowledgeable team is here to assist you in matters of property purchase and sale, drafting legal agreements, contract disputes, and set up your real estate and property business. Get in touch with us today for more information about Bali property ownership by foreigners by filling in the form below.