Support in the process of buying/selling real estate in Indonesia
Before drafting agreements and preparing the deal with a notary, it's crucial to ensure that the land on which construction will take place—or where an existing property is located—has been properly verified.
Verification Process
For a detailed overview of the verification process and required documents, refer to this link: Land Verification Process - https://bali-legal.com/en/proverka-zemli-en.
Understanding Risks
Before investing and drafting a contract, it's advisable to study the main risks associated with purchasing or leasing property from developers in Bali. Learn how developers may mislead investors here: How Developers Cheat in Bali - https://bali-legal.com/en/kak-obmanyivayut-developeryi-na-bali-en.
Common Notary Errors in Lease/Purchase/Investment Contracts
Discrepancy in land plot numbers between the contract and certificate (or forgetting to include it altogether).
The seller/developer lacks necessary construction permits or building operation permits (PBG and SLF).
When leasing/purchasing part of a plot, there's no specific mapping reference - only approximate plot dimensions are mentioned.
Tax payment (approximately 10%) is imposed on the buyer. More about taxes and who should pay - https://bali-legal.com/en/kupit-i-postroit-nedvizhimost-na-bali-inostranczu-en.
Missing land surveying when delineating parts of the plot for the investor.
Very strict payment terms or no installment options. Often investors are pressured to pay the full amount within a very short initial period.
Low penalties for delayed completion by the developer.
Vague descriptions of furniture, appliances and their specifications to be included upon handover.
The deal is conducted in the owner's name but without their participation.
Typically, investors are rushed to make initial payments, citing "the uniqueness of the location" and "a queue of clients." This is, of course, NOT TRUE!
How to Organize the Verification and Agreement Process With Us
What We Need From You:
Land certificate for the relevant plot.
Letter from the land committee confirming certificate details and absence of encumbrances.
Letter from the land committee about the plot's zoning.
Copies of passports (ID) of both parties.
Draft contract from the seller (if unavailable, we can provide one).
Technical assignment for verification*.
*Our standard verification focuses on Indonesian law compliance and data accuracy. If you want to add specific points to the technical assignment, please let us know.
If you don't have all these details, you can provide us with the contacts of the seller's lawyer/notary/assistant, and we'll request the necessary information ourselves.
Depending on the deal type, the following might also be needed:
Building permit.
Certificate of compliance.
For more information, check our comprehensive guide on construction on the island: Buying and Building Property in Bali - https://bali-legal.com/en/kupit-i-postroit-nedvizhimost-na-bali-inostranczu-en.
Verification Results
You will receive a comprehensive file with corrections and points to pay attention to when signing the contract. This file will be available in English and accessible to both parties involved in the transaction.
After making the necessary changes to the contract, you can proceed to sign it with the notary.
Additionally, a separate conclusion will be prepared for each file. You can view a sample in the slider below.
Standard Timeline and Costs for Lease or Investment Contract Verification
Standard verification period for lease or investment contracts (if the land has been previously verified - https://bali-legal.com/en/proverka-zemli-en) is 7 working days.
Cost for contract verification/drafting with Russian-speaking support - 7,000,000 IDR.
Recently, we've noticed an increase in clients trying to finalize deals on short notice, often pressured by sellers or developers.
In such cases, we usually request to either postpone the deal or, if that's not possible, we have to decline our services.