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 Contracts
Discrepancies in Land Plot Numbers: The number in the contract does not match the certificate.
Lack of Necessary Permits: The seller/developer may not have the required building or operational permits (PBG and SLF).
Vague Descriptions for Partial Leases: No specific points on the map are provided when leasing or purchasing part of a plot.
Transaction Without Owner’s Participation: Deals are conducted on behalf of the owner without their involvement.
Lack of Land Surveying: Needed when delineating parts of the plot for the investor.
Tax Obligations: Generally, the buyer is responsible for paying taxes (around 10%). More on taxes can be found here: Buying and Building Property in Bali - https://bali-legal.com/en/kupit-i-postroit-nedvizhimost-na-bali-inostranczu-en.
Strict Payment Terms: Unreasonable conditions for installment payments or pressure to pay the full amount quickly.
Low Penalties for Delays: Minimal penalties for the developer's failure to meet deadlines.
Vague Inventory Descriptions: Poorly defined items such as furniture and equipment included in the sale.
Typically, investors are rushed to make initial payments, citing “the uniqueness of the location” and “a queue of clients.” This is often misleading!
How to Organize the Verification and Agreement Process with Us
What We Need From You:
The land certificate for the relevant plot.
A letter from the land committee confirming the details in the certificate and stating there are no encumbrances.
A letter from the land committee about the zoning of the plot.
Copies of passports (ID) of both parties.
A draft contract from the seller (if unavailable, we can provide one).
A technical assignment for verification (we focus on legal violations and compliance; please specify if you want to add any points).
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.
Additional Documents May Be Required Depending on the Deal::
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/kupit-i-postroit-nedvizhimost-na-bali-inostranczu.
Results of the Verification
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: If the land has already been verified (see Verification Process - https://bali-legal.com/en/proverka-zemli-en), the review of a lease or investment contract typically takes 7 working days.
Cost: The fee for contract verification or drafting with Russian-speaking support is 7,000,000 IDR.
Urgent Requests
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.
Получить бесплатную консультацию
Leave a request for a free consultation and our manager will contact you as soon as possible