Process of Buying Property in Bali

1. Provide your chosen agent and the land owner a Signed “Offer to purchase real estate” legal Document

To let both the agent and the landowner know that you are serious about what you are doing give them a contract to sign.

2. Choose a notary PPAT/Public

You, the buyer, may select a notary for the process. The fee of a notary is usually between 1% and 2.5% from the negotiated price. The legally binding document that you sign is in Indonesian language, it can be translated into English or any other language, but the Indonesian one is the most important. If in a situation the agent is the third party, he will prepare a preliminary purchase and sales agreement that is to be signed by all parties. The notary will transfer the agreement into the binding purchase and sales agreement.

3. Send a deposit

Do not, under any circumstances pay the deposit to the land seller. At first, send an agreed deposit (usually 10-25%) to the notary’s escrow account to be held there. Using a escrow system is a must for buying property in Bali.

4. Sign a biding “Purchase and Sale” agreement

Both the buyer and the seller have to agree on the price and the conditions for property transaction to sign a preliminary binding Purchase and Sale Agreement or a Binding Leasehold Right Agreement (Perjanjian Pengikatan Jual Beli or Perjanjian Pengikatan Sewa Menyewa) to officially reflect and agree on the term and conditions on the proposed transaction.

To ensure that their negotiated terms and conditions are adequately expressed in the Binding Sale and Purchase Agreement or Binding Leasehold Acquisition Agreement, we suggest that a buyer or seller hire an independent legal advisor.

5. Notary conduct due diligence

This is one of the most important task before completing the purchase. Notary will have to conduct due diligence to ensure that the seller is the legal owner and has the right to sell/lease the property. Also notary check is the land is legal to build, does not have any outstanding debt or other legal encumbrances or attachments. Land document (such as the title deed), building construction permits, title search (where is the land located) should all be checked and confirmed. This usually takes 7  days and it is not to be rushed to make buying property in Bali safe and stress free.

6. Sign a ‘Sales and Purchase Deed’ (AJB) or ‘Leasehold Deed’ (Akta Sewa Menyewa)

The parties must subsequently enter into notarial documents representing the acquisition of the property in the form of either a Sale and Purchase Deed (Akta Perjanjian Jual Beli or AJB) or a Leasehold Deed (Akta Sewa Menyewa), in order to formally conclude the acquisition of the property as contemplated under the binding agreement.

7. Take Possession of The Property

After you have sent the complete payment and paid all the necessary transaction fees and taxes, the respective parties will be transferred the title of property and copies of deeds.

Leasehold

There is no legal registration at the land office needed for leasehold acquisitions. Only the lease deed copies will transferred to the proper parties.

Right to Use (Hak Pakai) over Freehold (Hak Milik) Acquisitions

A Deed of Grant of Hak Pakai (Akta Pemberian Hak Pakai atas Hak Milik) between the owner/designee of the Hak Milik and the foreigner is executed by the notary in which the owner of the Hak Milik grants the owner of the Hak Pakai title to the foreigner.

The owner of Hak Pakai can also prepay to the owner of Hak Milik a number of negotiated twenty-five year renewals by separate Notarial Deed.

Disclaimer:

Since we are not trained legal advisers, we can only present a general understanding of how buying property in Bali works. We work with only the best notaries in Bali, so we can recommend reliable ones.

Recommended Notaries for buying property in Bali:

• Eddie Nyoman Winarta SH Notaris & PPATAddress: Jl. By Pass Ngurah Rai No.5, Kuta, Badung Regency, BaliPhone: (0361) 759776Location map: https://goo.gl/maps/zPBK8b8ich92
• Evi Susanti Panjaitan SH Notaris & PPATAddress: Jl. Sunset Road, Kuta, Badung Regency, BaliPhone: (0361) 757200Location map: https://goo.gl/maps/JgchdvWTEi92
• Harry Prastawa BF SH Kantor Notaris & PPATAddress: JL. Raya Kerobokan 26, 80361, Kerobokan Kelod, North Kuta, Badung Regency, BaliPhone: (0361) 732922Location map: https://goo.gl/maps/XSC7XW53xW22
• Erma Novita, SH.M.Kn NotarisAddress: JL. Raya Kerobokan, No.71 A, Seminyak Kuta, Banjar Taman Kerobokan Kelod (opposite of Jl. Beraban), North Kuta, Badung Regency, BaliPhone: 0812-7000-0137Location map: https://goo.gl/maps/JFYxgp4Dvd42