Bali Property purchasing made easy

 

Property Title and their Requirements

 

Hak Sewa/Most commonly known as Leasehold (Foreign ownership)

Hak Sewa is most commonly known as the Leasehold ownership title, which grants the right to occupy someone else's property (land or villa) for a duration of time. Foreigners can legally own a property with this title. In practice you purchase the leasehold rights remaining on the contact including any and all extensions granted on the master lease agreement.

 

Requirements:

-      Passport

-      ID Card

-      Money in the bank (Please note that all leasehold ownerships are done upfront for the remaining duration (Years) on the lease and not paid in yearly payments – Full settlement as advertised  

-      No loans available in Indonesia to foreign investors  

-      No payment plans unless it’s a Off plan or under construction property that has a construction period left on the build.

 

Hak Milik/Most commonly known as Freehold (For Indonesian citizens only)

Freehold ownership title, which grants permanent ownership of a property. Hak Milik is registered in the Land Office under the owner’s name, with every ownership transfer and title conversion recorded in the certificate itself as well as the Land Office. Only Indonesian citizens are allowed to hold this title.

Requirements:

-      ID card

-      Please note – No foreigner can hold a Freehold title

-      Mortgages available to Indonesian citizens only

 

Hak Pakai

Similar to Hak Sewa, but involves the conversion of the Hak Milik into Hak Pakai in the Land Office which will cost more time and money. Hak Pakai is less used than Hak Sewa due to other factors including Hak Pakai properties may only be used for private residence.

 

Requirements:

-      Passport

-      ID card

-      Ketas

 

Hak Guna Bangunan – PT/PMA

 

Subject to limitations, including:

-      Only one plot of land can be purchased under a single name.

-      The maximum land area allowed is 2.000 m²

This title is reserved for commercial purposes, converted from Hak Milik, and the ownership is transferred to either an Indonesian-owned or foreign-owned company (PT. PMA). Using this title is the most secure way in owning a property for foreigners. An HGB is valid for up to 70 years, and comprises 30 years of initial validity + 20 years of extension + 20 years of renewal. It can be reverted to Hak Milik if the ownership is transferred to an Indonesian citizen

 

Requirements:

-      Passport

-      ID card

-      PT/PMA

 

What is The Buying/Leasing Process In Bali?

Buying Process | Leasehold / Hak Sewa

1.   Agree on price and purchasing conditions

2.   Draft up MOU / Offer / Letter of Intent

3.   Deposit payment

4.   Notary due diligence

5.   Signing of Lease agreements

6.   Finalize payment as per agreement

7.   Handover 

 

Buying Process | Freehold / Hak Milik / HBG / Hak Pakai

1.      Agree on price

2.   Draft up MOU / Offer / Letter of Intent / PPJB

3.   Sign MOU / Offer / Letter of Intent / PPJB

4.   Deposit payment

5.   Notary due diligence

6.   Finalize payment and tax

7.   Sign AJB

8.   Title Deed transfer

9.   Handover