Please note that the information supplied here is to be used as a guide only. For exact information please consult a lawyer or notary in your area and seek advice from foreigners who have been living in Bali for some time.

FREEHOLD

*NEW LEGAL PACKAGE BASED ON INDONESIAN FREEHOLD LAW*

The most widely used and most effective option is to use an Indonesian name holder (a nominee) for your property, with whom you make legal agreements.
CV. Puri Developments can employ the services of an Indonesian notaris who provides the new legal FREEHOLD PACKAGE for buying your property in Bali.
Updated in April 2004 by an internationally renowned lawyer with thorough knowledge of the Indonesian Property Laws, this trouble-free package makes you totally independent of the Indonesian nominee.

The agreement basically consists of a loan agreement with 27 clauses. Amongst other clauses it is stated that you (the Lender) has lent money to the Indonesian nominee (the Buyer) with the sole purpose of purchasing the desired land and property. It is also clearly stated that the money borrowed has been used by the Buyer for this purpose. Furthermore, it is defined that the loan cannot be repaid with money, but can only be repaid in full with the land at any time desired by the Lender.
The agreement provides a clause stipulating that all necessary future desired agreements shall be made, such as a lease agreement and an agreement to divide the ownership certificate into any desired number of smaller title holder certificates (which makes it possible to develop projects on the land and sell or lease pieces of it to others).
The agreement also contains a clause in which is stated that as soon as Indonesian laws regarding the ownership of property change in favor of the foreigner, the title of the ownership documents will be transferred to your own name if desired.
Still another clause of the agreement gives the Lender Full Power of Attorney to build on, make improvements, use and sell the land, including all improvements made by the Lender, at any time desired by the Lender. Because of this Full Power of Attorney the Indonesian nominee need not to be present when the title of the ownership documents are transferred at the notaris office, nor at any time is the signature of the Indonesian nominee is needed.
All profits resulting from the sale of the property will be paid directly to the Lender without the reduction of any costs having to be paid to the Indonesian nominee.

(In effect in Bali since March 2004)

A FOREIGNER CAN LEGALLY PURCHASE/OWN IN HIS/HER OWN NAME and construct a house built only on land with the "right of use" (Hak Pakai).
Ownership is limited to 25 years, and is extendible for another 25 years provided that the foreigner remains an Indonesian resident or non-resident (domiciled in Indonesia at particular times) or meets the status requirements (in possession of the appropriate visit and immigration stamps in his/her passport*).

* The appropriate visa status is readily available at any number of local agencies in Bali.

If the foreigner permanently departs from Indonesia, the property must be sold or transferred within one year after departure. If the foreigner or his family does not use the house for more than 12 consecutive years, then the foreigner forfeits the "being domiciled" status, for the purpose of owning residential property.

CV. Puri Developments is committed to quality and client satisfaction. We really do care about the workmanship that goes into every private home we build. This applies to every worker on our experienced crew. We welcome any comments or questions you may have and will attempt to honor any special requests.
 
All prices shown on this site are for freehold title status.
All property on this site is available for either freehold or leasehold title.
Call or email us for more information.