Frequently Asked Questions

Most frequently asked question about properties in Bali

1. Contact your trusted real estate agency in Bali and submit your property requirements

2. Select your favorite properties and make an appointment for viewings

3. Submit a Signed ‘Offer to Purchase’ Document for your dream property to initiate the negotiation

4. Choose a Notary/ PPAT – after acceptance of your offer or ask your agent to make a recommendation

5. Sign a binding “Sale and Purchase” agreement to clarify the terms and conditions

6. Transfer a deposit to the notary escrow account (usually 10% of the purchase price) to secure your investment. With the receipt of the the deposit, the property will be taken off the market and restricted from selling to any third party.

7. Due Diligence – After your deposit has been received, the notary will start the process of due diligence which takes in average 14-30 days, depending on the property ownership title and the location of the property.

8. Completion of Legal Due Diligence – Once the due diligence is satisfactory, you can make an appointment at the notary to sign the final sale and purchase deed (Lease transfer deed). In case of a non-satisfactory due diligence, the notary will refund 100% of your deposit.

9. Sign and process balance payment – Once you have signed the final “Sale and Purchase” deed (lease transfer deed), with the seller, in front of the notary, you can transfer the balance payment to the nominated bank account of the seller.

10. Take Possession of the Property – once the final payment has been received by the seller, you will meet at the property for a handover.

Now make yourself feel at home!

Please contact Unreal Bali, should you require any services in regards to buying a property in Bali.

Here you find the most common areas to live on the island:

Canggu
Canggu has long been known as a bohemian surf town​ that is mostly free of the clubs and bars​ of neighbouring Seminyak and Kuta. ​In recent years some wonder if it will also head in a similar direction given Canggu has experienced a flurry of new development that has ​spread​ across the island​. ​Although Canggu is one of the island’s desirable locations for property purchases, rampant development​ comes with some traffic issues.​ Still, amongst ​the ​narrow lanes, trendy  ​restaurants and ​enchanting shops, provide a lifestyle that has ensnared many. ​

Umalas
The curious and popular district of Umalas ​was once considered rather hidden, but today the location wedged ​between trendy Seminyak ​and​ the Kerobokan-Canggu triangle is a desired community for many who appreciate its “quiet-energy.” ​The virtue of Umalas many say is its​ convenience ​to reach all that one needs in an exotic bubble such as what is arguably the south’s top restaurants, from fine French to Indonesia; high-end spas both traditional and arcane and hair salons aplenty simply because Umalas residents are fashionable and social and always out; there are local designers too purveying hand-stitched fashion and textiles. There’s also easy access to Batubelig Beach for sunsets and morning runs. 

Sanur
Sanur was often referred to as “snore” because of its sleepy nature. Although these days its popular for not just families who take advantage of the many K-12 schools but for those who appreciate its languid pace, beach community feel and views of Mt. Agung and Nusa Penida. An attractive feature to Sanur is its curving oceanside esplanade (recently widened) and enjoyed by locals and expats for walking, running and cycling (avoid weekends).

Ubud
It’s often said that Ubud is one of those special destinations where a holiday can turn into a stay of weeks, months and for many, years. The in-the-know and colorful expat community of this highland hamlet will tell you the languid nature of this artistic Balinese town is where traditional Balinese culture permeates in every step at every moment despite its transformation over the past 20 years. Ubud is​ a place of ritual like the offerings adorn​ed in​ the​ narrow​ streets where the​ ubiquitous and​ hypnotic ​sounds of ​gamelan are​ part of ​everyday life. 

Bukit
Known for salt-making and scattering of fishing villages, the Bukit Peninsula (meaning ‘hill’ in Bahasa Indonesia), became popular after the boom in Kuta and Seminyak and today is where numerous international beach resorts like the Four Seasons are dotted along its shoreline. The Bukit starts from Jimbaran Bay, which is recognized for its ​4km-long arc of sand ​replete with ​numerous​ warungs to grab a drink and el fresco seafood dinner or rent a sun lounger or surfboard for the day.

Seminyak
North of Kuta is Bali’s most touristed destination and playground for visitors who come for dining, surfing, clubbing, shopping and wrapped in as much luxury as they can afford. Seminyak is cheek-to-jowl with a dizzy collection of dining options, cafes, clubs and cocktail bars, most open for business from just after dawn to long after dusk. Most visitors will have a daily routine that might start with a morning beach walk, followed by a spa session and lunch (with wine of course), shopping in the afternoon and bar hopping in the evening and finally recovery in their private villa only to repeat the following day. 

Tabanan
Despite development from south Bali that has encroached further west from Canggu, the island’s true west remains far less visited leaving its wild beaches, verdant surroundings and rice fields largely intact.

Hak Sewa or the leasehold title gives the holder the right of use for an empty plot of land or the building(s) on someone else’s land for a fixed period of time. A Leasehold Right title can be granted over land currently held under a Freehold title (Hak Milik), Right to Build title (HGB) or Right to Use title (Hak Pakai). Indonesian individuals, Indonesian legal entities and foreign individuals and legal entities may acquire Leasehold (Hak Sewa) properties. The period of lease is generally between 1 to 25 years and usually there is an option to extend the lease, which is specified in the agreement between the land owner (Lessor) and the who rents the property (Lessee).

Hak Sewa cannot be used in the form of a mortgage, nor can it be registered with the National Land Agency. Subject to the conditions of a lease contract (lease deed), a foreigner may lease an empty plot of land, build permanent buildings on the land and resell the remaining balance of the lease term to any third party by way of a sub-lease or transfer of Leasehold Right.

Commercial leases of office space, factory buildings, restaurants, hotels, shops and the lease of residential premises are all examples of Hak Sewa titles. Residential properties can include apartments, condominiums, villas and houses.

Hak Milik or Freehold is the strongest form of land title ownership in Indonesia. Only individuals of Indonesian Nationality can own land under the Hak Milik title. Consequently, neither limited liability companies (PT/Perusahaan Terbatas) nor foreign individuals may obtain land with a Hak Milik title. Subject to zoning restrictions, the Hak Milik title owner can use the land for any purpose, although it does not entitle the owner to exploit the natural resources found on or under the land. The title has no limit and may be sold, gifted, exchanged, handed down by a will and may also be used in the form of a mortgage.
Foreigners may, however, acquire land under a Hak Milik title in another form of entitlement called Hak Pakai or Right of use.

Hak Guna Bangunan (The right to build) or HGB title allows the holder to construct and own buildings or other structures on state-owned land (Tanah Milik Negara), freehold land (Hak Milik) and HPL (Hak Pengelolaan) land. This is the most common title for residential, commercial and industrial properties. An HGB title can be owned by individuals of Indonesian Nationality, Indonesian legal entities, including Foreign Capital Investment Companies (Penanaman Modal Asing/PMA), or Domestic Capital Investment Companies (Penanaman Modal Dalam Negeri/PMDN). Thus, any legal entity such as limited liability companies (Perusahaan Terbatas/PT) which are established under Indonesian Law, with domicile in Indonesia, may obtain a property with HGB title. However, the HGB title is not available for foreign individuals.

The title is granted for an initial period of up to 30 years and can generally be extended for an additional period of 20 years. Subsequent extensions are at the discretion of the state and may be renewed for another 30 years. An approved capital investment company (i.e., PMA or PMDN company), may obtain HGB rights for a period of 80 years (i.e., 30-year initial term, plus 20 year extension term, plus 30 year renewal term).
HGB title over Freehold (Hak Milik) land is valid for a period of 30 years only. Any extensions beyond 30 years would be subject to a new agreement with the landowner and registration of a new HGB/Right to Build title over the privately-owned land.
An HGB/Right to Build title can be sold, gifted, exchanged or handed down and/or encumbered by a mortgage.

Hak Pakai or the Right of Use is a title over Freehold land that allows the holder to use the land, including (subject to permitting requirements) the right to construct buildings. A Hak Pakai title may be held by foreign individuals and foreign representative offices as well as Indonesian citizens and legal entities established under Indonesian law. For foreigners to acquire a Hak Pakai title, they must be a resident or domiciled in Indonesia and therefore must hold a limited stay permit (KITAS) or a permanent stay permit (KITAP).

According to the Government Regulation (PP) no. 103 Year 2015, the term of granting rights to foreigners is specified to having one single property with a maximum land size of 3000 m2. Foreigners can acquire usage rights for 30 years. If the period has expired, it can be extended for another 20 years, then after a span of 50 years, the foreign national may renew his usage rights for a period of 30 years. In total, the given Right of Use period can reach 80 years.
Under current laws, a Hak Pakai title is the only registered form of entitlement over land that can be granted to a foreign individual which can be evidenced by a land certificate reflecting the name of the foreigner and the term on the certificate which serves as formal evidence of this form of ownership right. In accordance with Indonesian law, this title can be sold, gifted, exchanged and/or passed down, unless the deed of conveyance specifies otherwise, but under a Hak Milik title, it cannot be used in the form of a mortgage.

For a Freehold property transaction (Hak Milik)
The buyer: Land and building acquisition duty (BPHTB)
= 5% of NJOP value (government assessment)

The seller: PPh income tax = 2.5% of NJOP (government assessment)

For a Leasehold property transaction (Hak Sewa)
The buyer: no Tax implications

The seller: final income tax of 10% (Indonesian nationals or KITAS / KITAP holders) and
20% (foreigners without KITAS / KITAP)

There is only one way for foreigners to securely own property in Indonesia outright, instead of leasing real estate for a certain period of time:
By setting up an Indonesian legal entity- a PT PMA.
The ownership title of the property is called Hak Guna Bangunan (HGB). The Right to Build and Right to Use(Hak Pakai) titles provide you with clear legal grounding.

A non-Indonesian citizen cannot own land in Indonesia. However, a foreigner can acquire a leasehold title (Hak Sewa) to a land and building for a defined period of time. This title can be held in your own personal name and is 100% legal and protected by the Indonesian law.

A real estate broker is a licensed real estate professional in their own right in addition to being a licensed real estate agent. A real estate broker holds expertise that can help people with real estate transactions, and like an agent, a broker can also assist with selling or buying real property. The big difference between a broker and an agent is that it is a broker’s duty – whether working for a brokerage or solely for themselves – to ensure the real estate transactions are lawful, that all paperwork is correct and complete, and that all monies, such as funds in escrow accounts, are recorded and reported properly.

All real estate agents must work for a broker. So, think of a broker or brokerage firm) as the umbrella that covers individual real estate agents, like one you’d use to sell your home or help you purchase a property. While a real estate agent handles clients, listings and sales, a broker ensures all transactions are legally compliant.

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