Why is the house leased for 17 years?
In Indonesia, a foreigner can not own a land directly, they can only lease it.
Therefore, most properties are leased for periods of 15 to 30 years. At the end of the leased term you can extend for another period according to negotiations with the landlord.
How can I ensure that I get property clear of all leans or obligations?
In Indonesian real estate transactions there is a single Notary (a certified lawyer/counsel) who is aneutral third-party and paid a fixed 1% of the transaction proceeds.
As part of his/her responsibilities, the Notary must conduct a thorough due-diligence process to inspect the land ownership, property ownership, building permits, and make sure that all governmental approvals are in orders and that there are no leans or obligations on the title. If such leans or obligations are found, they must be disclosed, written into the agreement and addressed.
The Notary has completed that due diligence process and Dream Villa is clean from leans or unknown obligations.
The notary prepared a lease agreement and it should be reviewed by the Buyer (or the buyer's legal advisor) before signing the agreement.
What would be the process of closing the sale?
1. The seller will send a Memorandum Of Understanding (MOU) to the buyer which details the transaction details.
2. Buyer shall sign the MOU and fund 20% of the purchase price to an escrow account held by the Notary. This gurantees the sale.
3. Notary will send to Buyer the Leasehold Agreement for review.
4. Once the Leasehold Agremeent has been finalized, signed and the balance of the purchase price (80%) was funded to the escrow account, the ownership is declared fully transferred to the Buyer and the Leasehold Deed is provided to the Buyer.
5. Notary will notify the management company of the Change of Ownership and introduce the Buyer to the management company. All future rental income would be received by the Buyer.
How long would it take to complete the purchase?
Closing of Leasehold Deed in Indonesia is a pretty straight forward process as it doesn't include land registration and is a private transaction between two parties. It can take between 1-3 weeks to complete the process from start to end.
Why is the current owner selling the property?
The current owner owned and lived in Dream Villa for 7 years. After a magical period in Bali they have decided to move back home to Europe and therefore looking for a new owner for thier beloved home.