BUYING ADVICE
1. Firstly, let PROPERTIA BALI know that you want to make an offer and, most importantly, insist that you wish to sign a contract called a ITP (Intend To Purchase). This lets the agent and the seller know you are serious. After signing the ITP (Intend To Purchase) we will approach the seller with the offer. If the seller accepts the offer we will have a signed ITP (Intend To Purchase) by both parties.
Please note! – even though you have viewed a property with another agent you will still be able to purchase it with PROPERTIA BALI. It’s simple, just contact us and we will make sure your purchase will be pleasant and professional.
2. Next step is to chose a notary. The notary has to be chosen by you as the buyer and the fee charged by the notary is usually between 0,8% – 1% of the agreed selling price. A new more detailed sales and purchase agreement is drawn up by the notary in Indonesian and in English. It has to be in both languages to legally be binding.
3. Then transfer the agreed deposit (usually 10%) to be paid and held in the notary escrow account. Do not, under any circumstances pay the deposit to the seller (owner) or the agent. Once a deposit has been received, the seller then has to agree to take the property off the market.
4. After a buyer and seller have generally agreed upon the price and all other terms and conditions for a property transaction, the parties usually sign a preliminary agreement, a binding sale and purchase Agreement or a binding leasehold right agreement (Perjanjian Pengikatan Jual Beli or Perjanjian Pengikatan Sewa Menyewa) to formally agree and reflect the conditions of the proposed transaction.
5. Following execution of a binding agreement, the buyer would, through the legal representative or notary, conduct due diligence on the property. The due diligence is done by the appointed notaries and take normally 2-3 weeks.
6. In order to formally conclude the acquisition of the property as contemplated under the binding agreement, the parties would subsequently enter into notarial documents reflecting the acquisition of the property.Until full payment of the agreed selling price is made and any other conditions for completion are met, the notary would hold the land certificates or deeds relating to the property transaction in escrow
7. Once the seller has received full payment and all taxes accruing from the transaction have been paid, the title of the property is transferred and copies of the deeds released to the respective parties.
SELLING ADVICE
1. Selling your property in Bali can be very confusing. Choosing the right real estate agent is the most important things to remember. Even though you can list it with as many real estate agents you want we don’t recommend doing so. Choose 3-4 real estate agents who you have met and who you are confident will represent you in a professional manor.
2. Selling a property in Bali involves some costs besides the real estate agents fee. Especially tax. There are several types of taxes and fees incurred by the property seller.
3. The Indonesian government, like any other government, imposes taxation obligations on foreign investors and it is therefore essential to obtain qualified legal advice from a lawyer/legal advisor.
4. The taxation depends on which property you want to sell. Here is an overview of the taxes you must pay whether you are selling your villa or land as freehold or leasehold.
– Leasehold property or leasehold land 10% income tax (PPH)
– Land & Building tax has to be paid up to date when selling the property or land.
– Freehold property or freehold land 2,5% income tax (PPH)
– Land & Building tax has to be paid up to date when selling the property or land.
The above information is provided as a guide only. The above information does not constitute and is not to be relied on as legal and/or taxation advice. Before entering into any transaction you should always discuss the relevant Indonesian legal, regulatory and taxation obligations with qualified advisors.