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. Its 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.
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.