In Reply to: Lease question. posted by Made in Bali on Tuesday, 13. September 2011 at 09:58 Bali Time:
Before entering into any agreement talk to a Notaris or Lawyer who can explain exactly the difference between titles & agreements a foreigner can enter into
Look into what title is currently in place on the property you wish to 'buy'
What title if any are you being offered & who is the agreement with
Who is the current owner & is the property free from problems such as family land disputes/ownership etc
Have a look into Hak Pakai & Hak Sewa
Hak Pakai- right to use land for a specified purpose
Registered in land office
Specified period of the lease - 25 yrs and then can be renewed (not extended)
Must be domiciled in Indonesia - at least part of the time
Only allowed 1 property
Hak Sewa- right to lease/rent
Agreement between owner & foreigner - not registered in the land office - usually through a Notaris
Period of lease defined between the 2 parties
Extension of the lease possible, usually agreed to at signing & implemented before end of lease
Remaining period of lease can be 'sold' to another with the land owners agreement
http://www.baliproperties.com/foreign.html
http://www.jimbaranproperty.com/faq-property.html