User Tag List

Page 2 of 2 FirstFirst 12
Results 11 to 16 of 16

Thread: Bali Legal Expert Warns that Foreign Villa Owners in Bali Face a Rough Road Ahead

  1. #11
    Fanatic Fred2's Avatar
    Join Date
    Oct 2010
    Location
    Surabaya/Australia
    Posts
    711
    Thanks (Received)
    1
    Likes (Received)
    1
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    I think the biggest problem is that a nominee type of land sale will never get to court. You can try & come to some agreement with your nominee or just walk away.
    I was told by a good notaries that the lease part is all you have. I think he said something like only a bank can loan money. Also your nominee's will should have you or your wife to inherit the land which gives you time to draw up a new agreement with your new nominee.

  2. #12
    Member
    Join Date
    Jan 2012
    Location
    Denpasar
    Posts
    94
    Thanks (Received)
    0
    Likes (Received)
    0
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Following this thread I got worried. In my Nominee agreement there appears to be a clause which says that if the law 'changes' then the Agreement becomes a 100 year lease. Is that a common clause in such Agreements? Anyone know?
    Barekarma

  3. #13
    Insane Poster gilbert de jong's Avatar
    Join Date
    Jan 2009
    Location
    Panji, Singaraja.
    Posts
    3,198
    Thanks (Received)
    15
    Likes (Received)
    29
    Mentioned
    2 Post(s)
    Tagged
    0 Thread(s)

    Default

    @barekarma...clauses can differ very much from person to person and/or from notary to notary.
    if I remember right, I have some clause/paragraph that says something like ; if the law changes and foreigners are allowed to own land in their own name, then the name on the certificate will be changed into my name.
    Words like luck, chance and coincidence were invented to express the known effects of the unknown causes. (Voltaire)

  4. #14
    Addicted davita's Avatar
    Join Date
    Mar 2012
    Posts
    1,528
    Thanks (Received)
    4
    Likes (Received)
    27
    Blog Entries
    5
    Mentioned
    7 Post(s)
    Tagged
    0 Thread(s)

    Default

    As gilbert alludes.....any agreement between two parties should not be cause for worry unless it is clearly designed to circumvent the law where foreigners are not permitted to own/control Hak Milik property.

    The OP's link concerned a case where some foreigners used the nominee method to control a resort of villas. This was not run as a proper business, did not submit taxes, and this opened a can of worms.

    Many other absent foreign villa owners are doing something similar and no doubt will be entertained as suggested by the OP's link.

    My worry is that foreigners who genuinely use a nominee to enable them to enjoy living in Bali, might be seen as unlawful. I hope this will not be the case and that any contract or agreement which does not attempt to circumvent law, or be an illegal agreement, will not be heard.

  5. #15
    Addicted davita's Avatar
    Join Date
    Mar 2012
    Posts
    1,528
    Thanks (Received)
    4
    Likes (Received)
    27
    Blog Entries
    5
    Mentioned
    7 Post(s)
    Tagged
    0 Thread(s)

    Default

    Quote Originally Posted by borborigmus View Post
    One legal way out of this impasse is to lease. Both parties to a long-term lease (unlike a foreigner "purchase" agreement) are fully legally protected. Typically a lease would run for 20-25 years, after which it can be renewed. In some ways it is similar to the ACT in Australia, where no-one can actually buy property - they lease it from the government.

    Maybe it would be possible for you to execute a long-term lease with your nephew (since he is the legal owner of the property) which would give you both security of tenure and a great deal of flexibility in terms of renovations etc. Since you have already paid for the property, it makes sense that any payment for a lease term be purely nominal - a 'peppercorn' rental, so to speak.
    Thanks for the above quote borborigmus...which I hope you don't mind my edit just to keep it concise to the point.

    Your advice has merit...The owner (my nephew) could easily sign a lease for a fixed sum with us for a certain amount of years. That would not constitute circumventing law and is an agreement between two willing parties that is not illegal. It would matter not if it was between two Balinese or two Javanese or one Ambonese and a couple of foreigners. He could also write into the contract that we could renovate or sublet....so long as the title to the property remained in his ownership, and he remained a WNI, we are not attempting to transfer title or control of the land.

    I've read that some say this would need to be re-registered as Hak Pakai but I don't see why....it is a simple long term landlord/tenant agreement and not a change of property title.

    Does anyone see any flaw in this approach?

  6. #16
    Regular hermit's Avatar
    Join Date
    Aug 2010
    Location
    Bona gianyar
    Posts
    387
    Thanks (Received)
    0
    Likes (Received)
    0
    Mentioned
    0 Post(s)
    Tagged
    0 Thread(s)

    Default

    Read the interviews with Rainy Hendriani at the bottom of the article that started this thread .She clearly outlines the difference between a Lease and Hak Pakai on Hak milik.

Similar Threads

  1. Australian government warns of terrorism threat to Bali
    By balinews in forum Bali News - Indonesia News
    Replies: 0
    Last Post: 17-09-2010, 12:13 PM
  2. Chinese tourists changing the face of tourism in Bali
    By balinews in forum Bali News - Indonesia News
    Replies: 3
    Last Post: 29-06-2010, 11:53 AM
  3. Future and past Bali Property Owners - Things Change!
    By Markit in forum Owning Property in Bali
    Replies: 11
    Last Post: 07-07-2008, 04:43 PM
  4. Villa Owners Who Rent or Lease Must Register
    By in forum Bali Travel Forum
    Replies: 2
    Last Post: 19-07-2007, 08:16 AM
  5. BEST MARTINIS ON BALI...FROM AN EXPERTíS VIEW
    By Roy in forum Bali Expat Forum
    Replies: 45
    Last Post: 27-04-2006, 06:55 AM

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •