Thread: That all important Nominee Agreement

To all those prospective buyers of land here in Bali I would just like to share some of my experiences with the purchase of some land that I am attempting in Karangasem.

One of the most important things that you will do is to have your Notary or Lawyer draw up a Nominee agreement between you and your Balinese "friend" to cover your purchase of land in Bali which you are legally not allowed to own - lets make no bones about it, that is the law and there is really no getting around it.

I would firstly recommend that you find a Notary that can explain things to you in English. I followed Bert's advice and contacted Farida Andriani a Notary in Singaraja who not only spoke excellent English but has been married to a Dutchman and probably speaks that too.

Her contact details: Jl. Dewi Sartika 12B, Singaraja - it's just opposite the University in the middle of town.

She was excellent in explaining all my stupid misconceptions and plain dumb ideas along with supplying me with written examples of the 4 types of contract you and your Notary will need in both English and Indonesian. Unfortunately I couldn't have her represent me because she is only valid to work in the North of Bali and I'm buying in the East.But the most annoying thing, the real pisser, that I keep running into again and again and again that just drives me apeshit is - she wouldn't take any money for all this. Yep doesn't it just drive you nuts? These crafty Asians are always trying to get there nasty little hands on our hard earned money, except they aren't. What a letdown :twisted: 2 hours of intense consultancy and not a dime would she take.

The other most important thing I took away from the meeting that I hadn't known before, and this after searching high and low for nigh on a year was this:

When you draw up the loan agreement between you and your Nominee to cover your loan to him for the value of the property i.e for those newbies - you are loaning your nominee the money to buy the land that is in his name but you have the use of it in perpetuity (hopefully). Remember to include the value of the house that has yet to be built on it. Lets say for the purpose of argument that your land will cost 100,000,000 Rupiahs and you intend to put a house of similar price on the land. Then make out the loan agreement for 2 billion, even if the house hasn't been built yet, when it is you want that value reflected in your loan to your "friend".

Otherwise your 'friend" might borrow the money to pay of his loan and take custody of the land and get the house for nothing - good business if you can get it. And there's no court in the land that would dispute his ownership since it's there in black and white on your loan agreement. :lol:

One more thing for now but in your choice of "friend" I would highly recommend you don't find a real friend but cultivate someone of reasonable standing in the community. Possibly someone in a managerial situation with a large family and possible higher up in the community level. I have heard some hair-raising stories about "friends" and acquaintances of many years standing, turning into monsters overnight - rich monsters, with your money.

It seems to me that someone who is going into the entire relationship on a professional basis is a much better bet than someone with an emotional connection, but maybe that's just me :roll:

The Best Wife in the World (BWTW) sends her regards and is landing tomorrow after spending reams of money in Singapore. I figure if we could get a direct flight from London to Bali for double the price it would still work out cheaper in the long run 8)

Don't sweat the bullshite. Those that are interested will understand and those that aren't will not be coming here anyway. Can't see the vid anyway as in Bali the bandwidth is pretty miserable.

No worried I am not so easily offended as some seem to be (as I said here in Bali I couldnlt download or watch the "offending" video so no damage done or had. :?

Your general warning is, I'm sure, true InAdelaide but if you could perhaps be a bit more specific about the examples you mention then we could all learn something from it - general paranoia is enough going around.