Thread: Land Certification - agricultural to residential use

Can anybody help clarify something for me.

We are in the process of buying land. The land was PIPIL but has now been certified.

The certificate however has been issued stating it is zoned for agricultural use. We need to have it rezoned as residential use to allow us to build on it in the future.

My question is, would it be normal practice to have the certificate issued first as agricultural land,pay the current owner for the land, and then the new owner subsequently apply for rezoning? Or shoudl the rezoning be done by the current owner so that when the final payment changes hands the land is already zoned as residential?

My concern is that we pay the full amount forthe land, only to find that the rezoning is turned down.

What is the normal procedure? Would a buyer be expected to purchase land that is zoned as agricultural and dothe rezoming themselves or would the norm be to have the rezoming done before final payment? Just trying to get a gauge on "standard practice".

Thanks!

Most definitely I would have the current owner apply for the “re-zoning” of the land before paying anything beyond a small, but “good faith” deposit with the stipulation that said deposit is returnable if the new application is turned down. However, you should offer to pay for this new application, which as I understand it is not that expensive.

Each of the regencies in Bali have a specific office where this type of application is made. My brother in law heads up this office in Gianyar and I know that his office really can’t turn down such an application for the current Balinese owner of land currently in agricultural use. Good luck with your project.

Hey Tony, Have you started building your home in Bali??
Doug in L.A.

Originally Posted by niksing

What is the normal procedure? Would a buyer be expected to purchase land that is zoned as agricultural and dothe rezoming themselves or would the norm be to have the rezoming done before final payment?

What I have been told is that in order to apply for rezoning you need compleet designs for the home that will be build. This makes it unpossibble for the seller to do so.

"What I have been told is that in order to apply for rezoning you need compleet designs for the home that will be build. This makes it unpossibble for the seller to do so."

Rien, I believe what you are referring to is the builiding license....not the zoning of the land. For the building license, you are correct in that blueprints of the proposed structure need to be submitted with the application and fee.

In the Gianyar Regency, these are two separate departments. In other regencies, these departments may be combined, I don’t know.

The point, or what is at the crux of the issue, is to never pay for land currently zoned for agricultural use that one plans to build on until after the zoning has been changed.

Thanks for the update Tony,hope to talk to you soon.
People building homes would be WISE to aquire a building certificate(IMB) before building as well as approval from the head of the Banjar(Kliang Banjar).These are recommended formalities.