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Thread: Re-Zoning of land use

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    Default Re-Zoning of land use

    Hi everyone,

    I have recently leased a piece of land for 25 yrs. We got a lawyer to check through our lease contract and he pointed out that the land title deed states that the land is zoned as farming land (Keadaan Tanah: Telagan). This has to be re-zoned to residential use or tourist accommodation use (if we want to build houses for daily rental).

    However, our landowner claims that every owner in our area build villas (with approved IMB) on these 'telagan' land. In fact, on the same land that we leased, there is already a villa estate (for tourists use) that is built 10 yrs ago. So the land owner feels that there is no problem and no need to apply for re-zoning.

    Does anyone here knows about re-zoning laws or regulations in Bali? The re-zoning and IMB are from the same govt dept. Does it mean that even if the land is on 'telagan', it's ok as long as we get an IMB ultimately?

    Any advice or info will be greatly appreciated.

    Cheers

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    A good notaries would have made sure that the owner has the land rezoned & IMB approved before you would pay anything.
    If the land can be rezoned, the easiest way is have the owner do it, The same with a IMB the owner would apply for it then you adjust it after it has been approved. If I were you I would not do anything until everything has been approved, your dream may cost you a lot more then you think.

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    Unless the land is in a protected 'green belt', or very close to a temple, changing the land use from agricultural to residential is typically not a big deal. I do agree with Fred that it would be easier for the owner to do this. We had land use changed by the seller on two parcels we purchased (abt 50 are total) and the process took about one month and cost Jt 35 in notaris fees (the cost is likely why your owner does not want to do it himself). I would personally not rely on an IMB which was issued for land that is still zoned agricultural. Get yourself a good notaris, ideally you should have had one from the start.
    Last edited by Mark; 24-02-2013 at 12:54 PM.

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    Quote Originally Posted by Mark View Post
    Unless the land is in a protected 'green belt', or very close to a temple, changing the land use from agricultural to residential is typically not a big deal. I do agree with Fred that it would be easier for the owner to do this. We had land use changed by the seller on two parcels we purchased (abt 50 are total) and the process took about one month and cost Jt 35 in notaris fees (the cost is likely why your owner does not want to do it himself). I would personally not rely on an IMB which was issued for land that is still zoned agricultural. Get yourself a good notaris, ideally you should have had one from the start.
    Much like above, only I got 15 are rezoned during the purchacing process, cost 1.5 juta.

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    I have to add I also got an IMB for a dwelling on 49 are of farmland. I was surprised because I had been previously told it was very unlikely to get IMB for areas over 20 are, or for farmland. I simply said it was for a farmer/security. The village chief had told me not to bother with an IMB as no one else had one and he wouldn't complain. But I wanted one in case I sold the property [makes it easier]. I found getting the IMB a simple and quick process [2 weeks and I even drew the drawings for the house myself with a biro.]

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    Quote Originally Posted by Mark View Post
    Unless the land is in a protected 'green belt', or very close to a temple, changing the land use from agricultural to residential is typically not a big deal. I do agree with Fred that it would be easier for the owner to do this. We had land use changed by the seller on two parcels we purchased (abt 50 are total) and the process took about one month and cost Jt 35 in notaris fees (the cost is likely why your owner does not want to do it himself). I would personally not rely on an IMB which was issued for land that is still zoned agricultural. Get yourself a good notaris, ideally you should have had one from the start.

    I paid last year 140jt in Pererenan for 22are...I think I've been fooled!!

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    Thanks guys, for sharing your experiences.

    Yes my notary should have checked and informed me. But at least i know that it could be rezoned easily.
    My land owner has already started the IMB process.
    As i am leasing a portion of his land, he is unwilling to re-zone his whole 'farming' land unless i pay for the whole fees.

    So do you guys think it's ok to have the IMB approved and yet land is still zoned as farming land?

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    Quote Originally Posted by Philip108 View Post
    Thanks guys, for sharing your experiences.

    Yes my notary should have checked and informed me. But at least i know that it could be rezoned easily.
    My land owner has already started the IMB process.
    As i am leasing a portion of his land, he is unwilling to re-zone his whole 'farming' land unless i pay for the whole fees.

    So do you guys think it's ok to have the IMB approved and yet land is still zoned as farming land?
    Personally I would not. I think you probably got the land for a very cheap rental and hoping that someone on this forum will tell you it's all good and go for it. If it was that easy , someone esle before you would have done it. We also bought farm land in Bukit but the owner of the property got it rezoned and subdivided prior to us handing over the money.

    As various members have pointed out, get it rezoned or run the risk of someone knocking on your door in the future and telling you to get your belongings out before they demolish the house.

    Remember that the rules for the locals and what they can get away with does NOT apply to any bule.....

    Be warned.

    Cheers
    Ken

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    Thanks Ken for the advice.

    Do you know the process of re-zoning the land.
    I would like to understand a littl emore about the process, costs, which govt dept, so that i can convince the land owner to see thru the whole process.

    Thanks

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    Quote Originally Posted by Philip108 View Post
    Thanks Ken for the advice.

    Do you know the process of re-zoning the land.
    I would like to understand a littl emore about the process, costs, which govt dept, so that i can convince the land owner to see thru the whole process.

    Thanks
    A notaris can lay all of this out for you in an initial meeting at no cost. While we are mostly all well meaning people here on the board, I'd suggest you not rely on our advice and experience on which to make important and expensive decisions.

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