land lease agreement, what not to forget??

O

Hi everyone, I was wondering if anyone is willing to share his lease agreement or at least recommend a few important terms/points not to forget to include. I imagine the notary will have his cut and paste model but I also know it will vary greatly depending on which notary one uses. Also if someone can recommend a trustable notary in Gianyar, it would be very much appreciated. Kasih!!

Markit

Firstly: how long have you been here? then: if you don't know what should go into a lease agreement why are you signing one? also: lease content- everything you think is important, and then some - access, repairs, upkeep, trash, taxes, etc. etc.

Mark

O wrote Hi everyone, I was wondering if anyone is willing to share his lease agreement or at least recommend a few important terms/points not to forget to include. I imagine the notary will have his cut and paste model but I also know it will vary greatly depending on which notary one uses. Also if someone can recommend a trustable notary in Gianyar, it would be very much appreciated. Kasih!!

It would be helpful to know what kind of lease are you contemplating. A short term accomodation (one or two year) lease for a villa, or a long term (twenty years plus) lease on land or land/villa?

O

Thanks for some initial feedback. Been in Bali over 10 years and have property with freehold and classic nominee structure but this is for a pondok wisata to build 5 small bungalows, larger land, 20 are so it would be a big price tag to do another freehold hence a 20 year lease instead. I am aware of the basic terms that need to be included but I also know that there are pitfalls that I probably haven't contemplated and that's why I'd appreciate some expert opinion on that. Tks!

spicyayam

You are probably aware the PW licence can only be in a locals name. Also I believe it needs to be in the land owners name, rather than the leasee. The owner will also be liable for the taxes. So my advice is to make sure the land owner is on board with your plans. Getting someone to do due diligence on the land is a good idea also. So many scams going around, even people trying to lease property they don't even own. Fake certificates, people with mortgages on their property trying to lease it and on and on.

O

thanks spicyayam for these pointers. I do still need to check whether the PW can be on someone else's name than the landowner -assuming that person is Indonesian of course- but I do believe it can be done as long as the owner sign off on it but does not become the actual PW owner.

spicyayam

O wroteI do believe it can be done as long as the owner sign off on it but does not become the actual PW owner.

I didn't think it was possible. Keep us updated how it goes.

sakumabali

It's true there are many scams but to be safe is not rocket science; meet at the notary with the owner and his KTP & certificate (if there's a mortgage it's written in there), make sure the deal is at least 20-25 years. An further extension "for market price" means nothing! You're a genius if you negotiates an extension for a fixed price written down & signed!