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how to check land for building permission before renting it

Discussion in 'Bali Expat Forum' started by john82, Aug 10, 2017 at 11:11 AM.

  1. john82

    john82 New Member

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    hello guys,

    i´m new in this forum and had already a lot of insight and good tips from all of you while doing some research about a business opportunity in bali. so thanx for that!

    now i have a specific question + i just would like to hear some ideas and opinions, to be honest.

    my friends and future business partner and i are planing to open a dive shop/bar/restaurant/homestay.
    we have already find a nice plot of land we wanted to rent for 20years, but its banjar land. i just wonder how good or bad is it to be so close to the village power by renting their land, as there are so many shocking post here.

    of course it depends on how you deal with people and how these people role. do they just want to milk you or are interested in cooperation, etc, etc…


    also:
    the land is on the beach but only goes around 70m from the shore instead of 100m.
    You can build shaks, pool and maybe even a restaurant before the 100m, but definitely no bungalow.

    but as always they are ways around and a local friend told us, the the regulation might differ cause the land lies straight next to the main road – but the road is only „next to it“ and „not crossing the land in the front bit, otherwise it wouldn’t be a problem to built bungalows before the 100m.
    so we would like to know at first, if its actually possible to build on the land like we intend to, otherwise renting it doesn’t make any sense.

    so how do we find out? by application for an IMB for a land we don’t rent yet + without any contractor? or through an application for an IP?

    thanx a lot
     
  2. spicyayam

    spicyayam Well-Known Member

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    I live near some beach land that was built on recently that is owned by the village. There was a small homestay on it, which was pulled down completely and a new villa built on it, with plans to build several more. The villa is only a few meters from the high tide water line.

    You can't see any IMB plate on the building. I have no idea if they have one.

    Of course it depends totally on the banjar, the people you will be working with etc, etc. I am sure they will want you to employ only people from the banjar etc.

    I would look into temporary type structures that you can easily move later if so desired. Just make sure that you include this in the agreement. Make sure the agreement is watertight, made with a notary and possibly checked over by a lawyer.
     
  3. john82

    john82 New Member

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    thanx for your feedback spicyayam.
    i believe the villa you are talking about might be owned by a local with good contacts to the government or a foreigner with a local nominee. as always the rules for bulehs and locals differ...

    of course we will have a lawyer and a notarist once we want to rent the land but at this stage it seems not really necessary as we won't do it if we can't get an IMB for it.
     
  4. spicyayam

    spicyayam Well-Known Member

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    Its a foreign owned company that leased the land and built the villa. An old neighbor works for the company. But they have been here a long time and I would imagine have good contacts.

    If you build only temporary structures then you don't need an IMB.
     
  5. Mark

    Mark Active Member

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    There are many dodgy real estate arrangements in Bali. However, just be aware that once you cross the line and do that which is legally not allowed you become vulnerable, and in case of any future dispute, however petty, with the banjar or the government, the legal system cannot help you and you will be screwed and lose everything. My advice would be to only invest money that you can afford to lose if things go wrong, which hopefully they won't.
     
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