How to protect my money

[k1ngsize]

Hi,

I just came to Bali a few days ago, I'm staying in a nice villa in Canggu, but I've been looking for something else and I think I found it. A really astonishing villa in the heart of Seminyak and the price is really attractive for that kind of property. Only 7k euro/6 months. But. The owner is telling me that on the papers he's not the real owner, but a balinese person is, so I'll be making a contract with that person. Although I've never seen him and will not meet him, because he's a formal owner of the land and the villa. The guy (real owner) tells me that we'll avoid lawyers and make a contract between ourselves. My question is: is that a common practice on Bali? 7k euros is a reasonable price for that kind of villa but it's still a lot of money and I basically know nothing about this guy, he might be renting it himself for two weeks and after he gets my payment upfront, I'll never see him again. I'm not saying he's a scam, I'm just imagining the worst case scenarios. So how do I protect myself and my money and make sure that the guy's legit and that noone will kick me out of the villa after a week of staying in it? Should I tell him that we must make the deal through the lawyers? To what lawyers should we go? How much that kind of a transaction service could cost?

I'd really be grateful for any kind of information. Thanks.

 

[gilbert de jong]

Hi K1ingsize,

There should be a contract between the owner(balinese) and the guy who wants to rent it out to you...In that contract it should say that the foreigner has all rights to the land and property on it, in other words he has the right to live there, to sell the place and or rent it out. That contract should have been notarized (made by a notary, stamped and signed in front of witnesses). And for sure he (the foreigner) would have the landcertificate in his possesion. If he cant show them to you, don't do it...at least I wouldn't!

The contract that the guy wants to make between you two, also has to be notarized. Like you already said, it a reasonable amount of money to be throwing away. So the 500.000 rupiah for a Notary to make a contract between you guys is in my opinion the smartest thing to do. He has to bring the landcertificate and the contract between him and the Balinese guy.
Hope everything works out....oh yeah, FYI..there are holidays coming up, so banks will be closed...don't fall for the excuse--- "I cant get the contract and landcertificate from the safety-depositbox at the bank, because of Galungan". Just wait till the banks open again, so he can get them...if he has them. Know what I'm saying....
friendly greetings....Gilbert.

 

[calitobali]

Have you suggested the idea of a lawyer to him, or did he just say there was no need on his own? I would suggest it and say that you are much more comfortable using one, and if he refuses there may be something fishy going on. If you pay for the lawyer's services, and he isn't trying to do anything dishonest, he shouldn't have a problem allowing you to protect your assets.

To be honest though, a lawyer really isn't essential, for a 6 month contract, I think a notaris (or notary in English) should do the trick, but I'm no expert, or really even partially knowledgeable in transactions like this, I just know from life experience that if a person is unwilling to let someone like a lawyer assist, it should raise at least a yellow flag, if not a red one.

Good luck to you.

 

[k1ngsize]

Yeah, it were his words, when we were discussing our deal that got my attention afterwards, when I was thinking about it on my own: "Let's make a contract between you and me, we don't need the lawyers". A notary option is very good, thanks, tomorrow I'll ask my balinese friend where we can find one and suggest it to him. Thanks guys, I'll keep you informed if something interesting happens

 

[k1ngsize]

Hi K1ingsize,

There should be a contract between the owner(balinese) and the guy who wants to rent it out to you...In that contract it should say that the foreigner has all rights to the land and property on it, in other words he has the right to live there, to sell the place and or rent it out. That contract should have been notarized (made by a notary, stamped and signed in front of witnesses). And for sure he (the foreigner) would have the landcertificate in his possesion. If he cant show them to you, don't do it...at least I wouldn't!

The contract that the guy wants to make between you two, also has to be notarized. Like you already said, it a reasonable amount of money to be throwing away. So the 500.000 rupiah for a Notary to make a contract between you guys is in my opinion the smartest thing to do. He has to bring the landcertificate and the contract between him and the Balinese guy.
Hope everything works out....oh yeah, FYI..there are holidays coming up, so banks will be closed...don't fall for the excuse--- "I cant get the contract and landcertificate from the safety-depositbox at the bank, because of Galungan". Just wait till the banks open again, so he can get them...if he has them. Know what I'm saying....
friendly greetings....Gilbert.

Hi Gilbert!

I contacted Balimod today inquiring about notary services. They told me that the price is 10% from the real price of the contract. Maybe you can advise me a reliable notary that can do it for 500 000 like you said?

Thanks.

 

[calitobali]

BaliMode as in the one on Jalan Sri Wijaya?

They do many things including property consultation for foreigners, so it wouldn't surprise me if their prices are a bit inflated. Gilbert would know much better than me on how much it would cost, I've never tried using a notaris, but they are all over the place. It would probably be wise to bring a Balinese friend anyways, just to bridge any language barriers, and he should know of a notaris, or at least drive around with you until you find one, not too hard to find, I see signs for Notaris all over the place.

 

[k1ngsize]

thanks a lot

 

[gilbert de jong]

Holy crap... 10% for a standard contract which should only be printed out after the clerk fills in the names of the parties??
I mean they don't have to make a tailor fit contract, just a simple 6 month lease contract (probably saved in documents, hahaha), 'check' if the number of the landcertificate is the same as the number mentioned in the contract between the foreigner and the Balinese, another clerk signs as a witness, and stamp it to make it a notarized paper/contract.

Like calitobali says, there are alot of notaries, usually a name-sign with PPAT on it , just shop around, cause from the sound of it there is alot of difference in pricing.
The notary I use (his services that is, hahaha) is a bit far away for you...up north in Singaraja...Just go to a few in your neighboorhood, and if it doesn't work out, let me know and I will send you a pm with the adress details etcetc of 'my' notary.
But I am sure you will find one with normal prices in the south too.
Take care...Gilbert.

 

[Markit]

Hey guys the notary costs are stipulated by law here - for transfer of property it's 1.5% of the value of the property but, and it's a big one, anything you ask for that' "extra" will be charged as extra, surprise surprise. If you can see the notary's price list then stick to it and any extras you may want, ANYTHING, ask him or her how much that will be...

For writing a simple contact it may well be 10% of the contract value, ask to see his price list and get him to explain his charges if you can understand him (take an Indo friend).

 

[Jimbo]

No way is it 10%. Something wrong there with perhaps a shift in the decimal point

 

[lumumba]

Hi,
Jimbo is rigth.

My Notary to write a will (5 pages and quite complicated with many clauses) charged me 700.000rp and reduced to 550.000rp at the end. This was in BANDUNG 6 months ago.

L.

 

[Markit]

That's right, with the notary charges like everything else you can barter - the price list they show you in the office is a maximum they can charge - no minimum listed so go for it.