NEW LEGAL CONSTRUCTION

[rien.gluvers]

Found this on the internet. Does anyone of you know about this and is it really better than the methodes used till now?

NEW LEGAL CONSTRUCTION

We offer you a new legal construction for buying property in Indonesia, made in April 2004 by an international top lawyer with a thorough knowledge of the Indonesian Property Laws. This new construction makes you totally independent of the Indonesian nominee.

Our contract basically consists of a loan agreement with 27 clauses, in which amongst others is stated that you (the Lender) has borrowed money to the Indonesian nominee (the Buyer) with the sole purpose of purchasing the desired object of land. Also it is stated that the money borrowed by the Lender has been used by the Buyer for this purpose. Furthermore it is defined that the loan cannot be repaid with money, but can only be repaid in full but with the land, at any time desired by the Lender.

The contract provides in the guarantee that all necessary future desired agreements shall be made, such as a lease agreement and an agreement to devide the ownership certificate into any desired number of smaller title holder certificates (which makes it possible to develop projects on the land and sell or lease pieces of it)

The contract also contains a clause in which is stated that as soon as the Indonesian laws regarding the ownership of property change in favor of the foreigner, the titel of the ownership documents will be transferred to your own name if desired.

Another strong part of the contract gives the Lender Full Power of Attorney to build on, make improvements, use and sell the land, including all improvements made by the Lender, at any time desired by the Lender. Because of this Full Power of Attorney the Indonesian nominee need not to be present when the title of the ownership documents is transferred at the notaris office, nor at any time is the approvement or signature of the Indonesian nominee needed. All profits resulting from the selling will be paid directly to the Lender, without the reduction of any costs having to be paid to the Indonesian nominee.

We will be happy to discuss this contract in more detail with you at location in Bali if you are interested to buy one of the objects advertised by us.

 

[Bert Vierstra]

Nothing new.

 

[Petenjo]

Rien,

Which agent was this through pls?

Cheers

 

[rien.gluvers]

Found it on wwwDOTbaligardenvillasDOTcom.

<admin edit>
No you did not. Link removed. I don't like linking to this site. After weeks of begging he removed the text copied from my website, Well removed, changed a few words. (I made this site, not the content, but the content management system)

I know where you found it, though.

You found it on wwwDOTbalikarmaDOTcom, a site wich is not active at the moment, but will be soon again I guess. It's my belief that it is owned by Ringo, a member of this forum.

<admin edit>

 

[Bert Vierstra]

Again, nothing new.

The Loan construction is quite common, as well as the Power of Attorney thing.

What is not mentioned here is the "reward" for the nameholder, wich seems not present.

Would Balinese do it for free you think?

What IS new (since a few months), however, that there is legislation to drop Hak Milik in favour of Hak Pakai for Individual Owners, the same construction as the PMA.

But I am still trying to find out the pro's and con's of this...

 

[rien.gluvers]

Sorry Bert,

Didn't see the harm in posting the url. Next time I find something like this I will mail you first . OK?
When you've found out more about the (im)possibilities and would very much like to know. Al the different story’s about ownership are making me very nervous of bying anythingon Bali. Everytime I think I have found the info how to do it, an other website points out why it isn’t the right way.

 

[Bert Vierstra]

I think the way people think about "land ownership" depends on the experience they have and the stories they hear.

One remembers the bad stories, but usually forgets that there are many many foreigeners who "own" something in Bali.

In the the "latitudes magazine" of october there is a more or less negative article about owning property in Indonesia, forgetting again how many foreigners happily "own" property in Bali. (See the add on page 2, the blue one, doesn't it look nice? )

It comes down to doing your business with the right lawyers and notaries. People that have experience with the material. There are foreign lawyers working in Bali, and there are Indonesian lawyers / notaries married to a foreigner. These are your best picks, is my guess, but as always, ask references, and find your own references.

 

[Petenjo]

Just returned from a hectic week in Bali looking at property. The original plan was to acquire some land and build a villa to suit my requirements - which were to spend 2-3 months a year in Bali with the remainder of the year spent in whichever country I am working or my house in Perth, possibly renting out the villa.

The trouble is, my family now want to live in Bali full time which changes dramatically the type of property we desire - so another trip to Bali in the very near future is required - bummer!! (not)

Anyway, back to my question - Bert, you mention 'reward' for the nameholder on the land title. I have heard of from 1% of original purchase price to 5% of sale price (pretty steep by my reckoning) - what do others believe is a fair price and when is it due?

I would prefer to pay a fee up front, 1% is fine, and be done with it......of course this will be in the Power of Attorney and lawyered to the hilt.

 

[Bert Vierstra]

Fair is what is usually is done.

Usually a fee is paid monthly to the nameholder, around 100.000 rupiah.

And I quote from my own site:

Contract Part 4 - This part describes that, when it is possible for the foreign citizen to become owner of a property when the Indonesian law changes, the Indonesian counterpart will have to abide by his duty to help / cooperate in changing the contracts so you will be owner of the property, and in case there is a change in the law that would negatively effect you, that the contract of agreements with your Indonesian counterpart will be changed into a lease contract for a long time period of 50 years with the right and option for extending it. If you at any time decide to stop your contract with our contact, and cooperate with another Indonesian counterpart, the Indonesian has to cooperate. In this circumstance it is your duty to pay him his losses, namely his monthly payments for the period of 25 years at once that in 25 x 12,50 x 12 = 3.750,- Euro/Dollar on a rate of 8.000. You also will protect yourself in this way from the chance of a higher cost relating to the percentage of extra profit made by selling the property as this can not be higher than the price you pay when stopping the contract!

http://www.bali-information.com/bali-villa-legal.php

(Still have to something about the exchange rates)

The higher cost referred to in this contract, is the usual 5% of the profit that the nameholder is entitled to when you sell.....