Buying property in Bali -2

Under Indonesian law foreigners are not permitted to have property title in Indonesia. There are 3 alternatives for foreign to buy property in Bali  here are the summary :

1. Enter into a legal arrangement with an Indonesian nominee, either an individual or PT company, whereby he/she/corporation holds title to the property. Simultaneously, complete a power of attorney, handing over full rights from the Indonesian entity to the foreign investor.
2. Make a leasehold investment in the property, up to 25 years. Partnerships with Indonesian citizens are not required in leasehold transactions. This method does offer complete protection to the foreigner during the term of the lease, however, once the lease term has expired the agreement can be extended or the property reverts to the Owner.
3. Form a foreign investment company (PMA). Here the foreigner can own the company 100% and the title of the property will be in the company name. However, title in this case could only last for 20 or 30 years as PMA companies have to re-apply to the Indonesian Government to extend their license.

BUYING THE PROPERTY
Simplified, buying land in Bali can be illustrated with the following steps:

1. Appoint your Real Estate Agent
2. Negotiate price on your chosen property
3. Make a deposit (usually 10 - 30% of total price)
4. Sign a letter of intent with the seller agreeing to price, final completion date and payment schedule.
5. Completion and final payment at the Notary
6. If using a Nominee, simultaneously sign the 'power of attorney' at the Notary
7. Collect the revised certificate