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If you’ve researched the topic before opening this article, you’ve most likely learned that Bali isn’t only the perfect holiday destination for this summer. Instead, you’ve probably discovered that it’s becoming increasingly popular with people, more specifically, foreigners, looking to invest in buying homes.
You may be thinking about doing the same thing, and if so, you must know that the process of acquiring estates in Bali as a foreigner is different from the procedure in your home country. To help you understand the entire buying process in Bali, here are the top 7 things you must know and do:
1. Search For And Find a Suitable Option
Before we take a look at what you’ll need to do to acquire a house or apartment in Bali as an outsider, the first thing you must know and do is search for and discover a suitable property for yourself. For starters, you need to know that you cannot buy land in this particular nation, meaning that you might want to obtain a condominium. Why? Well, it’s easier to purchase an apartment than it is to buy a large house or land that you could build on.
Another thing that’s crucial is that you’ll want to check the state of the condo or estate before placing an offer. Now, to do this, you should contact a real estate agency, mostly because they’ll know how to arrange a professional inspection, and more importantly, they’ll know which issues they should look out for. Once you determine that a specific parcel is suitable for you, you should move on to the step.
2. Compose And Sign an Offer
If you’re absolutely certain that you want to buy the estate you found, the next step is for you to write and sign an “Offer to Buy” document, one that you’ll mail to the seller or the estate agency that you’re working with. As you may have guessed, the paper will highlight that you’re interested in obtaining the estate, and when writing it, you must insist that you desire to obtain the estate, mostly because this will let the seller know that you’re serious about making an investment.
3. You’ll Have to Hire a Notary Agent
Another task that you’ll need to be aware of and complete is that you’ll need to hire a notary agent. Remember, you must be the one who chooses the agency you’ll work with, and be aware, that the charges will go from 1% to 2.5% of the purchasing cost. The notary agent will write a legally binding contract in Indonesian, however, it’s recommended that you also ask for a translated version. You should know, that the translated contract isn’t legally binding, thus, ensure that you keep the Indonesian version safe.
If you, for instance, opted for buying a house or apartment in Nusa Penida through penidaland, you must know that the selling agent – in this situation, the third party in the process – will prepare a purchase and sales agreement that you and the person selling need to agree to on. From there, they’ll mail it to the notary who will then draw up a sales contract. Either way is appropriate and the method you opt for will entirely rely on your preferences.
After you and the seller have arranged all the terms in the agreement, you’ll, of course, have to sign it. You should be aware, that during this particular stage, it may be best if you talk to your legal representative, mostly because they’ll be capable of telling you whether or not the terms and requirements are properly drawn up. Once you and the other party sign the document, you’ll most likely have to sell a deposit, which leads us to our next point…
4. Send The Deposit After Signing
The document you signed will most likely highlight the deposit you agreed on – which usually goes from 10 to 25% of the total estate value. The money you deposit will be kept by the notary agency you opted for. If there is one thing that you must take away from this article, it’s the fact that you must never, under any conditions send the deposit straight to the seller. Hence, once you send it to the agency, the seller will then have to remove their parcel from the listing.
5. Review And Sign The Deed Document
When the other party removes the parcel from the listing, you’ll need to formally finish the acquisition process as dictated by the agreement you’ve made with them. You’ll either need to sign the Sale and Buying Deed or a Leasehold Deed. Until you pay the full price of the estate or until you meet any other term stated in the document you’ve made. The notary agency will hold all the deeds and certificates until the transaction is complete.
6. The Estate Will Finally Become Your Own
If you’ve settled the entire price of the house or apartment to the other party and once you pay all the taxes required, the title of the parcel you purchased should be assigned to you. Besides this, you must receive several copies of the credentials and deeds. When you complete all the aforementioned steps and tasks, the parcel will finally become your own, and you’ll be capable of moving into the estate as soon as you receive all the needed papers and documents.
7. Know Your Budget
Before we conclude this article, you must know that the budget you determine will most likely be exceeded, especially after all the taxes and payments you make. This means that you must always expect to pay more than you initially planned, thus, always prepare more funds than you planned. Another thing that you’ll have to take into account is the expenses you’ll have, hence, ensure that you have funds for that as well.
Conclusion
As we mentioned at the beginning of our article, purchasing a house or apartment in Bali is completely different from purchasing one in the country you reside in. Because of this, it’s important that you keep all the aforementioned things in mind, mostly because they’ll make the entire process easier, but they’ll also prevent you from being scammed.
Since you’re now well aware of what you’ll need to do, as well as how you could purchase a parcel in Bali, don’t lose time. Instead, you may want to start browsing different websites in order to find a property, house, or condominium suitable for your requirements, and of course, budget.