Don’t spend any penny before you read these three essentials in buying property in Indonesia!

1. Ownership

The ownership status of your coveted property has to be clear.
Is it owned by an individual or a (developer) company?
The certificate has to be under the same name as the seller. But what if it is under a different name? Then you have to understand the relationship between the seller and the person/company whose name is listed on the certificate. The seller may be the heir of the latter or in some kind of partnership. If the status is based on inheritance, you have to make sure that the other heirs (if any) agree with the transaction.
Ownership can also be in a form of Freehold, Right of Use or Right to Build. The period of use is a way to differentiate the three.

2. Location

Once you have a crystal clear view of the ownership status, then the next essential thing will be the location. When I say location, it will be more about the zoning of the desired property. It will be a waste if you buy a property in a green or farming zone when what you want to build is a holiday house. And a property within a sacred area zone will also complicate the permit process.
Although many people overlook the risk, it would not hurt to have an insight.

3. Accessibility

After you consider both aspects above, you should find more details about the property’s accessibility next. When you want to build a residence on the property, accessibility is not limited to road access(especially when the location is not the roadside), but also electricity and water availability.

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Ni Luh Yunaelis, SH

Member of Indonesian Advocates Association (PERADI). The alumnae of the Faculty of Law, Udayana University, Bali, previously joined Vidhi Law Office as a Junior Advocate (2014-2016). She started her first carrier as an Advocate Assistant at Austrindo Law Office (ALO) in 2010. During her time at the lawyer’s office, Yuna learned directly from Austrindo’s founder , a lawyer who was an Australian citizen. Not only learning aspects of Indonesian law, but also the work ethic that is adopted at work.
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