Why are Villas leased for periods of 15-30 years and sold outright?
In Indonesia, a foreigner can not own a land directly, they can only lease it. Therefore, most properties are leased for periods of 15 to 30 years. At the end of the leased term you can extend for another period according to negotiations with the landlord.
How long it takes to own the property once I made a decision to buy the Villa? The process is pretty straight forward and involves two private individuals and a single recording so it takes 2-3 weeks usually to complete.
How can I ensure the property clear of all leans or obligations? In Indonesian's real estate transactions there is a single Notary (a certified lawyer/counsel) who is a neutral third-party and paid a fixed 1% of the transaction proceeds. As part of his/her responsibilities, the Notary must conduct a thorough due-diligence process to inspect the land ownership, property ownership, building permits, and make sure that all governmental approvals are in orders and that there are no leans or obligations on the title. If such leans or obligations are found, they must be disclosed, written into the agreement and addressed.The Notary has completed that due diligence process and Dream Villa is clean from leans or unknown obligations.The notary prepared a lease agreement and it should be reviewed by the Buyer (or the buyer's legal advisor) before signing the agreement.
Do I need to be in Bali to purchase the Villa?
No. 72% of our clients are foreign investors who have purchased a property without visiting the Villa. They based their decision on the Income Analysis, Villa Details, Video Tours and Pictures of the Villa. They realized that Bali is an attractive investment opportunity and are happy with the return they receive on their investment. We specialize in properties that are self-managed and have a professional staff and management company that mange the property for you. Our properties are designed for foreign investors that want to collect the passive income, therefore, don’t feel that you must visit before making the purchase decision – we are providing all the insight and analysis needed to make an educated decision. That said, we will happily welcome you and show you around if you do decide to fly over and visit Bali. Some clients want to “feel” the place before making an investment decision and we respect that.
What is the legal fee to complete the purchase?
The legal fee of the Notary is standard and fixed at 1% of the value of the transaction ($1,000 for a $100,000 purchase price)
Who takes care of the Villa on a daily basis and fix things if needed? The management staff are taking care of the Villa on a daily basis. They clean the Villa daily and will cater to any issue they find or that your renters notify them about. The staff is on-premise so they manage all aspects of the daily operation of your villa so you can enjoy life in your home country and just see your investment generating passive income and appreciate in value. The staff will service your short-term rental guests (check in and out, 24/7), They’ll clean the villa daily, maintain the pool and the surrounding grounds with full gardening services and can even cook breakfast for your guests in the Villa. They will also fix anything that need maintenance, including plumbing, electricity and any construction related issue.
What is the process of buying a Villa?The Seller will send a Memorandum Of Understanding (MOU) to the Buyer which details the transaction details.Buyer signs the MOU and fund 20% of the purchase price to an escrow account held by a Notary (lawyer). The Notary will send to Buyer the Leasehold Agreement for review.Once the Leasehold Agreement has been finalized, signed and the balance of the purchase price (80%) was funded to the escrow account, the ownership is declared fully transferred to the Buyer and the Leasehold Deed is provided to the Buyer.The Notary will notify the management company of the Change of Ownership and introduce the Buyer to the management company. All future rental income would be received by the Buyer.