If you want to buy a freehold property with Bali Home Immo while you are not in Bali, we have you covered. If you want to make sure about the requirements to buy a property, you can also check out this article here. Now, let’s get to the point.

1 . After negotiating the price with the property owner and reaching an agreement, our legal team will create a Memorandum of Understanding (MoU) and/or Pengikatan Perjanjian Jual Beli (PPJB), which is a binding sales agreement. This serves as proof that the property is reserved for you and no one else can buy it.

2 . You'll then digitally sign the MoU or binding sales agreement. We typically use Docusign for this purpose.

3 . Following your agreement, you'll make the deposit payment as previously arranged.

4 . Now, you'll need to initiate a Power of Attorney (PoA) process in your home country, adhering to Apostille regulations. You can nominate a trusted individual or our sales agent to represent you and sign the documents on your behalf. This is also when you'll make the remaining payment.

5 . Once the PoA and final payment are completed, your chosen representative will sign the Akta Jual Beli (AJB), or Sale and Purchase Agreement.

6 . After your representative signs the AJB, the title deed will be transferred from the previous owner to you, making you the new owner of a freehold property in Bali.

Leasehold

Leasehold properties are a popular choice for many foreigners investing in Bali. You can check this article here to know more about the requirements to have a leasehold property in Bali.

1 . Once you've agreed on the price and terms, our legal team will draft the MoU, which you'll sign digitally.

2 . After digitally signing the MoU, you'll make a deposit payment for the property.

3 . Next, you'll need to complete the Power of Attorney (PoA) process in your home country following Apostille regulations. You can nominate a trusted person or our sales agent to sign the documents on your behalf.

4 . Your chosen representative with PoA will sign the lease agreement in the presence of a notary.

5 . After the lease agreement is signed, you'll need to make the final payment as per your agreement.

6 . Once the final payment is settled, the lease agreement will be transferred to you, officially making you the new owner of a leasehold property in Bali.

Buying Process On-Site

Freehold

1 . After negotiating the price with the property owner and reaching an agreement, our legal team will create a Memorandum of Understanding (MoU) and Pengikatan Perjanjian Jual Beli (PPJB), a binding sales agreement. This document serves as proof that the property is reserved for you and no one else can purchase it.

2 . You'll then sign the MoU or binding sales agreement.

3 . Following the agreement, you'll make the deposit payment as previously arranged.

4 . Subsequently, the notary will conduct due diligence.

5 . Once due diligence is completed, you'll need to finalize the remaining payment and cover any necessary taxes.

6 . After the final payment, you can sign the final document, the Akta Jual Beli (AJB), or Sale and Purchase Agreement.

7 . With the AJB signed, the title deed will be transferred from the previous owner to you, officially making you the new owner of a freehold property in Bali.

Leasehold

1 . Once you've agreed on the price and conditions, our legal team will draft the MoU, which you'll sign digitally.

2 . After digitally signing the MoU, you'll make a deposit payment for the property.

3 . Next, the notary will conduct due diligence, which typically takes around 7 working days. This thorough process ensures all documents are in order.

4 . Following due diligence, you'll sign the lease agreement in the presence of a notary. The lease agreement becomes effective after you complete the payment.

5 . After signing the lease agreement, you'll need to make the final payment as per your agreement.

6 . Once the final payment is made, the lease agreement will be transferred to you, officially making you the new owner of a leasehold property in Bali.

Those are how the buying process works if you choose to purchase Bali property with Bali Home Immo. Regardless of where you are located, abroad or in Bali, we are fully prepared to provide you with first class service. In addition, you can explore our carefully selected collection of properties that includes land, apartments, villas and much more, not only in Bali but also in other regions.

Disclaimer: The information provided in this article is intended for general informational purposes only. It should not be considered as legal advice or used as a basis for any legal, financial, or real estate decisions. Bali Home Immo does not accept responsibility for any consequences or losses arising from the use of this article's content. We strongly advise all readers to consult with their legal team, financial advisors, or real estate experts before making any property-related decisions, investments, or legal agreements. Property transactions involve a range of complex legal and financial considerations that may vary based on specific circumstances. This article is not a substitute for professional advice, and its content may not reflect the most up-to-date legal regulations or market conditions since this article is written. Readers are encouraged to seek personalized guidance to ensure that their property transactions comply with all relevant laws and regulations and are in their best financial interests.

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Whether you're an investor, a foreign buyer, or someone working remotely, POA gives you the flexibility to complete the sale legally and efficiently, as long as it's drafted carefully and notarized properly.

Remember: always consult with a professional notary or legal advisor in Bali before signing any POA. If you need help, check with the Bali Notary Association or a trusted real estate agency that works with foreign buyers.

To list your villa with us, click here

4. Which area offers me the highest ROI yields?

ROI stands for Return on Investment. The ROI percentage shows how efficiently an investment is earning profits compared to its initial cost. A positive ROI means the investment has earned more profit than its cost, while a negative ROI means the investment has caused a net loss. 

In Bali, popular areas such as Canggu, Seminyak, and Uluwatu offer the highest ROI for property rental. Each area has a different ROI percentage.

To calculate the ROI percentage, you can use this formula: ROI = Net Profit / Cost of the investment * 100

Contact us to get the ROI forecast brochure

5. What is the buying process?

Bali Home Immo understands that not every client has the privilege to come to Bali for the transaction. The buying process is the step that you have to go through before buying a property with Bali Home Immo, as mentioned below:

1. Agree on price 

2. Sign MOU 

3. Pay a 10% deposit in the Escrow account

4. Due diligence by Notary 

5. Review drafts of final agreements 

6. Sign 

7. Finalize settlement payment directly to seller.

Refer to the article here

6. How long is the Buying Process?

The buying process in Bali usually takes up to 4-5  weeks for leasehold and freehold ownership. The process includes document submission, compliance checks, and approval.

7. Can I get a loan in Bali?

Indonesian banks are rarely giving out loan allowances for foreigners due to many factors. However, foreigners can get a loan in Bali if they own a company in Indonesia that also has legal representation. Please note that only freehold owners can get a loan from an Indonesian bank.

For further reading, here’s the article

8. What are the tax implications on my rental and/or purchase?

The Land and Building Tax (PBB) is calculated at 0.1% of the sale value for properties under IDR 1 billion and 0.2% for properties over this value. The sale value of the property (NJOPKP) is assessed by the local revenue office and is paid by the seller for leasehold properties. The buyer doesn't pay any taxes on the purchase of a leasehold property. 

For freehold ownership, the taxes are paid by both seller and buyer.

This tax is divided between land and buildings and is due annually, based on the date specified on the tax notice. 

9. Do you have a notary we can work with? 

Yes. We have a notary we work with, however, you are free to choose your notary as well.

10. What are the notary fees? 

A notary fee is the cost paid to a notary public for witnessing and certifying the signing of important documents, ensuring their legality and authenticity.

At Bali Home Immo, the notary fee is 1% of the property price and is paid by the buyer.

Book a meeting with us if you have other inquiries.