BALI: Navigating the Bali Real Estate Market: A Smooth Transaction Guide

Investing in Bali’s breathtaking landscapes and vibrant culture is a dream for many. But navigating the intricacies of the real estate market can be daunting. Elysium One is here to guide you through every step of the process, ensuring a smooth and successful transaction.

Buying Your Dream Bali Property:

1. Making the Offer:

• Start by expressing your interest to Elysium One.
• Formalize your intention by requesting to sign an ‘Intend To Purchase’ (ITP) contract. This signals your commitment to both the seller and the agent.
• Elysium One will present your offer to the seller. A mutually signed ITP indicates a successful negotiation.

Note: Even if you’ve seen a property with a different agent, Elysium One can seamlessly assist with the purchase. We prioritize a professional and transparent experience.

2. Choosing a Notary:

• You will need to select a notary who will draft a detailed sales and purchase agreement in both Indonesian and English.
• The notary typically charges between 0.8% and 1% of the agreed selling price.

3. Deposit Transfer:

• A standard deposit of 10% of the property price should be transferred to the notary’s escrow account.
• Never pay the deposit directly to the seller or agent.
• Upon receiving the deposit, the seller is obligated to remove the property listing from the market.

4. Signing Preliminary Agreements:

• Once price negotiations and conditions are settled, both parties will sign a binding sale and purchase or leasehold right agreement, outlining the terms of the transaction.

5. Conducting Due Diligence:

• Through your legal representative or notary, investigate the property’s credentials. This process, typically conducted by the chosen notary, takes around 2-3 weeks.

6. Finalizing the Acquisition:

• Both parties will enter into official notarial documents, finalizing the property acquisition.
• The notary holds all property-related certificates or deeds in escrow until full payment is settled and all prerequisites are met.

7. Transferring Property Title:

• Once full payment is received and all transaction-related taxes are settled, the property title is transferred.
• The deeds are then released to the concerned parties.

Selling Your Bali Property:

1. Selecting the Right Agent:

• Bali’s property market is complex, making choosing the right real estate agent crucial.
• While you can engage with multiple agents, opt for 3-4 agents you trust to represent you professionally.

2. Understanding the Costs:

• Beyond the agent’s fee, selling property in Bali incurs other charges, particularly tax-related ones.

3. Legal and Taxation Implications:

• Indonesia has specific tax obligations for foreign investors. Consult with a qualified legal advisor or lawyer.

4. Tax Breakdown:

• Tax rates vary depending on the property type (freehold or leasehold).
• Leasehold property or land: 10% income tax (PPH). Land & Building tax must be settled before the sale.
• Freehold property or land: 2.5% for the seller and 5% for the buyer income tax (PPH). Again, Land & Building tax must be up-to-date before sale.

Elysium One is your trusted partner in navigating Bali’s real estate market. Contact us today to discuss your unique needs and discover the perfect property to fulfill your Balinese dreams.

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