If you are one of those who wonders as to how can foreigners buy land in Lombok, read this article thoroughly.
Under the Agrarian Law, foreigners can buy land in Lombok through a foreign owned company with Right to Build Title (HGB). Yet, in many instances, a lot of foreigners try to buy using a local’s name under a nominee agreement, which is less recommended.
Regardless of your choice, follow below step by step guide on how can foreigner buys land in Lombok.
Ownership Document
There are various types of land ownership document in Lombok. The highest and the safest one is certificate of ownership issued by Land Office. Land certificate issued for individual is normally under Freehold Title. Make sure the land is under proper registration and is free from mortgage and claim of any other parties.
Land & Building Taxes
Under the law, all land and building are subject to annual property tax. The tax rate may vary from one zone to another. Failure to prove that the tax has been paid will hinder the process of property transfer and the rest of interrelated processes.
Land Zoning
Some zones are intended for commercial purposes like tourism and some others for agriculture, residency and industry etc. There are also land which is part of the preservation (forest) zone. Make sure you buying the right land for the right purposes or it’s convertible the intended use.
Land Boundary
It is sometimes necessary to measure the land area to check that the area declared by the owner or the document matches the real land area. The area on the document and the real area may differ due to various causes: mistakes, overlap, erosion etc.
Public Infrastructure
It’s essential to ensure that all basic infrastructure is within reach. Power line is available for connection and water sources is sufficient. Last but not least, the land is accessible through a public, shared or private road.
Consult Your Local Legal Expert
Tto ensure that the land is eligible to transaction and transfer, you may need a Lombok legal expert accompaniment before proceeding to payments.
Payment Terms & Documentation
Depending on your unique situation, it is recommended to do the payment in several installments for security. Pay the deposit as low as possible and do the rest after the proper checks and documentation is lawfully done by a notary.
Landlord may require a full payment before signing the Sales Agreement. If all is in order and your legal expert agrees, you can proceed to payment.
