It is often the case that before starting a business in Lombok, you may want to buy land first as you can’t really run your (hotel) business without it. Therefore, understanding a comprehensive property due diligence checklist in Lombok is crucial.
Intuitively, everyone wants to buy safely but sometimes they are not sure where to start. This article provides you the property due diligence checklist in Lombok which is proven to work well. Nevertheless, please note that the list may vary depending on the unique situation of each land and it’s location.
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Property Investor
Property Due Diligence Checklist in Lombok
1. 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. Make sure the land is under proper registration and is free from overlapping, mortgage and claim of any other parties.
2. 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.
3. Spatial Plan
Some zones are 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 buy the right land for the right purposes or it’s convertible to the land of your purpose.
4. Land Boundary
Sometimes it is necessary to re-measure the land area to check that the area matches the real land area that the owner claims or the document shows. The claim and the real area may differ due to various causes: mistakes, overlap, erosion etc.
5. Public Infrastructure
It’s essential to ensure that all basic infrastructure is available and accessible. For instance, power line is available for connection and water sources is sufficient. Also make sure that the land is directly accessible through a public, shared or private road.
6. Payment Terms
Depending on your real unique situation, we recommend you 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 done.
6. Building Permit
Please note that if you are going to buy a ready house or villa, you must also check whether or not the house or the villa has a Building Permit, business permits (if it is commercial) and other related permits.
