V. Choosing a Partner/ Nominee and other Trustworthy People

A. Start Looking for Candidate Partners early in the Process

Finding an honest, competent and independent Indonesian "Nominee" (or Partner) is the most important and difficult step in the land purchasing process. In time, your partner will become a close friend, adviser, confidant and assistant. As a signatory to the Nominee Agreement, you will entrust your partner with a substantial amount of responsibility and money for many years in the future. Plus, he is also the one person whose ability to make money (i.e., a commission) is tied your ability to successfully complete a purchase. This makes him the one and only person on Lombok who shares your best interest. All others have split loyalties.

There are an endless number of ways that you can meet a suitable partner. You may have already met a number of local people during one of your visits to Lombok. Remember, just because someone is friendly and likable does not necessarily qualify him to be a good partner. A Partner must primarily be honest, capable of helping you in the land purchase process, and have good communicaton skills. If you meet someone who you like and seems to cares for your best interests, he may be the perfect candidate to be your partner, but can recommend someone who may meets your standards.

B. Look for a Wide Variety of Skills

In your discussions with any of the local people, be careful not to disclose too much information. Keep the conversation hypothetical, such as, "I may want to do business in Lombok someday and want to meet someone who can guide me." If people smell a immediate chance to make big money, suddenly everyone becomes experts (in their own eyes). You are seeking a potential business partner who is both well respected and has good connections within the community. A candidate partner should be able to demonstrate his skills and experience in an interview. You don't need to disclose of the business is starting a restaurant or investing in land. A good partner will have a wide array of skills, including negotiator, arbitrator and problem solver. Remember, this person may be in court with you someday, or called upon to settle a property line dispute with a neighbor. So it is prudent to find a person with broad experience.

People who hold a university degree are good candidates for a partner. Someone who has achieved success in some occupation other than real estate is another good sign. Naturally you will want a partner who you feel is both friendly and honest, but don't trust your intuition alone.

Don't be overly impressed by a man's job title, their nationality, or appearance of success. A successful scam artist can appear just as respectable as a truly reliable business partner. Only hard questioning and checking references should cause you to become more trusting.

Beware of the person who insists their opinion is the only right answer. For example, you may ask the question, "what provisions do you recommend we put in a partnership agreement?" That is a complex question, so be wary of the person who says, "I use the one recommended by all the major law firms; it is the only way to be certain the contract is legal." A little research on the Internet will reveal a broad difference of opinions among the legal community about partnership contracts. More importantly, working with someone who claims to have all the answers is both frustrating and dangerous. A good partner should be willing to share and discuss all options and recognize the fact that you are capable of making intelligent contributions to the discussion, even if you are only a neophyte.

C. Other Trustworthy People

Finding other trustworthy people to work with is another step that is optional. You probably will meet many people with whom you like and feel comfortable talking to but do not come up to the standards of being a business partner. If you partner is not intimately familiar with buying land, you may also need a processing agent to process a certificate. You may want someone who can give you ideas and cost estimates to make land improvements, do some construction work, or give you other ideas and advice. IIt is useful and comforting to have people in your group of friends who you can talk to and trust on a variety of subjects, knowing they will be loyal and keep conversations confidential.

Making a promise, commitment, or even holding casual conversations with anyone before you have established their credibility is dangerous. Each community within Lombok has a well-established gossip chain. Even if someone does not mean to intentionally cause you harm, the inability to keep business conversations confidential will mean that the whole community will know your business the next day. Again, this holds true for people of all nationalities. Just because someone is a foreigner doing business in Indonesia does not automatically make him or her trustworthy. Before you talk seriously with anyone, it is best to do a little homework and make sure they are trustworthy to hold a private conversation confidential.

D. How to Check if Someone is Trustworthy

Here is the process I recommend before you start a business relationship with anyone:

Ask for names and e-mail address of past foreign clients. Anyone who has had a good experience working with someone on Lombok will be more than willing to discuss their experience in the privacy of an e-mail. Qualified people keep contact with old clients. If someone cannot (or will not) give you at least three e-mail references, they are either inexperienced or have performed poorly. You are at risk of loosing money.

Search the Internet, especially social networking sites and discussion forums, for people who are familiar with the area where you are considering buying land. Often long-time expatriates who giving advice about the area they live and regularly make use these Internet sites. This is not 100% reliable. You never be certain who you are talking to and what special interests they may have. However, you may receive constructive comments about the trustworthiness of a specific individual.

Seek out credible sources in the community to ask for an opinion. Someone such as a successful business owner in town has watched for years as people around him spend ill-gotten gains by cheating tourists. These dishonest actions often create a bad reputation for the entire community, which can impact his business. So often the community leaders are usually willing to talk freely and honestly about who has caused problems in the past.

Do not rely on opinions or gossip that you may hear in a casual situation, especially in the area where you want to buy. As a newcomer, you are likely to meet local people who are somehow connected with selling property. This can be a hotel employee or someone who acts as a tour guide. Since they would like to get a part the "action", casting a doubt about another man's reputation is in their own self-interest.

Once you have chosen a partner, and perhaps one or more experienced people with you whom you can trust, the whole process of buying land gets easier.

"SuperPartner"

I.Important Facts to Consider

A.Is ownership risky?

B.Lombok: A Different Culture

C.Living on Lombok

II.Summary Steps to Buying Land

A. Get familiar with Lombok

B. Choosing a Partner("Nominee")

C. Find a parcel of Land

D. When You Find a Parcel

E. Negotiate the Price

F. Comprehensive Due Diligence.

G. Initiate Title Transfer.

H. Issuance Land Certificate

III. Visit All Lombok First

A. From Tourist to Resident

B. Explore the Hidden Lombok

C. Starting a Checklist

IV. Legal Issues

A. The Issue of Ownership

B. Foreigners Solve the Problem

C. The Nominee Method

D. Foreign Direct Investment(PMA)

E. One Final Option

V. Choose Partner and Team

A. Start Looking Early

B. Wide Variety of Skills

C. Other Trustworthy People

D. Check if Trustworthy

VI. Places that Sell Land

A. General Warnings

B. Real Estate Companies and Websites

C. The Local Tour Guide

E. The Local Gossip Mill

F. Miscellaneous Sources

VII. When You Find a a Parcel

A. Initiate Early Discussions

B. The history of the land

C. Get to know the Players

D. Slowly Get to the Price

VIII. Through an Engineer's Eyes

A. Clear access

B. Public facilities

C. Everything Belongs to you?

D. Check the Drainage

E. Check the Stability

F. Double Check Everything

IX. Settle Price and Terms

A. Necessary Preparations

B. Establish Proper Atmosphere

C. Conduct the Negotiations

D. The Issue of Parcel Size

E. Money is Not the Only Issue

F. Giving a Deposit?

X. The Written Agreement

A. How do I Pay Money?

XI. Due Diligence and Research

A. Risk versus Benefit

B. Due Diligence

C. Checking Public Records

D. Digging for the Unwritten Truth

XII.The Notaris Office

A. Settling the Final Terms

B. Notaris - Initiate Title Transfer

C. Sign the Nominee Agreement

XIII. Finally a Certificate