XIII. Go to the Notaris Office

A. Settling the Final Terms of Purchase

Once the due diligence research is complete you may need to make adjustments to the Purchase Agreement with the landowner. Any new issue that arises during due diligence will probably have some monetary implications. The most common problem is the issue of an off-property access road. The second most common problem is the need to compensate a neighbor or a family member to get clear title and solve any festering problems.

Numerous other issues may arise which are particular to your property. In my experience, these problems require hard cash to solve. If you have already negotiated the lowest possible price from the property owner and reduced the commissions to a minimum, the only one left in the game with extra money is you. Of course one option is to walk away from the deal. I recommend you do not let your emotions take over and do something you would later regret. If it is any comfort, having to pay a little extra at the end is very common.

B. Go to the Notaris to Initiate Title Transfer.

After the price and terms of purchase have been met and you are satisfied that the results of the due diligence research indicate the property is free and clear of all encumbrances, the next step is to formally initiate the purchase process.

Generally, your partner (or processing agent) will give the relevant purchasing details and other legal documentation to Notaris office. In about a week, the Notaris will have prepared all of the relevant purchase documents. (see note below). The landowner and your partner will go to the Notaris office and sign, stamp and seal the purchase documents. At the same time, you may be paying all or part of the remaining money owned to the owner of the land, depending on the conditions of your previously negotiated agreement.

Note: The landowner and your nominee/designee will execute one of the following transfer documents:

• (a) an Akta Jual Beli ("AJB" or "Sale and Purchase Agreement") pursuant to which 100% of the purchase price is paid;
• (b) a Perjanjian Pengikatan Jual Beli ("PPJB" or "Agreement Binding for Sale and Purchase") pursuant to which a deposit is paid subject to payment of the balance of the purchase price.

C. Sign the Nominee Agreement

Assuming you and your partner have come to terms on a final Nominee Agreement and the document has been translated into both Bahasa Indonesia and English, this is a good time to sign and record your Nominee Agreement.

In fact, this is the only reason why you will need to go to the Notaris Office. Your attendance is not required when the land transfer documents are being signed. Many foreigners go along as an observer.

Once the Notaris has reviewed and prepared all necessary documents, they will be sent to the Land Office for final processing. BPN staff will visit the property to visually check that the paperwork matches the actual site conditions. A formal boundary survey will be conducted and a plot map drawn up showing the names of neighbors, roads, etc.

In most instances a 6-month period is set aside for neighbors or anybody else who has a valid claim on the property to come forward and make their case.

The exact length of time that is required to process the land certificate remains one of the great mysteries on Lombok. The rate of processing is largely determined by how much you are willing to pay. I have had a high ranking government official tell me, "Don't ask how long it will take, ask how much I need to pay to get it done by a certain time."

Other factors come into play as well. If the person processing your certificate frequently visits the BPN office, it seems possible to 'shame' the staff to put your paperwork on top of the stack. Also, a processor or partner who is involved in politics and is friends with local officials also seems to command some attention.

External events, such as new regulations or a change of staff can influence the processing time for a Certificate. The issue of timing and money you are prepared to pay is a matter that you need to discuss with your team to develop a strategy.

Finally, the land transfer will be recorded in the official records. One day your partner will hand you, or send you by courier the final land Certificate. After traveling a long and often painful road, the sight of the blue folder that reads, "Sertifikat" is a very welcome sight. Congratulations on your new purchase.

"..taking care of business"

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