Real Estate Flores, invest in Indonesia: the 4 documents drawn up at the Notary
There are four required documents:
-the first one establishes that the foreigner gives money to the Indonesian name holder to buy land and property and the Indonesian gives this land and property to the foreigner to use it, on his own free will. The document also describes that the name holder grants the foreigner permission to sell, to rent it out or to rebuild the house or property. It states that the agreement, if necessary, transfers automatically to the legal heirs, from both the foreigner and the name holder. It states that all of the property costs (electricity, water and taxes) have to be paid by the foreigner. The official ‘Sertipikat’ will be in the foreigners possession as well as the statement of cession, signed by the name holder. It is only with this ‘Sertipikat Hak Milik’ that it is possible to sell the land.
-in the 2nd document the property’s selling is granted to the foreigner. The name holder gives his explicit permission to do so.
-in the 3rd document the name holder gives permission to rent out the house or property.
-the 4th document commits the name holder to co-operate, if the time ever comes that foreigners can own land and property in Indonesia, in making the foreigner being the new name holder on the ‘Sertipikat’.
In case the law changes in the disadvantage of foreigners, the name holder will co-operate in changing the agreement into a lease-contract of 50 years with option for another term.