First step is to let PRESTIGE PROPERTY BALI know that you want to make an offer and we will approach the seller. If he agrees with your offer we will move forward with a formal stage where both parties will sign a contract called OTP (Offer To Purchase)
Next step is to choose a notary. The notary has to be chosen by the buyer and the fee charged by the notary is usually around 1% of the agreed selling price. The notary will draw the sales and purchase agreement in Indonesian languages to legally be binding. Upon request the notary can also translate the binding agreement in English language but here in Indonesia the legal binding agreement is the Indonesian language.
Then transfer the agreed deposit (usually 10%) to be paid and held in the notary escrow account. Do not, under any circumstances, pay the deposit to the seller (owner) or the agent. Once a deposit has been received, the seller then has to agree to take the property off the market.
After a buyer and seller have generally agreed upon the price and all other terms and conditions for a property transaction, the parties usually sign a preliminary agreement, a binding sale and purchase Agreement or a binding leasehold right agreement (Perjanjian Pengikatan Jual Beli or Perjanjian Pengikatan Sewa Menyewa) to formally agree and reflect the conditions of the proposed transaction.
Following execution of a binding agreement, the buyer would, through the legal representative or notary, conduct due diligence on the property. The due diligence is done by the appointed notaries and normally 2-3 weeks.
In order to formally conclude the acquisition of the property as contemplated under the binding agreement, the parties would subsequently enter into notarial documents reflecting the acquisition of the property. Until full payment of the agreed selling price is made and any other conditions for completion are met, the notary would hold the land certificates or deeds relating to the property transaction in escrow.
Once the seller has received full payment and all taxes accruing from the transaction have been paid, the title of the property is transferred and copies of the deeds released to the respective parties.