Property Legal Services
The process of buying and leasing property in Indonesia could be easy if you have a comprehensive understanding of your rights as a buyer/lessee/lessor. There are, however, a range of issues that may affect your future investment.
For decades, property registration was carried out through handwritten records. It was not uncommon to find two official land certificates for the same plot of land. The Indonesian government recently launched a digital land certificate system. Due diligence serves as investigative documentation and property inspection before a real estate transaction takes place.
This is essential to ensure the property is free of legal issues, free of encumbrances, and meets the buyer's expectations. The goal is to identify potential risks and liabilities associated with the property and make a decision based on those findings.
Engaging a reputable and experienced legal consultant can significantly contribute to a successful due diligence process in Indonesia, as it ensures that potential legal risks are identified and addressed, providing clients with valuable information for making informed business decisions.
There are various types of due diligence conducted in business transactions, each focused on a specific aspect of the company's financial position. The most common is financial due diligence, which analyses financial statements, cash flow, and projections to assess the company's financial health.
Legal due diligence examines contracts, litigation, regulatory compliance, and asset ownership to identify potential legal risks. Commercial due diligence evaluates a company's market position, customers, competitors, and growth potential.
In addition, there is operational due diligence that assesses the efficiency of various types of operational costs and internal systems, environmental due diligence to identify environmental risks and liabilities, tax due diligence to check tax compliance and potential company tax liabilities, and HR due diligence that analyses organisational structure, employees, and human resource-related issues.
During due diligence for property in Indonesia, legal aspects to consider include:
Generally, due diligence for a property in Indonesia can take anywhere from a few weeks to a few months. Connecting with a reliable legal consulting agency like Lets Move Group will be able to provide more tailored information based on the specific circumstances of the property transaction.
The essential documents for property due diligence in Indonesia typically include all types of land documents according to the applied regulations. The documents can be in the form of: - A land certificate (Hak Milik), location permit (Izin Lokasi) - Building permit (Izin Mendirikan Bangunan) - Land use permit (Izin Penggunaan Tanah); - and any relevant licenses or approvals from local authorities.
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Our journey began in 2016, with the sole aim of being the best real estate agency in Indonesia. Over time, as our business grew and developed, we began to focus on real estate finance solutions and revolutionised the property finance industry in Indonesia. Find Out More»
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