Due Diligence Service

Property Legal Services

Due Diligence - Who is it for and Benefits

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, the recording has always been in the form of hand-written records. It is not uncommon to see two official land certificates for the same plot of land. The Indonesian Government has only very recently started on digital records of land certificates. Due diligence acts as a record of investigation and examination of a property before a real estate transaction takes place. It is essential to ensure that the property is legally sound, free from any encumbrances and meets the buyer’s expectations. The goal is to identify potential risks and liabilities associated with the property and to make an informed decision based on the 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.

Steps to Conduct Due Diligence in Indonesia

  • Consult the assets you would like to include on the Deed.
  • Our notary team will assist with drafting the Deed.
  • Once finished, we will contact you to schedule to seal the Deed.

Frequently Asked Questions

What legal aspects should be considered during due diligence for property in Indonesia?

During due diligence for property in Indonesia, legal aspects to consider include:

  • Ensure the seller has legitimate ownership of the property and verify the land title to avoid potential disputes.
  • Check if the property has all the necessary permits and licenses from relevant authorities for its intended use.
  • Understand the zoning regulations to ensure the property is suitable for the intended investment purpose.
  • Identify any mortgages, liens, or legal claims on the property that might impact the transaction.

How long does due diligence for property in Indonesia take?

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.

What are the required documents to perform Due Diligence in Indonesia?

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.

  • Land certificate (Hak Milik), location permit (Izin Lokasi), building permit (Izin Mendirikan Bangunan)
  • Land use permit (Izin Penggunaan Tanah)
  • Any relevant licenses or approvals from local authorities

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Primary Property

Interest Rate

Floating Rate

Primary Mortage

Rate information

Interest rate is 4.7% fixed for the first 3 years, after that, the rate will move to a floating rate (currently 11%)

Requirements

  • Permanent employee/self-employed for at least 1 year in the same company/total 2 years of work
  • Professional/Businessman working for at least 2 years in the same field
  • At least 18 years old or married

General Personal Requirements

  • Photocopy of husband’s / wife’s ID card (if married)
  • Photocopy of Family Card
  • Copy of Marriage Certificate (if married)
  • Photocopy of Tax ID Number of Applicant
  • Salary Slip / Certificate of Income for the last 1 month original
  • Photocopy of 3 months bank statements
  • Developer’s House Booking Letter / Broker’s Cover Letter

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