Let’s say you’ve decided on the property you want to buy in Bali. You like the location, the quality of the build, the projected returns, and the way your agent has been guiding you through the whole process. You’ve done the site inspection and you’ve agreed to the price and payment structure. Exciting times lie ahead as you start to imagine how you’re going to make your dream home in paradise your own.

However, it’s important to navigate all legal aspects of the transaction carefully. The last thing you want is for the deal to fall through. One crucial person in the property transaction process is the notary, who acts as an impartial witness to various legal documents, including property transactions.

The notary’s primary function is to verify the authenticity of signatures, certify the accuracy of documents, administer oaths, and ensure compliance with applicable laws and regulations, helping to ensure the smooth transfer of property ownership and safeguarding the interests of both the buyer and the seller.

Notaries act as neutral witnesses and ensure that the parties involved understand the implications of the documents they are signing. In contrast to a notary, a lawyer is a legal professional who has completed a law degree and is licensed to provide legal advice and representation. Lawyers have extensive knowledge of the law and can offer legal guidance, draft legal documents, negotiate on behalf of their clients, and represent them in court.

While some lawyers may also be notaries, not all notaries are lawyers. In many countries, including Indonesia, individuals can become notaries by meeting specific educational requirements and passing an examination. However, notaries cannot provide legal advice or represent clients in legal proceedings unless they are also licensed attorneys.

In the usual purchasing property transaction process in Bali, you’ll be dealing with a notary. Most real estate companies have their preferred notary, but if you’re not happy with them for any reason, talk to your agency and change them.

Below is a summary of a notary’s responsibilities & procedure:

Preparing and Reviewing Documents

The notary collaborates with both the buyer and the seller, ensuring that all required and relevant property documents, such as the sale and purchase agreement, land certificate, building permits, and other supporting paperwork are prepared accurately and reviewed thoroughly and comply with legal requirements. This stage can take a few days to a couple of weeks, depending on the complexity of the transaction and the promptness of the parties involved.

Title Transfer

The notary facilitates the transfer of property ownership by drafting and overseeing the signing of the deed of transfer. This document transfers the legal rights from the seller to the buyer and establishes the new ownership.

Due Diligence

Notaries conduct thorough due diligence on the property to ensure there are no encumbrances, disputes, or other legal issues associated with it. This step protects the buyer from potential future complications.

Escrow Services

In some cases, notaries act as escrow agents, holding funds from the buyer until all necessary conditions are met, ensuring a secure and fair transaction for both parties.

Time Required for Notarization

The time required for notarization can vary depending on various factors, including the complexity of the transaction, the responsiveness of all parties involved, and the workload of the notary. Typically, the entire process from initial consultation to completion can take several weeks to a few months.

Signing the Deed and Transfer

Once all the documents are in order, the parties meet at the notary’s office to sign the deed of transfer. This step typically requires all parties to be physically present. The signing process itself can be completed within a few hours.

Post-Transfer Procedures

After the signing, the notary registers the transfer with the local land office and ensures that the property’s new ownership is officially recorded. This administrative step may take a few days to complete.

Fees Involved

Notary fees for property transactions in Bali are usually calculated based on the value of the property. The notary’s fee is regulated by the Indonesian government and is typically set at a percentage of the property’s sale price. The exact percentage may vary, but it is generally around 1% to 2.5% of the property’s value.

Additionally, there may be other costs associated with the notary’s services, such as document preparation fees, administrative fees, and taxes. It is advisable to inquire about the complete fee structure upfront to avoid any surprises later in the process.

About Mirah Investment & Development:

Mirah Investment & Development is Bali’s leading property developer with 11 ongoing development projects currently under construction. Established as the market leader with years of experience in bringing luxury developments to the most sought-after locations across the Indonesian archipelago, Mirah Investment & Development has built an extensive in-house team of locals and expatriates offering end-to-end services from architecture and design, property management, and legal support, to taxation and immigration, for all clients.

Contact the sales team to learn more

Contact us today to secure your slice of luxury, tropical living.

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