Even though there are several restrictions on foreign property ownership in Bali, foreigners still have the chance to buy real estate in several ways. One of those ways is under the Hak Milik Atas Satuan Rumah Susun (HMSRS) title, which always allows individuals to own a condo in a multi-story building in Bali. This type of property ownership is also known as strata title ownership and has been used more often over recent years.
What is Hak Milik Atas Satuan Rumah Susun?
Locally, strata title ownership in Indonesia is called Hak Milik Atas Satuan Rumah Susun (HMSRS). This type of property ownership pertains to the rights of units in multi-story buildings. Therefore, in a multi-unit building, each unit can be bought and sold separately through the HMSRS.
It is important to note, however, that a foreigner’s ownership only pertains to the unit and a common right to use the facilities of the building but not the land. The land remains under the name of an Indonesian national.
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How to buy a unit in a multi-story building in Bali under HMASRS?
There are four steps to get Hak Milik Atas Satuan Rumah Susun in Bali.
1. Find a suitable unit
In looking for a unit, regulations set minimum prices that depend on the location, ranging from IDR 750 million ($48,750) to IDR 3 billion ($195,000) for foreign buyers. Due to the high cost, we recommend seeking assistance from a real estate agency to find affordable units.
2. Legal and administrative compliance
This step involves real estate due diligence to ensure compliance with regulations, especially for foreign property buyers. For an HMSRS title, verifying the developer’s compliance with necessary licenses and permits is crucial before they can issue an HMSRS title.
3. Sign the agreement
We recommend having a lawyer or real estate agent accompany you when drafting and signing a purchase agreement between the seller and buyer that outlines all terms and conditions, including tax payments. Afterward, the seller should submit the land certificates and other relevant documents to the Land Deed Conveyancer (PPAT).
4. Issuance of HMSRS in Bali
Finally, once done with all the steps, the issuance HMSRS certificate is issued to the purchaser. After completing all payments and documents, both parties should sign the land transfer deed and register by the PPAT in the local land office in Bali.
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Get help with buying property in Bali
HMSRS is a basic form of property ownership in Bali and has significantly developed the country’s real estate industry. Acquiring an HMSRS title in Indonesia can be complicated, especially for foreigners who need to become more familiar with the country’s laws and regulations. Therefore, seeking the assistance of professionals such as real estate agencies is highly recommended to ensure compliance with legal requirements and simplify the process.
Frequently Asked Questions (FAQ)
What is the difference between strata title and leasehold?
Strata title refers to ownership of a unit within a multi-level building, where the owner has the exclusive right to use and occupy the unit. A leasehold is where the owner has the right to use and occupy the land for a specific period, as stated in the lease agreement.
Can you own freehold property in Bali?
Is strata title a good investment?
Strata titles can be a good investment since they are typically more affordable than standalone properties, and they can generate a steady income stream.