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Buy a condo in a multi-story building in Bali: HMSRS title explained!

condo in multi-story building in bali

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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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Do you want to buy property in Bali? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our extensive knowledge and local experience, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.

With our expert team, you won’t have to navigate the complexities of the real estate market in Bali alone. For further information on how we can assist you, kindly drop your details below or email us at hello@ownpropertyabroad.com. Let’s start working on your property success story today!

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Conclusion

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?

Only Indonesian nationals can own freehold property in Bali. Foreigners can own property only through a Bali PT PMA, Indonesian nominee, a passport, or under a Hak Pakai (HP) or Hak Guna Bangunan (HGB) title. 

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. 

Bali property expertise call

Our Bali property expert call is here to help you address all your queries regarding buying property in Bali. We will cover all the essential topics, from land titles and visa requirements to local rules and regulations. We even guide you through the buying and building processes and offer insights into investment potentials and costs. Plus, we’ll recommend the best agents and agencies in Bali to help you make the most of your investment.

The best part? You can tailor the session to your specific needs by asking any questions you have.

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Leave your name and email below – We will reach out to answer all your questions and assist you with buying property in Bali.