Planning to build in Bali? It’s essential to understand that securing the land is only the first step. Access to that land, and the complexities of land ownership, can significantly impact your construction project. This article will explore crucial aspects of land access and ownership in Bali, offering insights into potential challenges and how to navigate them successfully.

The Importance of Legal Access

When buying or leasing land in Bali, you must ensure you have legal access. Often, land is accessed by crossing someone else’s property, or even land belonging to a temple. This can lead to complications if not properly addressed from the outset. It is necessary to fully inspect the land survey included with the land certificate to verify that legal access exists. It’s important to ensure that access is not only present, but also reasonable; a narrow strip of land won’t work if you intend to drive a car to your property.

Potential Dangers in Land Ownership

Many people are aware of the potential dangers of land ownership in Bali. Due diligence is paramount before making a purchase. It is wise to consider a deposit as something you might not get back. A competent notaris (notary) can carry out a thorough investigation of the property’s ownership and circumstances.

Foreign Ownership and Nominees

Foreigners are not permitted to own land in Indonesia. The practice of using nominees for Hak Milik (freehold title) ownership is risky. Arguments with your nominee, their family, or their unexpected absence can lead to losing the property.

• If a foreigner inherits land, they must sell it within 12 months.
• It’s advisable to avoid nominee arrangements due to the potential legal and financial risks.

Case Studies: Real-World Access Issues

Here are a few real-world cases that highlight the challenges of land access:

• Case 1: Access and Shared Ownership: A property owner had access through a strip of land they owned. A neighbor blocked it, demanding payment for its use. Despite the owner having legal documentation, a settlement had to be negotiated, demonstrating that sometimes, power dynamics and local influence can trump legal rights.
• Case 2: Access and Subdivision of Land: An expatriate leased land with plans to subdivide. The plan failed because the land was zoned for agriculture, and permits for subdivisions and public road access were needed. Furthermore, foreigners may only be allowed to “own” one piece of land. This underscores the need for thorough due diligence. Zoning is a basic consideration that your legal team should never miss.
• Case 3: Access Over Community Land: An expatriate’s property access was via a road owned by a local banjar (community organization). The banjar demanded a significant sum of money for access, demonstrating how community involvement can significantly increase a property’s cost.

Variations in Legal Interpretations

Legal interpretations can vary among notaries, agents, and government officials. Different regions may have different bylaws, leading to confusion. Individuals may also exploit the rules to create difficulties and demand additional payments.

How to Address Land Access Problems

Here are some approaches to dealing with land access issues in Bali:

• Keep Things Simple: Be prepared to walk away if things become too complicated.
• Seek a Second Opinion: If you have doubts, consult with multiple sources.
• Engage with the Community: Remember that Balinese society is structured around respect and community. Upsetting the community can make your life difficult.
• Adopt a Measured Approach: Avoid anger and aggression, which are generally ineffective.
• Seek Local Advice: Consult with respected community figures who can help mediate situations.
• Be Prepared to Compromise: Often, some form of payment will be required.

Understanding Balinese Society

Balinese society is hierarchical, with wisdom and respect as its cornerstones. It’s important to recognize that while you may be purchasing land from an individual, you will have an ongoing relationship with the community. They expect you to respect them and treat them with dignity.

Conclusion

Land access and ownership in Bali are complex issues. Thorough due diligence, involving local expertise, and engaging with the community are crucial. Don’t underestimate the importance of legal access, clear land titles, and community relations. By understanding these aspects, you can minimize risks and navigate the challenges of building in Bali more successfully.