Summary of the Indonesian Certificate of Title known as Hak Pakai atas Tanah Hak Milik

Bay View Hill offer purchasers a fully secured and transferable exclusive right of use of the land on which their Villa is constructed for an initial period of 100 years. Ownership of the Villa itself will be transferred directly to the purchaser.

The exclusive right of use of the underlying land will be contained in a Certificate of Title known in Indonesia as “Hak Pakai”.

“Hak Pakai” means “Right of Use” and is the only certificate of title to land, recognized and sanctioned by Indonesian Law, which can be held personally in the name of a foreign purchaser. The Hak Pakai certificate of title is reserved exclusively for foreign individuals, so foreign companies cannot obtain the title; the foreigner may only hold one Hak Pakai title in Indonesia at any given time.

A special variation to the Hak Pakai title to be offered by Bali Bay View Hill is known as “Hak Pakai atas Tanah Hak Milik” which means “Right of Use over Freehold Land”. This form of Hak Pakai title effectively “floats” above and charges the underlying freehold title known as Hak Milik, which title is reserved exclusively for Indonesian nationals.

In order to create this form of Hak Pakai title, the owner of the freehold Hak Milik title executes with the foreign purchaser, before an Indonesian Notary, various Notarial Deeds and Official Land Deeds which vest the exclusive right of use of the property in the foreign purchaser for as many consecutive 25 years terms as are agreed between the freehold owner and the foreign purchaser.

Bali Bay View Hill will offer the foreign purchaser an initial 25 years Hak Pakai title together with three pre-paid 25 year extensions so that the foreign purchaser achieves a 100 year exclusive right of use. Subsequent to the expiration of the 100 year term, the Hak Milik owner and Hak Pakai holder at that time are free to negotiate further extensions to the term of the Hak Pakai.

The Hak Pakai title is freely transferable between foreigners on condition that the foreigners actually appear in Indonesia before a Notary with valid entry permits. Standard Notarial fees and Government transfer taxes apply to transfer and extensions of the Hak Pakai title.