Tanjung Ocean View Questions & Answers
Everything you need to know about TOV (and more!)
A: There are a variety of land use and ownership regimes under Indonesian Law. Some of the most important are as follows:
1) Freehold Title (HM or Hak Milik, Article 20-27). Freehold title is the strongest and fullest title that can be obtained. Freehold (aka “Fee Simple”) title may only be held by Indonesian citizens or by Indonesian legal entities that are stipulated by the government. It is therefore impossible for a foreign individual to have direct freehold ownership of land in Indonesia. All Indonesian companies, whether or not they are a PMA (i.e. Foreign Investment Company), cannot possess freehold title over land and are compelled to use other titles such as Hak Guna Usaha and Hak Guna Bangunan. According to the UUPA, land that is titled Hak Milik can be used as security for debt. However, foreign companies and individuals must take care in accepting freehold land as security and should consult with competent advisors beforehand.
2) Land Cultivation Rights Title (HGU or Hak Guna Usaha, Article 28-34) The Land Cultivation Title (HGU) gives the right to use a state-owned land for the purpose of agriculture, in particular plantations, fishing or cattle-raising. Such title is granted for periods of 25 or 35 years, and may be extended for another 25 years if the land is deemed to be managed and utilized properly. This title of right is given to Indonesian citizens or legal entities (including PMA companies). A HGU title can be used as collateral, or with the approval of the government, transferred to a third party.
3) Building Rights Title (HGB or Hak Guna Bangunan, Article 35-40) A Building Rights Title (HGB) gives the right to construct and own buildings on a piece of land that someone else owns. Such title is granted for a maximum period of 30 years, which can be extended for another 20 years. HGB title is granted to Indonesian citizens or legal entities (including PMA companies), and can also be used as collateral or transferred to a third party. Note: HGB can reactively easily be converted into Freehold (Hak Milik) Land and such land creates a valuable strategy for PMA’s (Foreign Investment Companies) to acquire land under HGB – in the name of the PMA (i.e. without needing a nominee) and later, upon sale, convert the property back to Hak Milik (Freehold). See below for more discussion of this strategy.
4) Right Of Use Title (HP or Hak Pakai, Article 41-43) The Right of Use on Land (HP) is the right to use land for any purpose for a period of 25 years, which can be extended for another 20 years. This type of title should not be confused with a lease contract or sharecropping agreement. Foreign residents of Indonesia and Indonesian legal entities (including PMA companies) may hold HP titles. HP title has no collateral value to the owners and is not transferable.
Q: How does one acquire freehold (aka “fee simple”) ownership at TOV if the buyer is not Indonesian?
A: TOV offers “nominee” services for a small fee additional fee. We use a trusted employee to secure owner’s interests with a complete “nominee package” which includes a mortgage in favor of the lot owner for the full purchase price paid and a number of other documents which together secure owner’s use of and title to the land. This is common practice in Indonesia where the vast majority or foreign owner’s acquire their freehold/fee simple land through the use of nominees.
A: Yes. Again, foreigners are not allowed to own Fee Simple/Freehold rights to Indonesian property (see “Hak Milik” above). However there are a couple of ways foreign owners get around this:
1) Create a Foreign Investment Company (called a “PMA” – the Indonesian acronym for “Penanaman Modal Asing”), then, after establishing the PMA company, transfer the property into the name of the company (or set up the PMA first, then acquire the property in the name of the PMA).
Since foreigners are not allowed to own freehold property, the same restriction applies to PMAs. However, control (and effectively, title) to a property can be secured by the PMA by first changing the property ownership right/title from “Hak Milik” to “HGB” (see above for more on Hak Milik and Hak Guna Bangunana). HGB can relatively easily be later converted back to Hak Milik in the event the property is sold to an Indonesian or the foreign owner gets Indonesian Citizenship.
However, for a foreigner who does not intend to actively do business in Indonesia (as opposed to simply owning 1 or 2 properties in Indonesia), this is a cumbersome and expensive process, with much reporting, government regulation and paperwork involved – in addition to the considerable time and cost of creating a PMA (which, is a form of Limited Liability Company or “LLC”). The cost to create a PMA is typically $6,000 US to $10,000, depending on who creates it.
2) Use a Nominee. The vast majority of foreign investors and/or property owners (including the Developer) designate a “nominee” as the legal owner of their property. Nominees can be any Indonesian citizen – including a foreigner who has become an Indonesian citizen. In order to secure the true owner’s control of the property, a set of documents (the “Nominee Package”) was long ago developed and has been used for decades by foreign investor/owners to secure their freehold ownership interests in Indonesian properties.
Chief among these documents (typically consisting of 6 or 7 different notarized legal agreements), is a mortgage given by the nominee to the owner and secured by the property, typically for the amount of the foreign buyer’s purchase price/investment. In Indonesia, mortgages are recorded as legal security interests (i.e. a lien) which attach to the title of the property and are “lodged” at BPN – the Indonesian government land office which issues the certificate (i.e. the title or deed) to the property. Properties subject to recorded mortgages must have the mortgage satisfied/paid-off before BPN will issue a new certificate in the name of a subsequent buyer/owner or allow any transfer of ownership.
As additional security, possession of the original certificate (in the name of the buyer’s nominee) is held by the foreigner as it and other documents must be first be submitted to BPN by the nominee in order to sell or transfer ownership of the property.
Finally, other documents in the Nominee Package (notarized and created by the notary handling the Buyer’s purchase) clearly detail the complete and binding relationship between the nominee and the foreign owner – including limitations against the nominee’s rental, conveyance, mortgaging or other use of the property held in trust by the nominee for the foreign owner, powers of attorney from the nominee to the non-Indonesian owner, granting the exclusive power of sale to the true owner and more.
A: Throughout Indonesia, property purchases, transfers of ownership, land title certifications and other real estate related matters are handled by the “BPN” (“Badan Pertanahan Nasional” – otherwise known as the Indonesia National Land Agency). Some BPN offices are better staffed than others and the workloads of each office can vary significantly.
Location & Access
A: Tanjung Ocean View is located in Indonesia, on the Island of Lombok, a few minutes from the town of Kuta, above the white sand beaches of Tanjung A’an (A’an Bay) on Lombok’s famed South Coast.
A: The Island of Lombok is the next island directly to the east of Bali, Indonesia.
A: Lombok is about 22 miles (35 kilometers) from Bali.
A: The Island of Lombok is the next island directly to the east of Bali, Indonesia.
A: The town of Kuta is about 2 miles from the TOV project and it takes less than five minutes to drive into town from the project on the new highway.
A: The nearest city is Mataram which is the largest city on the Island of Lombok. Transit time from Kuta to Mataram is now only 45 minutes using the new four-lane divided highway, recently constructed for fast access to Mataram from the new BIL Airport in Praya.
A: TOV is about five minutes from Tanjung A’an Bay, a gorgeous beach with twin crescents of white sand and crystal-clear blue water. When the Mandalika Bay development’s main access road (now being installed – immediately below the TOV project) is completed, direct access to Tanjung A’am Bay will be even faster.
A: The new BIL Airport (now with direct flights to Lombok from many international locations!) is approximately 20 minutes by car from TOV using the newly paved and widened highway.
A: It takes about 25 minutes by plane, about 1 hour by fast ferry and roughly 5 hours by large ferry.
A: Yes. Every day Lombok hosts tourists with cars, locals with motorbikes and commercial vehicles hauling goods, travelling between the islands by ferry.
Property Management & Services
A: The Owner’s Association will manage TOV, (see below).
A: Yes. Before the TOV project is fully sold, the Developer intends to build an Onsite Management Office on Lot 3, the parcel closest to the main entrance to the project.
A: Yes. The Management Office’s security staff will provide security services to the project.
A: In addition to providing project security services for the TOV development, the Developer intends to offer the following additional services, on a fee basis, to any TOV owner who desires to use such services:
• Property Rental Services. For owners who build houses at TOV and wish to generate vacation rental income from the rental and rental management of their house.
• Property Maintenance & Repair Services. For owners who have a lot or house at TOV and wish to have their property maintained by the Management Office.
• Individual Security Services. For owners who wish additional security (at/for their particular property, as opposed to for the entire project).
• Housekeeping, Cooking & Cleaning Services. For owners who want their houses cleaned on a regular basis and/or desire meal preparation services.
• Real Estate Brokerage Services. For owners who wish to buy or sell property at TOV or elsewhere.
The Lots At TOV
A: Yes. All the land has been fully certificated and new certificates are issued by BPN to all Buyers as part of the TOV sale process.
A: Yes. All lots have been surveyed and a contour map with elevations has been created for each lot and for the entire project. A new survey is performed by BPN when each lot is sold – prior to the issuance of a new certificate in the Buyer’s name as part of the TOV sale process.
A: Most of the lots at TOV have spectacular white-water ocean views. Lots in Phase 1 at the bottom of the project, nearest to the main entrance (Lots 1 to 8 and Lots 21 to 24) have valley and mountain views, with little or no ocean view. There are several lots in Phases 2 and 3 which also have little or no ocean view.
A: Currently lots are being offered for sale which are about 5.61 Ares (561 square meters) to 45.02 Ares (4,502 square meters) in size.
A: Yes. Aside from the minimum lot size (again, 10 Ares), the only other restriction is that no lot can be subdivided until the Developer has sold all of the developer’s lots.
A: Yes. However, the minimum lot size for a subdivided lot in TOV is 10 Ares (i.e. 1,000 sq mtrs). Thus, only lots 20 Ares or larger can be subdivided – into 2 new lots; 30 are lots are allowed to be subdivided into 3 new lots, etc.
A: Good question (and one we get asked a lot). The reasons are simple: a low acquisition cost, a fast development time-line, and the Developer’s investment strategy (see below) together result in the below market prices at TOV. In fact, more than one savvy buyer at TOV has confided in us (after their purchase!) that our prices are too low. See the “Prices & Availability” page for a table of current Tanjung Ocean View lot prices.
Project Infrastructure, Utilities & Improvements
A: Yes. Concrete lined drainage canals and bridges over the drainage, where needed, are provided by the Developer at no cost to owners.
A: Yes. The interior subdivision roads have been graded and the sections not under active construction have been paved. Most drainage canals have been complete, and drainages channels in areas of active construction have been excavated to control runoff from rainfall. Bridges have been installed. Lining of the drainage canals (with rock and concrete) and asphalt paving of the roads in some areas are now in progress – all with a scheduled completion date of no later than December of 2015 – all at Developer’s cost.
A: Yes. A new widened and paved main government road has recently been constructed from the Kuta Bypass Road in Kuta past the TOV project and running all the way to the new Awang Harbor. Finishing work (adding extra soil to road shoulders, completing the drainage channels in the few remaining areas, planting trees) was completed in 2013.
A: In order to secure and maintain continuing access to all lots at TOV, the Developer will maintain ownership of the interior roads at the present time. After the Turnover Date, the Developer may convey the interior roads to the local government or maintain them as private roads, either in the Developers name or in the name of the Tanjung Ocean View Homeowner’s association.
A: Yes. The interior roads at TOV will be maintained by the Owner’s Association (see “Owner’s Association” below).
A: Yes. Water systems in the majority of homes in the Kuta area are private and developed from wells dug at each house. Studies indicate there is a large aquifer of water at depths and volumes high enough to easily service the entire project.
Q: Is electricity available at the project? A: Yes. Electricity is available to the project from the main government road at the front of TOV. If desired, each owner is independently responsible for bringing electric service to their lot.
A: Yes. (See above).
A: There are a number of relatively inexpensive well drillers in the area who we can refer you to.
A: No. As of this date, telephone service is cellular (as is true of much of Lombok and most of Indonesia). Lombok generally has excellent cellular reception, with numerous cell towers installed as almost all residents own and use cell phones. Telephone lines will likely be installed by Telkom at a future date.
Covenants Conditions & Restrictions (“CC&Rs”)
A: CC&Rs are “Covenants, Conditions and Restrictions” imposed by a developer in order to clarify the “rules” of ownership at a development project.
A: Good CC&Rs protect the value of owners’ investments in a project by prohibiting nuisances, noxious conditions and other activities that are likely to cause problems and/or a loss of value to the owners’ investments in a real estate project. The best CC&Rs are those that skillfully address the potential issues that are likely to arise at a project, while at the same time allow maximum freedom of choice for owners, with rules that are not overly restrictive or burdensome. Good CC&Rs safeguard owner investments. For example, most owners in a nice residential development project, especially westerners, would not appreciate their neighbor turning their property into a rubbish dumpsite, a pig or chicken farm full of flies and noxious smells/noises, or a commercial enterprise that has hundreds of customers coming and going each day, not to mention destroying the interior roads with heavy trucks or traffic, etc.
A: Yes, here they are:
•Residential Use. All Lots in TOV shall be used for residential purposes only, inclusive of a garage, fencing and such other Improvements as are necessary or customarily incident to residential use.
•Maximum Number Of Living Units. No more than two (2) Living Units may be constructed on any Lot or any Subdivided Lot.
•Building Height. No Improvement greater than nine (9) meters in height may be constructed on any Lot.
•Building Setbacks. No Improvement shall be built or located within the setback area of any lot. Lots have different minimum setbacks, depending upon size of lot, location, view plane protection, etc.
•Building Design Review. Design review is required prior to building in order to insure that view corridors are protected to the greatest extent reasonably practicable and to assure compliance with all provisions of the CC&Rs.
•Ocean and Valley View Planes Protection. All Lots shall be developed in such a fashion as to preserve the ocean and other view planes of all nearby, adjacent and other TOV properties’ views.
•Temporary Structures. No tent, shack or other temporary building, improvement or structure shall be placed upon the Property without the prior written approval of the Developer, except during the course of active construction.
•Completion of Construction. All construction shall be completed within 12 months from the date of commencement.
•Subdividing. No Lot shall be further divided or subdivided into a Subdivided Lot containing less than one thousand (1,000) square meters (10 ares), nor shall any Subdivided Lot of any size be created or offered for sale until after the “Turnover Date” (see the compete CC&Rs document for definition of the Turnover Date which, essentially, is the date that the Developer has sold all the lots offered for sale).
•Signs. No signs of any kind shall be displayed to the public view on the Property except for signs which are part of Developer’s overall marketing plan for the Property.
•Rubbish and Debris. No rubbish or debris shall be placed or permitted to accumulate upon any Property and no odors shall be permitted to arise therefrom so as to render the Property or any portion thereof unsanitary, unsightly, offensive or detrimental to any other Property, it’s value, or to its occupants.
•Noise. No noise or other nuisance shall be permitted to exist or operate upon any portion of the Property so as to be offensive or detrimental to any other portion of the Property or occupants and owners at TOV.
•Lighting. No exterior lighting of any sort shall be installed or maintained on a Lot where the light source is offensive or a nuisance to any neighboring property, except for reasonable security or landscape lighting that has the approval of the Owner’s Association or as otherwise permitted.
•Nuisances. No noxious or offensive activity or work shall be conducted upon any Lot so as to impair the structural soundness or integrity of any structures, lands or improvements at TOV or the quiet enjoyment of any other Lot.
•Maintenance & Repair of Improvements. All improvements upon the Property, including any Lot, shall at all times be kept in good condition and repair and adequately painted or otherwise maintained by the Owner thereof.
•Tanks. No tanks for storage of fuel, oil, gas or other environmentally unsafe materials shall be allowed and no elevated tanks of any kind shall be erected, placed or permitted on any Lot.
•Drainage. There shall be no interference with the established Drainage Canals or drainage patterns over any part of the TOV development.
•Hazardous Activities. No activities shall be conducted on the Property and no improvements shall be constructed on the Property that are, or might be, unsafe or hazardous to any person or Property at TOV.
•Storage of Heavy and Large Machinery, Equipment or Building and Other Materials. Except during the course of active construction, no heavy or large machinery or equipment of any kind, nor any construction or other such materials shall be placed, operated, maintained or stored upon any Lot unless such equipment or material is stored in such as fashion as to be screened from view by others on any roadway or other Lot in TOV.
•Unsightly Articles and Vehicles. No trailer, recreational vehicle, tent, boat, or stripped down wrecked, junked, or wholly inoperable vehicle shall be kept, parked, stored, or maintained on any portion of the driveway or front yard, or in front of the building line of any permanent structure, and such items shall be kept, parked, stored or maintained on other portions of a Lot only within an enclosed structure or a screened area which prevents the view thereof from adjacent Lots and roads.
•Parking. No mobile homes, commercial vehicles, truck larger than a small non-commercial pickup truck or semi-trailers, shall be parked, placed, or erected on any Lot at any time except for loading and unloading purposes.
•Animals and Household Pets. No animals, including pigs, hogs, donkeys, swine, poultry, wild animals, horses, cattle, sheep, goats or any other type of animal not considered to be a domestic household pet shall be housed or maintained on any Owner’s Lot. No animal may be stabled, maintained, kept, cared for or boarded for hire or remuneration on the Property and no kennels or breeding operation shall be allowed.
•Maintenance of Existing Trees. All Lot Owners shall make every reasonable effort to maintain the existing trees at TOV and shall use their reasonable best efforts to design and site improvements so as to allow existing trees to remain on all Lots.
•Electric Facilities. All Lot Owners understand and agree that it is the responsibility of each Owner to manage and pay for the cost of installing electricity to and within any lot owned by Owner.
•Maintenance of Vacant Lots. All Lots shall be maintained in good appearance and free of rubbish and debris.
•No Trade or Business Profession. No trade, business, profession, or any other type of commercial activity shall be permitted on or upon any Lot that requires or results in any increased vehicular traffic within TOV other than by residents, or which involves persons coming to the Property in groups, or on more than an occasional basis, or that might result in any noticeable sound, smell or level of activity which is in any manner objectionable to other Owners.
•Term of CC&Rs. The CC&Rs shall run with and bind the land until ten (10) years past the date of the first sale of Property in TOV, unless amended as provided. After such time, these CC&Rs, including all such covenants, conditions, and restrictions shall be automatically extended for successive period of ten (10) years each, unless amended by a written instrument executed by the Owners of at least three-fourths (3/4) of the Lots within the TOV development which are then subject to these CC&Rs.
A: The Developer created the TOV CC&Rs by adapting an existing basic set of covenants created by the Developer and his attorneys over several decades and used in numerous other development projects.
Tanjung Ocean View Owner’s Association (“TOVOA”)
A: Yes, the TOV project will be governed by the Owners through the TOV Owner’s Association.
A: The Association shall have the power to do and perform any and all acts which may be necessary, or proper for, or incidental to the exercise of any of the express powers granted to it or otherwise needed to enforce these CC&Rs.
A: Yes. Owners shall have 1 vote for each Lot they own at TOV.
A: Each Owner of a lot at TOV shall automatically become a Member of the Owner’s Association. Together, Owners will elect a Board of Directors (“BOD”) to oversee the management of TOV.
A: Until the “Turnover Date”, the Developer may appoint the Board of Directors and shall appoint such number of Directors and persons as the Developer believes may be needed to manage the affairs of the Board. After the Turnover Date, the BOD shall consist of 3 persons, whom the Association shall elect by popular vote, with the nominated individual Owners receiving the three highest vote counts being deemed elected to the BOD.
Costs Of Ownership & Assessments
A: Yes, as follows:
Levies and Liens. The Association, through the BOD, may levy Assessments against each Lot whether or not improved.
Maintenance Fund. The Board shall establish a maintenance fund into which shall be deposited all monies paid to the Association. The funds of the Association must be used solely for purposes authorized by the CC&Rs.
Annual Assessments. All owners in the Tanjung Ocean View development are required to members of the TOV Owner’s Association and to pay annual Owner’s Association dues. Prior to the beginning of each fiscal year, the Board shall estimate the expenses to be incurred by the Association during such year in performing its functions under these CC&Rs. Assessments sufficient to pay such estimated expenses shall then be levied against Owners. The current rate for TOV Dues is Rp 3,875,000 per year, prepaid January 1 of each year for that calendar year.
Special Assessments. In addition to the Annual Assessments provided for above, the Board might levy Special Assessments.
Investing In The Tanjung Ocean View Project
A: The basic terms of purchase are as follows:
•Securing the Right to Purchase a Particular Lot. Lots are held on a buyer’s account after (and only after) a buyer has signed a TOV Purchase and Sale Agreement (“PSA”) and paid the Initial Deposit. Lots will not be reserved unless and until BOTH the signed PSA and the required Initial Deposit is received
• Prospective buyers with “plans to purchase” are urged to move quickly as the project is being shown regularly to other buyers and the future availability of any specific Lot cannot be insured. Interested parties can only be apprised of the specific inventory available at the time and on the day an inquiry is made.
◦25% – Initial Deposit (refundable to buyer until end of the Due Diligence period).
◦60% – Additional Deposit (payable upon Buyer’s approval of Due Diligence).
◦15% – Final Payment (payable on issuance of new certificate to Buyer).
•Due Diligence Period. A “Due Diligence Period” of 21 days is provided for in the PSA, during which time buyers are free to make any and all inquiries they deem appropriate or necessary. During the DD Period, the Developer is bound to cooperate with all reasonable and practicable requests of Buyer to Developer to provide any information and documents requested by buyer and within the Developer’s possession. During the DD Period, buyer’s Initial Deposit remains fully and immediately refundable and the PSA remains cancellable without penalty, in every event, and without any cost to buyer.
A: The length of time required to finalize settlement (or “close”) a real estate transaction in Indonesia is quite variable depending on the property involved, the area one is purchasing in, and more importantly, the amount of “incentive” payments made to the BPN staff handling the transaction. Once as transaction is “lodged” at the BPN by a Notaris/PPAT (i.e. when all the required documents are submitted to BPN and a transaction file is officially created and logged in) it is technically possible to close the transaction in about 2 weeks. More likely, transactions will take anywhere from 6 months to a year – and sometimes longer! Expediting BPN’s processing is primarily a function of both actively managing each step of the process and each step, and paying incentive “fees” to the BPN staff (and occasionally, the notaris) handling the transaction. At TOV, we use a single certificate processor for all TOV transactions and a third-party Closing Manager who is paid to specifically manage and expedite the certification and closing of each TOV land sale. Our team averages roughly 6 months’ time from lodging of the Documents at BPN to final certification. However, buyers should understand that issues sometimes arise with these transactions which can significantly delay closings.
A: The process for investing in the TOV Project is as follows:
1.Find out which lots are currently available for purchase. (Note: the inventory of lots at TOV is declining rapidly as the project is selling quickly. While we do our best to update the website and keep the list of available lots current, you must check with us to confirm that the lot you want is still available).
2.After you determine which lot you want and advise us you wish to proceed with your investment, we will create a Purchase and Sale Agreement (“PSA”) for your purchase and email it to you for your review, along with the complete Covenants Conditions and Restrictions (“CC&Rs”). After review of these documents, you will need to sign and return them to use by email, along with the required “Initial Deposit” in the amount of 25% of the price of the Property.
3.After, and only after, you return to us the signed PSA and CC&Rs, together with the 25% Initial Deposit, we will take the property off the market for your 21 Day DD Period. During the DD Period you are free to investigate any and all matters relating to the TOV Project, the lot you intend to purchase or any other matter you feel you need to investigate or understand more fully before proceeding with the purchase. You are welcome to hire a lawyer, legal or other counsel to assist you – at your cost, as long as you complete your DD Investigation within the required 21 day period following your signature on the PSA.
4.At any time before the end of the DD Period you are free to cancel the purchase by giving written notice to us that you do not want to proceed with the purchase. If we receive your cancellation notice before the end of the DD Period, the contract will be cancelled and your Initial Deposit will immediately be refunded to you in full.
5.If no cancellation notice is received by the end of the DD Period, and you want to move forward with your investment, you are required to make an “Additional Payment” in the amount of 65% of the purchase price of the property. Upon receipt of your Additional Deposit, we will give notice to the notaris (notary) handling the transaction to prepare and begin processing the documents transferring title to you or your nominee, if a nominee is used. (If you are not an Indonesian Citizen, please see the Q & A section above, titled “Q: Can you give a little more detail about ownership options for non-Indonesians?”).
6.The process of creating your new certificate of ownership for the property (equivalent to a deed or title) and of finalizing the settlement and conveyance of the Property to you will be handled by several people, including: our “Closing Manager” (see above the “Notaris” (notary) handling the transaction, various people at BPN, a BPN authorized surveyor, and others.
7.As the buyer, you will be responsible for paying the costs of settlement. See the Q & A section below titled “Q: What are the acquisition/purchase costs if I buy a lot at TOV?”.
8.When the new certificate in your (or your nominee’s) name is finalized, the Final Payment in the amount of 15% of the purchase price is payable, whereupon you will have paid 100% of the purchase price and the lot will be transferred to you.
A: The Developer has negotiated a discounted acquisition fee (aka “closing costs”) for all buyers at TOV. These costs currently total Rp 35,000,000 per lot (exclusive of the cost of any mortgage placed on the property) and cover all buyer purchase related fees and costs, including:
All notaris (notary) fees and charges, including: creation, review & signing of the Perikataan Jual Beli (Presale Agreement); creation, review, signing and lodging (submission) to BPN (Badan Pertanahan Nasional Republik Indonesia – the Indonesia National Land Agency) of the Akta Jual Beli (Indonesian Final Purchase and Sale Agreement) and all other conveyance and certification documentation and work.
All BPN Lodging, processing and certification fees to issue the new certificate (Indonesia’s equivalent to a deed) in the name of the buyer or buyer’s nominee.
Surveying of the property by a BPN authorized surveyor (BPN requires all land be surveyed each time a change of ownership occurs).
Complete “Nominee Document Package” for those buyers who are not Indonesian citizens and wish to use a nominee for their purchase.
Note: Some new/subdivided lots “straddle” 2 underlying/original certificates and a few lots may even consist of 3 original certificates. For those lots with more than a single underlying certificate, closing costs will be higher. Until the new/subdivided lots are resurveyed by BPN (as part of the purchase process for each lot) we do not know with certainty how many original certificates underlie any particular lot.
A: Yes. A limited number of the following 2 Developer Financing Plans are offered – to qualified buyers with proven financial resources and good credit:
1) 50% down payment, 1 year term, 10% quarterly, interest-only payments.
2) 40% down payment, 2 year term, 15% quarterly, interest-only payments.
NOTE: Title (i.e. the certificate issued in buyer’s name) is not transferred to buyer until full payment of the loan.
A: The majority of owners at TOV are either visiting guests and tourists or investors. Buyers have come from France, New Zealand, China, Sweden, Russia, Thailand, Australia, Singapore, America, Switzerland and numerous other European and Asian locations. Most plan to build vacation homes at TOV for their personal use when here. Others, who understand the excellent value and strong appreciation that TOV investors enjoy, have purchased lots at TOV as investments.
A:Yes. We have many architects and designers available to assist you. Two of these architects have projects currently underway at TOV. One of these two architects owns property in the development, is completely familiar with the project, and is available to help you with design and construction related matters. We can also refer you to builders who can assist with construction of your villa.
A: Quality, security, and superb value for owners; a high-end development with expensive luxury villas now under construction; an investment with excellent near-term upside profit potential for investors, in an area with a proven, robust, under-valued market of rapidly rising prices.
Q: Yes! Here are six good reasons:
1.Massive Capital Improvements in Lombok. Touted as “The Next Bali”, Lombok has recently seen massive investments of capital by the Indonesian government which has vowed to turn the Kuta area into Indonesia’s premier tourism destination. The new Lombok International Airport (BIL), now allows direct flights from Australia, Europe and other Asia locations – without needing to transit first to Bali or Jakarta. Construction of new roads, the nearby Awang Harbor, a new electricity generation plant and other infrastructure improvements are recently completed and/or now under way.
2.Mandalika Resorts Mega Development Slated For Kuta. The Bali Tourism Development Co. (“BTDC”) has earmarked 1,249 hectares of mostly ocean front land in Kuta for the construction of the new Mandalika Resorts Development project. The project’s design includes several hotels, golf-courses, condo and villa developments, and a new harbor to be constructed at Tanjung A’an Beach as the focal point of the project. The TOV Development sits on the immediate boundary of the 1,249 hectare BTDC project, with unblockable panoramic views of Tanjung A’an Bay and stunning views from Gerupuk Bay to Kuta Bay.
3.Low Price-Points. TOV is priced well below the competition. Prices at Tanjung Ocean View are significantly lower than in Bali (and at other projects in the Kuta area), and enjoy the accelerating price increases of the area, driven by new tourism and development.
4.Pristine, Unspoiled Environment. Unlike Bali, the Kuta area is free of overtaxed infrastructure, heavy traffic, congestion, over-development, and the “big city” environmental pollution prevalent in many other parts of Asia.
5.The Best Beaches (and Surfing) In Indonesia. The Kuta area has long been a surfer’s paradise, with many returning year after year to enjoy the fabulous waves. In addition, South Lombok is peppered with gorgeous white-sand beaches which are some of the finest in all Indonesia.
6.Experienced, English-Speaking Western Developer. Investing in a foreign country, with no licensed real estate agents, no title or escrow companies, no reliable due-diligence or pre-purchase investigations, complicated ownership and acquisition procedures and little local experience, is a daunting and often risky endeavor. At TOV you enjoy the security and peace of mind which comes from working with an experienced, English-speaking local developer with a 40 year track-record of integrity and excellence.
More About The Developer
A: The developer of TOV is Lee Pappernow, an American real estate broker and developer. Mr. Pappernow has over 35 years experience in real estate brokerage, sales, development and construction. He has been involved in numerous other property development and sales projects in both Indonesia and other locations around the world.
A: Mr. Pappernow began his full-time real estate career in the 1970’s in the San Francisco Bay Area of California, in the USA. For many years he owned and operated, as Broker-In-Charge, the real estate offices of West Isle Properties, Ltd. and the Big Island Property Group – both in Hawaii. He has employed, trained and managed over 120 real estate sales agents in his Hawaii brokerages while actively working on numerous real estate development projects. The last project Mr. Pappernow worked on in Hawaii was the 13,797 acre Waikoloa Mauka development located on the Gold Coast of the Big Island of Hawaii, which he brokered, then assisted in the design, planning, logistics and marketing of the numerous projects and properties comprising this huge development. Mr. Pappernow has consistently been one of the top producing Real Estate Brokers in Hawaii, typically placing in the top 1% of the roughly 7,000 other licensed real estate salespeople operating in the State Of Hawaii. As the developer of the Tanjung Ocean View Project, Mr. Pappernow brings decades of experience and a wealth of knowledge learned first-hand as a developer and broker on thousands of properties and numerous projects around world.
A: TOV’s developer has been involved in many other projects. His acquisition, pricing and sales strategy for his Kuta area developments is both unique and simple: buy easily developable ocean view properties which have good access and are both above and on the immediate periphery of the coming 1,249 hectare Mandalika Resorts Development; negotiate below market acquisition prices; develop and sell the projects to Western (not local) standards; conduct business according to the highest principles, practices and standards of the USA (i.e. full transparency in all business dealings, the highest level of moral and ethical standards – all in keeping with the “Standards Of Practice” of America’s one million (1,000,000) member strong National Association of Realtors®; use trusted, proven sub-contractors for work on the projects; negotiate bulk discounts for labor, materials and sub-contract work (possible only as a result of doing multiple projects); and lastly, sell at below market prices to insure a great value proposition for buyers and the highest “velocity of money” (i.e. quick turn-arounds, of investments which thus net the developer higher yields at the lowest selling price-points)
Q: What are the advantages of buying directly from an experienced Western Developer vs. a local owner or property agent?
A: Buying property in foreign countries, especially in less modern locales like Indonesia, can be fraught with issues, primarily due to the woeful lack of experienced local developers and owners, completely untrained sales agents (none of whom are even required to be licensed in Indonesia!) and a significant lack of many western style institutions and practices (e.g. title companies, real estate licensing organizations, government mandated laws regarding disclosure and ethical practices, “metes and bounds”, GPS coordination or other “modern” legal descriptions of Indonesia’s property and legal boundaries, etc.). This combination creates an often caustic, expensive and risky business for buyers, who typically neither speak Indonesian nor understand the myriad, complicated, and sometimes whacky real estate laws and practices of Indonesia. An experienced Western Developer, with many years of experience in Indonesia developments, especially one with many years of western training, and the know-how and the highest standards of practice from the USA, can shepherd buyers through the acquisition process without losses, risks or unnecessary expense.