Convertible Lease AgreementOne way

Convertible Lease Agreement

One way for foreigners to go ahead an purchase property despite these legal ambiguities is to sign a Convertible Lease Agreement with the apartment property management office to purchase an apartment. Basically what this agreement entails is that the foreigner may purchase the apartment, but the title is still held in the name of the developer or property management firm, or an Indonesian friend. This lease agreement is for a definite period.

The Convertible Lease Agreement states that if and when the prevailing laws and regulations permit the Lessee to become legal owner of the apartment/strata title unit, both the Lessor and the Lessee shall be obligated to sign a Deed of Sale and Purchase and the title shall be transferred to the foreign owner.

If you are interested in purchasing an condominium through this type of agreement, investigate the property management company thoroughly. Many property developers are undergoing serious economic pressures and construction on many properties has been postponed or canceled. Show your contracts to a bona fide lawyer to ensure that all legal implications are covered thoroughly.

Note: When asked about the legality of Convertible Lease Agreements, lawyers we consulted stated very clearly that this is a VERY BAD idea and that lawyer should never advise that you to sign a Convertible Lease Agreement. As a foreigner you are entitled to Hak Pakai and you should insist that legal property status from the apartment building or developer so that the title is in your name. With a convertible lease agreement…you are totally at the mercy of the “appointed party” and that if they decide to change their minds you do not have much of a legal case against them as the agreement that the expat has between themselves and the Indonesian "appointed party" is not really a legal document.

It is best to just insist that the Hak Pakai is in your name. If the developer cannot provide a Hak Pakai document in your name, it may be because they do not have Hak Bangunan title. If this is the case, DO NOT BUY IT.

Hasil (Inggris) 1:

Convertible Lease AgreementOne way for foreigners to go ahead an purchase property despite these legal ambiguities is to sign a Lease Agreement with the Convertible apartment property management office to purchase an apartment. Basically what this agreement entails is that the foreigner may purchase the apartment, but the title is still held in the name of the developer or property management firm, or an Indonesian friend. This agreement is for a lease of the definite period.The Convertible Lease Agreement states that if and when the prevailing laws and regulations permit the Lessee to become the legal owner of the apartment/strata title units, both the Lessor and the Lessee shall be obligated to sign a Deed of Sale and Purchase and the title shall be transferred to the foreign owner.If you are interested in purchasing an condominium through this type of agreement, the property management company, investigate thoroughly. Many property developers are undergoing serious economic pressures and construction on many properties has been postponed or canceled. Show your contracts to a bona fide lawyer to ensure that all the legal implications are covered thoroughly.Note: When asked about the legality of Convertible Lease Agreements, lawyers we consulted stated very clearly that this is a VERY BAD idea and that lawyer should never advise that you to sign a Convertible Lease Agreement. As a foreigner you are entitled to Hak Pakai and you should insist that legal property status from the apartment building or developer so that the title is in your name. With a convertible lease agreement…you are totally at the mercy of the “appointed party” and that if they decide to change their minds you do not have much of a legal case against them as the agreement that the expat has between themselves and the Indonesian "appointed party" is not really a legal document.It is best to just insist that the Hak Pakai is in your name. If the developer cannot provide a Hak Pakai document in your name, it may be because they do not have Hak Bangunan title. If this is the case, DO NOT BUY IT.

Hasil (Inggris) 2:

Convertible Lease Agreement One way for foreigners to go ahead an purchase property despite legal Reviews These ambiguities is to sign a Convertible Lease Agreement with the apartment property management office to purchase an apartment. Basically what this agreement entails is that the foreigner may purchase the apartment, but the title is still held in the name of the developer or property management firm, or an Indonesian friend. This lease agreement is for a definite period. The Convertible Lease Agreement states that if and when the prevailing laws and regulations permit the lessee to Become legal owner of the apartment / strata title unit, both the lessor and the lessee shall be obligated to sign a Deed of Sale and Purchase and the title shall be transferred to the foreign owner. If you are interested in purchasing an condominium through this type of agreement, the property management company Investigate thoroughly. Many property developers are undergoing serious economic pressures and construction on many properties has been postponed or canceled. Show your contracts to a bona fide lawyer to Ensure that all the legal implications are covered thoroughly. Note: When asked about the legality of Convertible Lease Agreements, lawyers we consulted stated very Clearly that this is a VERY BAD idea and that lawyers should never advise that you to sign a Convertible Lease Agreement. As a foreigner you are entitled to right to use and you should insist that the legal status of property from the apartment building or developer so that the title is in your name. With a convertible lease agreement ... you are totally at the mercy of the "appointed party" and that if they Decide to change Reviews their minds you do not have much of a legal case against them as the agreement that the expat has between Themselves and the Indonesian "appointed party" is not really a legal document. It is best to just insist that the Right of Use is in your name. If the developer can not provide a right to use the document in your name, it may be Because they do not have title Building Rights. If this is the case, DO NOT BUY IT.