Buying Property in Indonesia

It may not be very easy for a foreigner to own freehold land in Indonesia due to the law of the country. But there are ways in which you can buy property in this beautiful country. But before going into that aspect, you need to understand the various certified deeds of property ownership as per Indonesian law.

The various deeds are the ‘Hak Milik’, Hak Guna Usaha’, ‘Hak Pakai’, and ‘Hak Guna Bangunan’, which specify the rights of people to hold property as per law. But out of these four deeds, only the ‘Hak Pakai’ can be of use to the foreigner who intends to invest in Indonesia. According to this deed, the property can be in the name of an Indonesian citizen or a foreigner domiciled in Indonesia and right of ownership is valid for 25 years after which it can be extended.

The ‘Hak Pakai’ title deed can be done up by a PPAT licensed notaries who will help you to handle the various legal formalities regarding the purchase of property at the Government Land Office. The foreigner who is in possession of property through the ‘Hak Pakai’ deed can also mortgage it with any lending institution or bank too. Any application for extending the period of ownership beyond 25 years should be made with the Government land office just prior to the date of expiry for a small renewal fee.

Many foreigners also choose to buy property through Indonesian representatives under whose name it will be brought. After this, the foreign investor enters into loan agreement with the Indonesian representative in which it will be stated that the land was brought with money loaned by the foreigner and so the investor is given full and irrevocable power of attorney to make use of the land to their discretion. The deal culminates with the permanent right of use agreement that is given to the foreign buyer to occupy the land.

Indonesian law does not require any deposits and all that is necessary is to transact the deal at the Notary’s office where the land is situated. The registration process of the land may take a time period of six weeks.

Buying Property in Cameroon

Cameroon is surrounded by Nigeria, Chad, Guinea, Congo and the Central African Republic. It is often referred to as a miniature Africa because of its cultural and geological diversity. You will find a little of everything in there—mountains, beaches, deserts, broad savannas and beautiful rainforests.

Foreign ownership of property is legal in Cameroon but it is not without pitfalls. Care should be taken in buying property on the northern border, as border disputes with Nigeria are a long way from being settled. If you need to finance your purchase with a foreign bank it will be subject to certain controls and will usually require government approval. Public officials in Cameroon have been known to confiscate properties that don’t exactly conform to all legal requirements so it is highly advisable to engage a good attorney when you purchase.

It is best to work through a realtor, of course. They will know all the properties that suit your needs whether you want to live in an urban area, a beachfront house or a cottage on the outskirts of a large city. A realtor can also guide you through all the steps needed to set up payment of taxes and fees and, with your attorney, make sure that your purchase is protected by an ironclad contract.

Buying Property in Malaysia

Malaysia is considered to provide a perfect investment climate especially in the real estate sector and people seem to be making use of the various avenues that have been made available by the government. A booming tourist destination and a hub of international business, Malaysia is playing home to a growing number of expats who are increasingly investing in this country.

Although buying property in Malaysia is much easier than in many other nations, it goes without saying that as a non-resident, you need to be aware of certain rules and regulations while buying property in the country as well obtain a basic knowledge about the various necessary documentation and fees that are to be remitted.

Foreigners are subject to certain rules with regard to purchasing property. The minimum value of the property in question should not be lesser than MYR 250,000. Moreover, foreigners are allowed ownership of a maximum of two properties only. Anything extra requires special sanction from the Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department.

Before committing on a property, it is always advised to get a structural survey done because many residential properties are known to have structural problems that often go unnoticed initially. After the buyer is satisfied with the property, he can make an ‘offer’ to the vendor and if it is accepted, it can be followed by the purchase contract that has to be signed by both the buyer and the seller. The purchaser has to deposit 10% of the value of the property and has to forfeit that amount if he backs out from the deal. The same applies to the vendor too who has to pay an equal amount to the purchaser if he is unable to go ahead with the deal.

This purchase contract has a validity of three months during which the purchaser has to source out funds and check up the relevancy of the various related documents. The final step is the signing of the sale and purchase agreement during which the remaining amount has to be paid and the agreement is forwarded to the land registry with an application to get the title deeds transferred to the name of the new owner.

Purchasers should be aware of the various fees related to purchasing a property in Malaysia like the estate agent’s fee, stamp duty, lawyer’s fee, etc. Another law concerning foreign buyers is that they cannot sell the property within three years from the date of purchase.

Buying Property in England

There are no restrictions on foreigners buying property in England or the United Kingdom. That said, you will have to check visa requirements if you intend to live on the property for more time each year than a quick vacation.

About 2/3 of buyers in central London are foreigners; Britons only make up a little over 35% of property buyers in London. If you use US dollars you can get a property for about 40% less than last year, as England has been hit hard by the world-wide recession.  You have your choice of flats (apartments), townhouses, land, new developments and houses for sale.

There are three types of ownership in England. Freehold ownership means that the land is included in the price of the property and you own it. With a Leasehold contract you own the structure but lease the land that it sits upon for a certain period of time. Commonhold ownership is common when you buy a flat—you own certain parts of the building in common with the other tenants such as the common area, recreation rooms or the laundry room.

Of course there are fees associated with buying property in England. You’ll have survey and valuation fees, Stamp Duty Land tax, a land registry fee, attorney’s fees, mortgage and real estate agent fees.  Of course, there is also the VAT (Value Added Tax) which is a certain percentage of the purchase price.

A real estate agent can help you choose which type of property is best for your needs. He or she can steer you towards the areas of England that you prefer with the tax structure that you can afford. You should also retain an attorney, which is referred to as a “solicitor”.

England has something for everyone, from bustling cities to quiet, rural villages and farms and everything in between.

Buying Property in Canada

There are very few restrictions when it comes to non-residents buying property in Canada. If you live there less than 6 months a year you can still buy property, open a bank and generally perform day to day personal and business functions. If you plan to be in the country more than 6 months you’ll have to apply for immigrant status.

It’s advisable to use a realtor to help you find the right property for you.  Some Provinces limit the amount of property or land that a non-resident can purchase; realtors can steer you in the right direction according to your needs and the laws of the individual Province you want to buy property in.

Once you find the right property you will make an offer, which has to be in writing. This is another area where it’s invaluable to have a realtor. All the terms must be meticulously listed and any items you want left with the house or property must be listed as “chattels included”. Along with the offer you’ll have to post a deposit. Once you sign the offer it is legally binding and if you back out you will lose your deposit and may even be taken to court. Once your offer is accepted the deposit is put in the bank and applied to the purchase price.

You will have to pay a property transfer tax, about 0.5-2% of total value.  It is generally 1% of first $200,000 and 2% of anything over that.

Things are a bit different in Canada. Realtors are usually self-employed so commissions are negotiable. That can be quite an advantage to you and reduce your costs of buying. Non-residents can generally finance 65% of the purchase price and make a 35% down payment. You’ll be interviewed and your personal details verified; if you’re a good risk then chances are you will be financed. Approval takes about 2 days after application.

Since foreign banks can’t provide mortgages in Canada you’ll have to arrange the mortgage there. You’ll need an attorney or a notary public to prepare all the documents and take care of the registration at the Land Titles Office. It’s advisable to have both.

Buying Property in Thailand

Buying property in Thailand may not exactly the easiest thing in the world if you are a foreigner. Thai laws concerning ownership of property by non-residents are quite jingoistic in nature and involve a whole lot of procedures.

Considering the legal perspective, it is a fact that property in Thailand cannot be brought outright by a foreign national. There are two legal ways in which foreigners are allowed access to land or other property.

1. Become the major shareholder of a limited company and buy the property in the name of the company.
2. Avail of the 2×30 scheme where you sign an agreement with a domestic company or a Thai individual and lease out the property.

As a foreigner who is interested in buying property in Thailand, you need to understand that you cannot own more than 49% shares in a company. The rules in Thailand also deem it necessary to require a minimum of seven shareholders in a limited company. Therefore, the initial step towards buying a property in Thailand involves setting up a Thai limited company with six other Thai investors, following which you can get yourselves named as the executive director of the company through the procedure of voting. The final step towards securing your property comes when the six other investors sign an undated share transfer form transferring their shares to your name so that you become owner of the company. You can buy land or property in the name of the company.

But if the above mentioned way seems too cumbersome to you, or you are not able to source out 6 other Thai nationals who are willing to make a deal, you need to consider another option. Thai laws enable foreigners to lease out land for 30 years initially following which the lease can be further extended up to 30 years more. This option, though definitely much easier, involves more money in the form of taxes.

It is always a good idea to contact a reputed lawyer who can assist you with the several legal formalities involved in buying property in Thailand. This beautiful country in indeed a great place for investing your hard earned money and is sure to reap benefits if done properly.

Buying Property in Malta

Buying property is something that has to be done after much consideration and it pays to be even more cautious when you plan to buy property in another country other than you own. You need to be aware of the real estate laws and regulations of the other country so that you can avoid a lot of stress and conduct a smooth transaction.

There are certain restrictions which are imposed on foreigners wishing to buy property in Malta. One basic rule to be remembered is that a non-resident of Malta can buy a house for primary residential use of the person or as a place to stay while on a holiday. But they cannot buy any property which is commercial or industrial in nature.

Of course, it is possible for a foreign national to make a legal agreement with a Malta citizen and invest in a limited liability company, but not many foreigners avail of this due to the insurmountable hurdles that have to be crossed by way of government approvals and regulations.

There are certain major rules to be observed by foreigners while buying property in Malta. Firstly, the value of the property that is to be purchased should not be lesser than 50,000 MLT. The second requisite is that the funds for purchasing the property must be sourced from outside the country. The third rule that is to be followed by the foreign property owner is that the house should not be rented out to anybody else. The third rule has an interesting contradiction in that if the house has a swimming pool, the owner can lease it out to somebody else when they are not personally using the property.

The process of purchasing a property in Malta is quite simple and uncomplicated. Initially, after identifying the property to be brought, a preliminary contract with a validity of three months must be drawn up during which the buyer has to deposit about 10% of the value of the property.  After getting the relevant titles and other documents verified, both the buyer and seller then enter into the final contract during which the remaining amount must be paid after which the buyer will obtain possession of the property.

Most of the legal documents are drafted in English and it is moreover advised to get the help of a concerned lawyer who will be able to guide you aptly.

Buying Property in Switzerland

One of the most sought after countries in terms of buying property is Switzerland. With awesome scenic beauty and a rich economy, Switzerland is highly accessible by road, rail or air and is moreover a hot spot for tourists from all over the world. With a clean environment and most modern amenities, no wonder this part of the world is considered great in terms of investment.

It is not very easy for foreigners to acquire property in Switzerland since the real estate sector is regulated by the ‘Lex Koller’, which is the Federal law on the acquisition of real estate by persons abroad. By this law, land can be acquired by foreigners only through permits that are sanctioned by the specific Cantons, who in some cases also decide on the size of the property brought. Restrictions apply not just to foreign individuals, but companies too and the rule is that any company with more than 30% foreign ownership cannot purchase property in Switzerland.

Considering that you have crossed all these barriers and have acquired the required permits, the rest of the process in purchasing a property becomes comparatively easy. It is necessary to rope in the services of a lawyer in this regard to help you carry out the deal competently.

The initial process after identifying the property is to get an agreement of sale or the ‘Promesse de Vente’ drawn up by the Public Notary. Along with the agreement, it is mandatory to pay a deposit of about 10% of the value of the property. The most important part to keep in mind is that this is a conditional agreement and can be implemented only if permission is received by the ‘Commission fonciare’, a process which could take anywhere between eight weeks to three months.

If the property you are acquiring is newly constructed, it is possible to pay for it in stages. These stages are to be detailed in the purchase agreement and to be adhered to strictly. After this formality, the buyer signs the document in the presence of the Notary to complete the purchase.

The purchaser needs to pay a variety of fees ranging from the Real Estate transfer tax, the Registration fee to the Land Register authority, the Notary fee, as well as lawyers and agent’s fee. The registration process may take about 16 – 20 days to complete after which the property will be in your name.

Buying Property in USA

Investing on property in the USA has become a very rewarding business especially after the recent recession and more people are finding great opportunities in this regard.

USA employs certain minute restrictions on purchase of property by foreigners, especially at the federal level. Oklahoma, for instance, does not permit foreigners to buy land, but they can own condominiums. Similarly, being a large country with several states, the legal procedure for procuring property differs from place to place too.

Once you have identified the property through a real estate agent, you need to make an offer to the seller and after due negotiations, an agreement of sale can be drawn up which  will give in detail the purchasing price, various related terms pertaining to the purchase as well as the time frame within which the sale should be closed. It is also important that your attorney checks out the relevancy of the various documents of the property like the deed, survey, title insurance policy, mortgages if any on the property, tax receipts, utility bill details, permits, etc thoroughly.

You can sign the contract once you are satisfied with the terms and conditions of the sale and during that time, you will be required to deposit an amount equaling to 10% of the value of the property. The deposit will be held in an escrow account with the seller’s attorney till the deal is closed. The seller needs to counter sign the contract at this time.

Once, all the documents are in order and thoroughly verified and payment towards the property deposited in the escrow account, as well as the various taxes and fees required by law paid up, the sale is closed in the presence of all parties concerned. Another procedure adopted while buying property is the title insurance policy which can be obtained after closing the deal. The owner needs to secure a title report prior to obtaining the title insurance. The transfer of the title completes the registration process and the new owner can take over the newly acquired property.

Buying Property in China

China makes it very difficult to buy property, not because they don’t welcome foreigners but because of the constantly changing controls and regulations.

Foreigners that want to buy property in China must have a proper visa, not just a tourist visa. In most places you have to live in city on a residence permit (Z visa) for a year or more before the date of your purchase. You’ll have to submit a notarized work contract or permit or notarized proof of your status as a student.

Rules vary according to the city or the region. Foreigners can only own one residential property in Shanghai and Beijing and they have to actually live there. They must sign a letter of commitment that promises they won’t buy any other property. By contrast, buying property in Sanya or other location can be very confusing because their rules may be scarce. In fact, the regulations may be changed before you finalize your purchase!

These are good reasons why you should deal with an attorney as well as a real estate agent. Ideally, you can get a trusted Chinese friend to help you; real estate agents feel no obligation to advocate for you or help you get the best price.

Once you find a property you like you will make an offer.  If the seller agrees you will both sign a sales contract and with that documentation you can begin to look for financing. The larger Chinese banks will help you and so will international banks like Standard Chartered. Once you secure financing, you and the seller will go to the district property center to transfer the name on the deed.  At that point you own the property.

Once all papers are signed and delivered it’ll be 45-90 days before the process of buying is completed. Agents’ fees vary—in Shanghai they charge about 1% of the purchase price while those in Beijing charge 3%, the maximum allowed by law.

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