Identifying serious offers - what to pay attention to when purchasing land

[make_batik_great_again]

Street, drainage, utility, and other improvements of the neighborhood commons, I generally view as a good things. If your friend does not wish to be a participant in the community he is buying into and contribute to improvements that serve all the property owners, himself included, he should really think twice about the purchase. I certainly would not want him as a neighbor.

I might have drawn a wrong picture of him

I think he just wants to get an idea of the costs that could come up after the purchase. Since he does not plan to live there in the near future, he is not in a hurry to have the mentioned improvements done and did not calculate these expenses in the near future. He thought of having these costs later when he is sure when he will be able to build a small house there.

I think the road is also an uncertainty for him. As far as I understood from his tellings, there already is a bumpy road which is a jalan tanah and which serves his needs. But he is not sure if the neighbors would want to asphalt or refurbish it and if he would have to participate in the costs even if this improvement was unneccessary in his view.

 

[HappyMan]

We're back to talking about connections with pak RT, RW, Lurah again. That is who would be contacting your friend to ask for sumbangan for road maintenance or other costs. These would probably vary a lot by area. We always got asked for money for Hari Raya Indonesia at the village and one of the houses, but not the other two houses.
Pak lurah at the village actually asks for a lot more contributions for a lot more things than any of the other places. He always has an active project and then there's are routine jobs cleaning brush from the side of the road and such... These costs disappear almost completely when we are absent. Out of sight... out of pocket?

All of these costs have always been a pittance, relative to the costs of the properties. Then again, I do feel sorry for one of the uncles, who is perpetually absent from his land, but still gets requests for sumbangan, since everyone knows I can contact him.

*The village I keep mentioning is rural land, not a residence (though there is a saung).

 

[Pak Tani]

I think the road is also an uncertainty for him. As far as I understood from his tellings, there already is a bumpy road which is a jalan tanah and which serves his needs. But he is not sure if the neighbors would want to asphalt or refurbish it and if he would have to participate in the costs even if this improvement was unneccessary in his view.

See it as an investment. A house or a piece of land on a dirt road is deemed less valuable. By investing in a decent road the value of your property will go up, maybe even more than the cost of your investment.
Also, living on a dirt road might sound idyllic, the dust you will be facing on a daily basis during dry season, is not.
One more tax that exists hasn't been mentioned here, we found out last week. When you buy several plots of land at the same time in the same area, they will honor you with a 'pajak progressif' for the second plot and the rest. That's an extra 2,5%.

 

[waarmstrong]

I might have drawn a wrong picture of him ..... if he would have to participate in the costs even if this improvement was unnecessary in his view.

I think I got the correct impression.

 

[make_batik_great_again]

A friend of mine was in the process of buying land. Sporadik certificate already existed and the seller started the process of SHM after they agreed on a contract which was drawn up by a notary my friend chose.

But after SHM was issued, the land was bigger than stated in the sporadik certificate. Therefore, also the price for the land is higher now of course since they agreed on a price per square meter. When I heard that story, I wondered if this is common!? Is that because the land gets measured again when applying for SHM and the size of the land in a sporadik certificate is not always that accurate? Or could he have been victim of fraud?

I think BPN is responsible for the measurement of the land. Are they reliable? At least, I never heard that someone measured the land by himself in order to check if BPN did it correctly.

One more question regarding this situation: When does the buyer usually have to pay for the land? The SHM is already issued but there is still the name of the seller on it. The seller will start the process of changing the name on the certificate now. Down payment was already done at the beginning of the whole buying process. But does the buyer have to pay the rest of the amount now already since SHM is issued now? Or does he have to pay after the process of certificate´s renaming is done (so after the name of the buyer is already on the ceritficate)?

 

[waarmstrong]

Treat the final step in the purchase process similar to a hostage exchange -- SHM in the buyer's name for the final cash installment, simultaneously.