Required Property Disclosures in Indonesia

Before affixing initials or signing agreements, there is a set of written evidence regarding the original history of the land plot/building space that should be communicated by the landlord to avoid misinformation or future legal offenses.

Legal Disclaimer: This guide provides general legal information. Always seek a local legal professional for advice.

Proving Valid Ownership Rights (Land Certificates)

An inseparable element to prevent the danger of land/building brokers or shadow intermediaries, landlords with integrity must openly show copies or prove their power of rights:

• Certificate of Ownership (SHM)
• Or Building Use Right Certificate (HGB) for specific regional statuses or apartments (usually proven by a Certificate of Ownership over Multistory Housing Units / SHMSRS).
• Valid Power of Attorney: If an agency or property relative conducts the lease on behalf of the original SHM owner.

Building Form Permit

It is highly recommended to hand over the building verification to its initial function regarding the city government's building establishment licensing regulations. This is the PGB / IMB (Building Establishment Permit or Building Approval). Although not mandatory if the house is meant purely for a residential stopover, the IMB document absolutely needs to be prepared if the residential property asset is to be transformed into a commercial representation or embassy.

Outstanding Billing Balances (PBB, IPL, etc.)

Arrears in Land and Building Tax (PBB) and complex/electricity dues (IPL / IPLK) from the past duration must be declared upfront so that tenants do not subsequently bear the deficit from the years they were not utilizing it.

The landlord guarantees all utility bill membership issues must be fully settled or cleared right up to the "Electricity Meter number" that is running since the fresh tenant's hand moves in.