In Reply to: Secure land title? posted by SurfAddict on Monday, 27. February 2006 at 16:50 Bali Time:
It seems from the details of tenure below that the way to get real title is to get the owner to surrender Hak Milik to get Hak Pakai.
Chances?
But if the owner is really fair dinkum about selling the land then they should be willing to do this and thus loose all title to the land.
Comments anyone?
Tenure
Hak Pakai can be granted over:
* state land
* rights of management (Hak Pengelolaan - "HPL")
* rights of ownership (Hak Pakai)
The status of Hak Pakai over State Land or HPL on the one hand, and over Hak Milik on the other, is very different, to the extent that they should for practical purposes be regarded as distinct titles.
The principal points of divergence are as follows;
It seems the best title you can get is if the owner of Hak Milik surrenders that right to the state so that
The first type is registrable in its own right, and will be the subject of a land certificate, whereas the second type will be protected only by a notice on the respective Hak Milik certificate.
Both types can be granted for up to 25 years. However the first type can also be made the subject of a prepaid extension for 20 years, and a prepaid renewal for 25 years, at the time of the initial grant, giving an effective duration of 70 years. This is not possible in the case of Hak Milik over Hak Milik. Hak Pakai over State Land or HPL can be mortgaged, but Hak Pakai over Hak Milik cannot.
Object of Ownership
RMA 7/96 allows each foreign individual to own, under Hak Pakai, "one residential or dwelling house" in the form of either a house on its own parcel of land, or a strata title unit in a condominium which itself stands on land held under Hak Pakai over State Land.
There are now obvious obstacles to developers selling landed properties to foreigners by surrendering the existing HGB or Hak Milik titles over the respective parcels to the Land Office, in exchange for a re grant of Hak Pakai. The only substantive way in which these titles would be inferior to HGB would be that the initial period of the title would be limited to 25 years, rather than 30, and that the effective period - i.e. inclusive of a prepaid extension with a prepaid renewal - would be 70 years rather than 80 years.