Rice Resort Bali- Legal Sales Brief

BANGKOK | PHUKET | SAMUI | HO CHI MINH CITY | BALI

PT Rice Villa Developments, an Indonesian limited liability company, is the developer and seller of the Rice project. Limcharoen Hughes & Glanville are not the developer or seller of the Rice project nor are they affiliates of PT Rice Villa

Developments and therefore have no legal responsibility for the performance of the developer and seller.

LEGAL SALES BRIEF

Rice is an exquisite villa development located in Tabanan, Bali. The development is designed to provide an exclusive lifestyle investment opportunity. The developer of Rice and their advisors have worked together diligently on their aim to produce a comprehensive and secure as is practicably possible legal pack for international buyers in Bali, Indonesia.

Acquiring a Property in Rice

In light of the legal environment of Indonesia, Rice offers buyers an indirect Freehold based

ownership investment. A buyer would enter into a set of agreements with the developer of

Rice being an Indonesian company with foreign investment capital set up by the founders of

the project (‘PT Rice Villa Developments’).

PT Rice Villa Developments will initially hold the entitlement over the project land (individual

villa plots and common areas) under a Right to Build (Hak Guna Bangunan or HGB) and a

buyer enters into the following sales contracts with PT Rice Villa Developments comprising

• Master Agreement including key management & rental terms for Rice project

• Agreement regarding the Villa Land Plot Acquisition; and

• Project Construction Management Agreement

These three contracts together form the Binding Sale and Purchase Agreement signed

between the developer and buyer which will comprehensively regulate the rights and

obligations of the parties in relation to the property acquisition process.




Villa Land Plot

Under the Binding Sale and Purchase Agreement PT Rice covenants to allow you to indirectly

own your villa land plot through the use of a local Indonesian nominee. This is required as

under current Indonesian laws, freehold title (Hak Milik) can only be held by Indonesian

citizens. Under the Agreement regarding the Villa Land Plot Acquisition, the local Indonesian

nominee, whom you may freely designate, or whom PT Rice Villa Developments can provide

for you, will receive the freehold title (Hak Milik) over the villa plot from PT Rice Villa

Developments and simultaneously you as buyer would enter into a set of contractual

arrangements with the Indonesian nominee allowing you to ultimately control the villa plot.

In addition to this, there will be a long-term lease agreement in place between the

Indonesian and the buyer. It is legitimate for foreigners to have a long-term lease interest

over land and properties in Indonesia. Payments in relation to the land plot would be made

into a notary trust account from where monies are released upon completion in accordance

with the sales contracts.

Villa Construction

Under the Binding Sale and Purchase Agreement PT Rice Villa Developments will procure

construction of your villa on your land plot pursuant to the agreed specifications.

Construction would be carried out through qualified local partners and payments for

construction would be made in accordance with construction progress unless agreed

otherwise with the developer. The villas will be delivered fully furnished and the developer

will also procure construction of common areas.

Master Agreement

The Master Agreement which will also form part of the Binding Sale and Purchase

Agreement links both, the land plot acquisition and villa construction and makes them

interdependent and inseparable parts of the acquisition. The Master Agreement will further

include the key management and rental terms & conditions which will apply when the

project is completed and management operations including a mandatory rental program

offered to owners are about to commence work. The management and rental program

operation will be conducted by a separate company to be designated by the developer, the

management fee will be fixed for an initial term of two years, and the domestic services fee

will be fixed for an initial term of one year, and both may be reviewed and adjusted

subsequently in accordance with audited financial performance and based on any increases

in operating costs, if applicable.




Reservation

The acquisition process starts with a reservation agreement you would sign with the

developer whereupon you will be provided with due diligence information regarding the

project land and copies of the sales contracts for your review as soon as possible. Following

the reservation and provision of the legal documentation you are expected to sign the

Binding Sale and Purchase Agreement with the developer within a given time frame.

Remitting Funds

In the course of your acquisition you will be required to remit funds to the developer who

will allocate the payments to the land plot acquisition and villa construction in accordance

with your agreements.

Completion

The villa land plot and villa will be transferred and handed over to the buyer upon

completion subject to receipt of the full purchase price. At that time buyers would also

enter into a management and rental program agreement with the developer or its

designated manager pursuant to the key management and rental program terms agreed

under the initial Master Agreement. The registration of land rights in Indonesia will require

the use of a public notary and will include government taxes and registration fees which will

be shared in accordance with the agreements.

Rice Resort Bali- Legal Sales Brief

Real Estate

Transcript of Rice Resort Bali- Legal Sales Brief