Property Law

May 4, 2022May 5, 2022

All You Need To Know About Indonesian Law Regarding Bali Property Ownership

It is the dream of many Australians to live in Bali or to go a step further and run a business there too, such as renting out Bali villas to tourists. Whilst both of these ambitions are possible, they are also both subject to Indonesian laws regarding property and business ownership. To this end, if you are thinking about living or running a business in Bali, seeking local legal expertise is a must.

Much of that advice will understandably focus on Indonesian property laws as that is the laws that would be in play if you were considering property ownership in Bali. Let us highlight one huge and obvious hurdle and that is that as it stands, Indonesian law prevents foreigners from owning the freehold on property in Bali. As such, when you see or hear discussions about ‘owning’ Bali villas, there will be several caveats to that.

So, owning the freehold if you are not an Indonesian citizen is not possible under current laws, and so the question is, “What can you do?”. One option some entrepreneurs try is to use a nominee. A nominee is an Indonesian citizen into whose name the title for the freehold of the property is given. This is a highly risky procedure and there have been some investors who have seen that investment disappear either through nefarious activity by the nominee or a legal wrangle.

Why Does Your Business Need A Clear Evacuation Plan?

When it comes to running their business, small business owners usually have a lot on their plate. Along with juggling the day to day running of their business, managing their finances and keeping their clients happy, small business owners are also responsible for things like workplace safety and fire protection.

Unfortunately, things like fire protection can sometimes get pushed to the backburner. This can allow things to happen which otherwise wouldn’t. For example, your fire safety gear may become poorly maintained, or your staff members may not be aware of your evacuation plan. However, it is extremely important to have a clear evacuation plan which is understood by every member of your staff.

What Is An Emergency Evacuation Plan?

In simple terms, an emergency evacuation plan is a clear, well rehearsed plan of what you and your employees will do in the case of an emergency. It usually details the best escape routes, meeting places to head to and anything else of importance that could help you escape a dangerous situation safely. Emergency evacuation plans should be practiced regularly, and new staff should be briefed on them. They should be visibly present in every room in your building, within reason.

Why Do I Need A Clear Evacuation Plan?

Basically, a clear, well defined emergency evacuation plan will allow you and your employees to safely escape from your building in the case of an emergency like a fire. Some of the reasons you should always have an emergency evacuation plan include:

You are required by law under most Australian OHS legislation.
It will reduce confusion in the event of an emergency, reducing the risk of the emergency escalating and spiraling out of control – and avoid any legal issues following avoidable accidents.
It will allow you to get a situation under control by, for example, containing or extinguishing a fire before it becomes large enough to pose a serious threat.

When developing an evacuation plan, make sure that you consider the above.

The Difference Between a Fixture and a Chattel – and Why It Matters

If you are buying or selling a house you may hear something about fixtures and chattels. It’s important to have your property lawyers explain the difference in these terms since they are usually included in the terms of the agreement and the purchase/sale documents. If you don’t understand what they refer to, you could be disappointed once the removalists leave and you move into your new home to find out something is not there when you expected it to be.

Fixtures

Generally speaking, a fixture is something that is attached to the land or property. However, even though it may seem very obvious as to what is attached and what isn’t, there are some variations, just to keep you on your toes. In some cases, chattels can become fixtures and fixtures can become chattels. In one case of selling an old theatre, the question arose as to whether the seats were fixtures, since they were actually bolted to the floor and to each other. Oddly enough, a court decided they were not fixtures, but chattels, so they were not to be considered part of the theatre. This was in spite of the definition of a fixture being anything that is attached to the land through anything but its own weight.

Category: Property Law