10.1 Put it in Writing?
To give you and the seller a higher level of safety and to avoid confusion in the future, a written purchase agreement with all the terms agreed upon is essential. You would never buy a piece of property or even a car without a written contract in your country right? The owner surely want to know when to expect payments for the land and it is also good to clarify the pre-purchase process and stating exactly what will happen if unforeseen problems arise. The most important items to include in the contract are:
- Total price
- Conditions of purchase
- Payment schedule
- Allowed number of days to perform due diligence
- Agreed way to resolve disputes
10.2 How do I Pay Money?
Previously all transactions took place exclusively in cash on Lombok. Checks, credit cards or traveler’s checks were not accepted. Typically you or your partner had to go to the bank and withdraw cash wired by you previously. Lately cash is still the dominant way of handing payments on Lombok, but direct bank to bank transfer is also used, in fact direct bank to bank transfer was used for our first land investment. No matter how you choose to pay money, an official legalised receipt with reference to the sporadic, certificate or purchase agreement must be signed by the recipient of money. The receipt gains more credibility when one or more witnesses witness it. The recipient and witnesses can sign by hand or by using their thumbprint. Make sure that the receipt includes the special stamp that legalises the receipt. The stamp can be purchased at the Post Office and is used for any important document. Part of the signature or thumbprint is written over the top of one of these special stamps. This makes the receipt or document impossible to forge on a copy machine. This is the highest form of security for any important document, especially receipts.
Please find an example receipt below with reference to the sporadic number since it was an investment in raw land. Please note that the full name and sporadic number has been hidden.
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