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.

That being said, the are many investors who use nominees successfully,  but any agreement must be created and overseen by a notary. This necessitates that you seek sound and watertight legal advice and proper legal representation to protect your interests.

A second way to ‘own’ a villa to rent it to tourists is to lease one from an Indonesian citizen who owns the property. In effect, the lease agreement gives you a long term ‘ownership’ of the property for periods over 25 years. The landlord owns the property title but to all intents and purposes, the villa is yours which would include being able to rent it out to tourists. You even have the legal right to sell the lease or pass it on to your heirs.

Although less risky than using a nominee, leasing property is not without risk, so again you must seek legal advice and a notary to draw up the lease agreement to protect your interests, and conversely those of the landlord leasing the property to you.

A third option that is noteworthy for those wishing to run a Bali villas business, is to have the property purchased in the name of a company. This is a company in Indonesia that is set up similarly to limited companies in Australia. However, this option allows foreigners to own a company wholly or partly in Indonesia.

The laws which preclude foreign individuals from owning properties in  Bali are not applicable when it come sot certain types of business, and thus your Indonesian registered company could be the vehicle by which you can purchase one or more villas for your holiday rental business.

One point we must mention is many entrepreneurs believe that can buy land and build a villa to rent it out to tourists. This is not the case, as this only allows residential builds, not business use properties. Also, multiple restrictions exist that limit what properties can be used for within designated zones.

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.

What Should My Emergency Evacuation Plan Include?

A decent small business emergency evacuation plan should include some or all of the following, as appropriate:

• Escape routes and exits to allow people to exit the building in the safest way possible.
• Evacuation gathering points that are a safe distance away for people to meet.
• Fire safety equipment information, including the location and type of fire safety gear in your building.
• Emergency contact information to report an emergency and to keep everyone informed and up to date.
• Emergency reporting process which will tell people how to notify others in the building of the emergency so that they can escape in time.

The above are just some of what should be included in a clear evacuation plan. Note that you may need to include a lot more information, depending on the size and type of business you run, and that you should always include a visual representation of your evacuation plan.

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.

Chattels

Chattels are usually goods that are not fixed to the land or property by anything other than their own weight. These are usually furniture and small appliances in a property and are the belongings of the owner. However, this does not include built-in furniture. A chattel can become a fixture if it has been affixed to the home and it cannot be removed without causing damage to the property. For instance, a built in wardrobe would be a fixture, but the wire mesh insert that was put in afterwards could well be a chattel, since it is not fixed in by anything but its own weight. That said, inserts made from timber and screwed or glued to the inside of the wardrobe would be fixtures.

Why it’s important

It is important to find out exactly what the seller has agreed to sell, especially in the case of agricultural property where there could be many additional extras like water tanks, chicken coops, outbuildings and removable yards. Since a water tank is usually only attached to the property by its own weight, would it be a chattel? The owners could decide it is if they wanted to take it with them to another property, so you have to be aware of these things and ensure they are included in the purchase agreement if you don’t want to find yourself short of drinking water when you move in.

Should a dispute arise about whether something is a fixture or a chattel, things to take into consideration are the surrounding facts of the case. The intention, object, purpose and degree of annexation of the chattel must be determined.