Are you looking to work legally as broker in Bali, Lombok and other places in Indonesia? Bali have seen the property market booming and lot of new actors entered the market as brokers or real estate agents. The demand of potential buyers for land, villas or any properties have attracted lot of agents to work independently without being a licensed real estate agent. This article describes how to become a real estate agent and the importance to check the license of all brokerage firm. The real estate industry in Bali and the rest of Indonesia has legal requirements if you want to work with or become an independent broker. Here is the guide if you want to sell property in Bali as a broker.
What is a real estate brokerage?
A broker, also known as a real estate trading intermediary company, is a type of business entity engaged in activities such as acting as an intermediary on property between buyers and sellers. Buyers and sellers are considered as the clients of the agent. The broker can also act as an intermediary for the rental of property and conducts research and evaluations for the clients. The real estate agents work independently as an individual or a legal entity such as a real estate agent company. The broker or real estate agents is authorized to advertise and offer marketing service for the property.
As we know, real estate brokers or agents consist of two types: those who work under the auspices of a brokerage firm and those who work freelance or independently. Becoming a real estate broker who is part of a company does have its own advantages. You will have access to adequate facilities to support your work, be able to use company resources, and perhaps even attract potential clients more quickly. However, both have pluses and minuses to do so.
For those looking to become a broker in Indonesia as a foreigner, understanding the nuances of the market and the legal requirements is crucial. Whether you choose to work under a brokerage firm or independently, becoming a broker in Indonesia as a foreigner offers unique opportunities and challenges that require careful consideration and planning.
What licenses do you need as a real estate brokerage company?
Here’s what you need to prepare before embarking on your real estate journey in Indonesia:
Getting your company in a form of limited liability company. The real estate agent business also facilitates both local and foreign investment portfolios (PT PMA).
Obtain the business license (NIB) through the Online Single Submission (oss.go.id) as a real estate agent company.
In addition, the operation of a real estate agent/brokerage necessitate the possession of additional types of licenses. Which is called SIU-P4.
SIU-P4/Brokerage Licensed real estate agents
SIU-P4 is an abbreviation for Real Estate Trading Brokerage Company Business License known as a brokerage license, which serves as a certificate or license allowing property brokers to work professionally.
This is in conformity with the Ministry of Trade of the Republic of Indonesia’s Regulation No.33/M-DAG/PER/8/2008 on Property Trade Intermediary Companies.
Every broker company must have a SIU-P4. The Director of Business Development and Company Registration of the Ministry of Trade, renews the license every five years.
As a result, SIU-P4 is a necessity for establishing a property agent and being regarded as qualified to serve as a property broker.
How to get a SIU-P4 or brokerage license?
Please keep in mind that traders who want to apply for SIU-P4 must meet the following requirements:
A Real estate brokerage company (PT PMA) needs to have a minimum of two certified experts.
These experts must demonstrate their expertise with a Property Trade Intermediary Competency Certificate and may not work for another real estate brokerage company (Article 5 of Minister of Trade Regulation 51/M-DAG/PER/7/2017).
First, register the company with the Indonesian Real Estate Broker Association (AREBI), which provides training for prospective real estate brokers.
Second, perform expert assessments at the Professional Certification Institute (LSP). After training at AREBI, the prospective Broker need to pass an exam. If it meets the requirements, the broker will obtain an expert certification.
Once the certification obtained along with the company’s legal documents and the AREBI certifies itself, the broker can get the license from the Ministry of trade.
What is the importance of the SIU-P4/Brokerage License in Bali?
SIU-P4 is an essential legal requirement for brokers and property agents in Indonesia.
Having a SIU-P4 demonstrates that the property agent is a legitimate business company that has met the government’s standards.
As a property agent with SIU-P4, you will have an easier time accessing housing developments and obtaining government approvals.
SIU-P4 provides legal protection for property brokers when conducting business. If there is a dispute or legal problem involving a property transaction, the presence of a SIU-P4 will provide as confirmation that the property agent is functioning legally, lowering the danger of major legal complications. SIU-P4 is an essential certificate for agents and brokers to operate legally.
For those looking to become a broker in Indonesia as a foreigner, understanding these licensing requirements is crucial. Ensuring compliance with local regulations will help you establish a reputable and legally compliant brokerage business in Indonesia.
Social media and advertising
Facebook, WhatsApp and other market places have seen recently a large number of real estate agent claiming themself as independent broker or brokerage firm. It is important to note that not all of them have the necessary license to operate. Some real estate agent have a team of foreigners or local working without the appropriate license. This is due to a lack of knowledge itself where individuals or company operate without knowing the regulation itself.
If you work independently or as a property agent, this license will authorize you to promote on social media without having to use a local person to cover your name as it happen most of the time. You will be able to advertise yourself as a broker selling properties.
Things to consider
A broker license is also here to bring trust and protect buyer. Professional broker can offer several services. The license is worth if you consider to operate in Indonesia and find a job as areal estate agent in Bali. If you aim to become a broker in Indonesia as a foreigner, obtaining the necessary licenses and understanding local regulations are crucial steps.
Contact ILA today to schedule a consultation and explore how we can help you navigate the exciting opportunities within the Indonesian real estate market.
