Assistance with a predicament in Jawa Timur

You didnt say which city you are residing at or where the properties involved.

I only know in Jakarta. So you need referrals from others.

I can suggest you look at both
A) real estate lawyer
B) advocate.
They deal and advises in different specialities.

On the above, I can suggest you look if possible at finding Indonesian Chinese who can advise you. They can assess and help you better.

The law as I know it currently, if the properties are in your name, you are allowed to offload/sell them within 1year or revert to Hak Pakai.
If the properties not in your name, it gets trickier to show proof of purchase.

It's an interesting situation. But it seems you have paid and built more than one property from your own funds. May I ask whose name the properties were purchased under? Your wife's or yours or her family members?

Bank foreclosure meaning there is a mortgage?

Do you have kids with your local wife?

Hi Mike,

I agree with both prior responses...unless you want to divulge a lot of personal information here on a public forum, the advice to seek out a good attorney is very sound.

The one thing you say that makes no sense to me at all is why would your wife's family want to block the sale of these properties in the face of bank foreclosure (where the risk is to lose it all)? 

Good luck!
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Do you have a contract for Power of Attorney over the properties? I guess not, so court may be your only option.  I have heard that the Court can be sympathetic in such issues because they realise that your wife and family did not ever have the money to buy the properties in the first place but its debatable because money once given cannot be taken back.  In my opinion it might be your only option. Adrian

I am surprised the Poster (OP) didn't reply to the thread over such a serious matter.

I am reminded on what AdrianEvetts highlighted, then i remembered something.
Even if the property is not in your name. You have still a right to it, by marriage.

First thing to determine is that:
- When you are married, do you report everything by the book and have such documentation on Indonesian authorities, Catatan Sipil Nikah.
- the date of marriage is before the date of the purchase of the property.
- the property is in your wife's name
- you are entitled to it, by marriage
- the property could construe as part foreign owned and mixed owned property under marriage. The law could be argued that current ownership might not be legal as freehold and must be sold.

Notes: It is still be best to ask advice from Property lawyer and advocate. And highlight these issues.

I understand a new law on foreign ownership of land was passed a few months ago allowing foreigners on a retirement visa to own up to 20 Are.  You could claim that under the old law (when the property was purchased) your wife or other Indonesia who's name the property was registered in was only your sponsor for the purchase at that time and you now wish to transfer it to your name.
Adrian

Adrian, I believe the changes you are referring to are the recent changes in the Hak Pakai lease which, while it can indeed be in the name of the foreigner (with certain domicile restrictions), it is still a lease, and not a freehold land ownership (Hak Milik) deed.  The duration maximum of these Hak Pakai leases is 50 years and they are transferable, including by inheritance.    These leases are available to anyone living in Indonesia under a KITAS (residency) and they are limited to just one per person.

As you're an Aussie expat in Surabaya, I'm sure that there must be some kind of paper trail to prove where the money came from. If you can show evidence of transfers of funds from an Austrailian bank account that roughly corresponds to the purchases, construction supplies, etc., (both in the amounts and chronology) you shouldn't have too much difficulty in establishing who the "real" owner of the properties is.

I agree with AdrianEvetts, the courts are going to know that the family didn't have a pot to pee in or a window to throw it out of before you came along. That will be much easier to prove if you've got the paperwork to show exactly where the money came from. They can say what they want, but haven't a hope in Hell of proving that if you've got documentation of the source of the funds.

Still, it a pretty sticky situation you've gotten yourself into and certainly not one that you're going to likely get yourself out of without a sharp lawyer.

Cheers,
James
expat.com Experts Team