Our Client’s Case: Legal Resolution of Property Rental Issues in Bali

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The client approached us with an issue related to villa rental in Bali. He had rented a villa for 2 years, signed a long-term lease agreement with the owner, and immediately paid for the entire period. After almost a year of occupancy, the landlord decided to sell the villa and asked our client and his family to vacate voluntarily. The owner refused to refund the remaining prepaid amount, citing contract violations. However, he did not specify which clauses of the contract our client had breached.

What We Have Done

Our lawyers investigated the case and identified fraudulent actions by the villa owner. He had no right to evict the tenants before the contract expired. In the event of a villa sale, the transaction would be considered invalid.

Based on the evidence provided by the client (contract and payment confirmation), we drafted an official letter of claim to the landlord, informing them of our client’s legal status, specifically outlining their rights and which particular law had been violated. According to the Civil Code of Indonesia, a contract can only be terminated by mutual agreement of both parties.

We mentioned this in our letter:

“Your request asks our client to leave the villa before the lease ends is an unlawful act because it violates the provisions of Article 1338 of the Civil Code, which we quote as follows:

“All approvals made in accordance with the law apply as law to those who make it. THIS CONSENT CANNOT BE WITHDRAWN OTHER THAN BY AGREEMENT OF BOTH PARTIES, or for reasons determined by law. Agreements must be implemented in good faith.” (See Supreme Court Decision Number 1051K/ Pdt/ 2014)”

We proposed a resolution to the opponent, whereby they are obligated to refund the client’s advance payment; otherwise, our client has the full right to remain on the villa premises until the contract expires. Along with the letter, we attached a screenshot of the landlord’s demand on WhatsApp, indicating that legal proceedings would be the next step.

The opponent then notified us that they had a misunderstanding and did not ask the client to vacate the premises. As expected, the owner quickly changed his stance, and the villa is no longer for sale.

As expected, our claim prompted the owner to change their decision. They abandoned their plans to evict the tenants and sell the villa.

How to Protect Your Rights in Bali

Foreigners in Bali sometimes face unpleasant situations, such as:

  • Incorrect billing for services;
  • Landlord evicting tenants before the agreed term;
  • Tenants refusing to vacate;
  • Employers refusing to pay;
  • Issues with contractors, and so on.

If you find yourself in a similar situation and cannot resolve it independently, seek legal support from Legal Indonesia.

We can assist in drafting pre-litigation claims and represent you in legal proceedings.

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