It is almost always the first question buyers ask, before returns and before the opening date: how do I get out. A fair question for a property thousands of kilometres away, in a country whose law and language are unfamiliar. The answer fits in one sentence: a Kabisu villa is resold through a share transfer, at the seller’s price, with no commission.
Here is how that transfer works in detail, and what it protects.
A villa held in shares
The land and the villas of the Kabisu Resort belong to a dedicated Indonesian company, and that company belongs to its shareholders, the owners. Each villa corresponds to a fixed number of shares, which carry the rental income described in the villa shared pool. Buying a villa means subscribing those shares; reselling it means transferring them to a buyer.
This structure changes the nature of the exit. A property resale by a foreigner in Indonesia is a land transaction, with restrictions on foreign ownership and long lead times. A share transfer is a securities transaction: the transfer deed is prepared by a notary and signed remotely, the shareholder register is updated, the company records the change of ownership with the authorities, and the buyer takes over the same rights as the seller, contracts in hand.
A half villa follows the same mechanics. A fraction of a villa is a fraction of the shares, and every right reads pro rata. That is an advantage at resale time: shares can be transferred as a block or as a fraction, which widens the circle of possible buyers.
The transfer framework
The contracts frame the exit with safeguards known before the purchase, protecting the seller and the other shareholders alike.
The price belongs to the seller. The sale happens on the seller’s terms and at the seller’s price, whoever the buyer is. The decision to sell, and the amount asked, rest entirely with them.
A 30-day right of first refusal. Shares put up for sale are first offered to the company and the existing shareholders, who have 30 calendar days to step in, at the price the seller has set. After that window, an outside sale is free, and the price offered to a third party cannot be lower than the one presented to the shareholders. In practice, the most natural first buyers are often the other owners, who already know the project.
Protection if everything is sold. In the event of a majority sale of the company, or of all the villas to a single acquirer, joint-exit clauses (tag along and drag along) apply to protect the rights of shareholders.
Protection against dilution. The company commits that no issue of new shares will reduce the rights of existing holders. The stake bought today remains the same stake over time.
No commission on resale
No commission is withheld on a resale: the price the buyer pays is the price the seller receives. That is far from standard for this kind of product, where the operator often takes a cut along the way.
The seller also gets help finding a buyer: we relay the sale to our network and to the people who contact us, and we assist with the paperwork. A resale that goes well is also our best advertising.
Inheritance
An uncomfortable subject, and an essential one: on the death of a shareholder, the shares pass to the heirs, who sign a succession agreement carrying the same rights and the same terms. The investment does not end up stranded in a legal void on the other side of the world.
The tax side of a transfer
The tax treatment of a transfer, like that of dividends, depends on each person’s situation, country of residence and the applicable tax treaties. It is a matter for the investor’s usual adviser, to be consulted before any transaction, at purchase as at resale. For investors who do not have one, we can suggest an introduction to advisers who know the file.
How a villa held in shares is valued
The value at resale time depends on the rental income actually recorded and on the buyer across the table; it deserves better than a number tossed into an article. The method, though, is simple to explain, and rests on two supports.
The real assets. The shares represent a stake in a company that owns the land and the villas built on it. That is the floor of the value, independent of the operation.
Rental income. In practice, this is the main driver of the price. A secondary buyer thinks in yield: they weigh the shares’ annual income against the price they are willing to pay. A high, steady recorded income supports the value of the shares; a buyer demanding a higher yield will pay less for the same income. Resale value is built year after year, on the villas’ rental track record, which the operation described in villa maintenance exists to protect.
A Kabisu villa is exited through a share transfer framed by clauses known in advance, identical for a whole villa or a fraction, and its value is demonstrated by the land held and the income received. For any question, about resale or anything else, we are happy to answer, through the contact page or on WhatsApp.
