Bali Property Due Diligence Checklist

Before you transfer a deposit on a Bali property, you need more than a photograph of a land certificate. A complete Bali property due diligence checklist covers at least five independent layers: who owns the land and what land right exists, what the land is permitted to be used for, whether the building has the required approvals, whether the person or company selling has the authority to do so, and what you are actually getting under the contract. Each of these layers can produce a clean result or a serious problem regardless of what the others show.

This guide sets out the checks, the documents, what each document proves and — just as important — what it does not prove. It covers completed villas, leasehold transactions and off-plan projects. The underlying principle throughout is the same: verify before commitment of funds, not after.

Bali property due diligence: quick answer

Before paying a non-refundable deposit, verify at least seven things independently:

Check	What you need to confirm
Land title	Registered holder, land-right type, area and recorded encumbrances
Seller	Identity, authority to transact and any required co-owner or spousal consent
Zoning	Whether your intended residential, rental or development use is permitted
Access	Whether access is public or legally documented across another parcel
Building approvals	PBG or valid legacy IMB, plus SLF where applicable
Contract	Exact right acquired, term, extension, assignment, refund and default clauses
Property condition	Structure, drainage, electrical systems, pool, wastewater and boundaries

Under Government Regulation No. 128 of 2015, the official tariff for a land-certificate information check is Rp 50,000 per certificate. Professional fees charged by a PPAT, lawyer, surveyor or other adviser are separate and vary by scope.

---

Key Takeaways

• Land title and zoning are separate checks. A registered land certificate confirms ownership information; it does not tell you what the land may be used for.
• PBG and SLF answer different questions. PBG (Persetujuan Bangunan Gedung — building approval) relates to permission to build; SLF (Sertifikat Laik Fungsi — certificate of fitness for use) relates to whether a completed building may be occupied and used.
• Seller documents must be independently verified, not taken at face value. A copy of a certificate, even a clear one, is not the same as a verified BPN (Badan Pertanahan Nasional — National Land Agency) record.
• Leasehold requires contract due diligence, not only land due diligence. The quality of a leasehold depends on what the agreement actually says about term, extension, assignment and permitted use.
• Off-plan transactions add developer and construction risk. Checks on the developer entity and project approval matter as much as land checks.
• Legal due diligence and a physical building inspection are different processes. One does not substitute for the other.
• Large, non-refundable payments should not precede unresolved critical checks. If a document check raises questions, those questions belong before the payment, not after.

Not sure which Bali property structure fits your budget and plans?
Answer a few questions and get a shortlist of properties matched to your intended use, ownership structure and budget.
[Find properties that fit my criteria]

---

What Bali Due Diligence Covers

Due diligence, in the context of a Bali property transaction, is the process of independently verifying the material facts before you commit funds or sign binding agreements. It is not a single check, and it is not something a good photograph of a certificate replaces.

The process covers several distinct areas:

• Legal due diligence — verifying that the land right is valid, registered and unencumbered, and that the seller has the authority to transact.
• Planning and zoning — confirming what the land is permitted to be used for under the applicable spatial planning regulations.
• Building compliance — checking that a completed or proposed building has the required approvals and, in the case of a finished building, a certificate of fitness for use.
• Contractual review — understanding exactly what right you are acquiring, for how long, under what conditions, and what happens if things go wrong.
• Financial and tax review — identifying outstanding liabilities, transaction costs and tax obligations.
• Technical and physical inspection — assessing the actual condition of the structure, systems and site.
• Operational review — relevant where a property is bought as an active or planned rental business, covering licensing, existing agreements and management arrangements.

“Clean title” does not mean “clean transaction.” A property can have a valid, registered land certificate, correct zoning and a seller with full authority — and still have an unapproved extension, a structural drainage problem, a lease extension clause that offers no real protection, or an outstanding utility liability. Each layer of due diligence addresses risks that the others do not.

A reasonable sequence for most transactions looks like this: property identified → documents collected → independent checks across each layer → contract reviewed → outstanding issues resolved → payment and signing. The exact order will depend on the structure of the deal, and your advisers should guide the sequence for your specific transaction. What should not happen is payment preceding the resolution of critical open questions.

---

Check the Land and Ownership

Land and ownership verification is the foundation of Bali property due diligence. It tells you whether the land right being offered is real, registered, unencumbered and held by the person or entity claiming to sell it. This is where many buyers start — and often where they stop too early.

Land certificate and BPN verification

In Indonesia, land rights are administered by the BPN (Badan Pertanahan Nasional), the National Land Agency, which maintains the national land register. A land certificate is the document issued by the BPN that records the registered land right for a specific parcel.

The most important step in verifying a land certificate is checking it against the BPN’s own records — not simply examining a copy provided by the seller. A certificate copy can be forged, altered or relate to land that has since been encumbered or disputed. An independent land-record check confirms whether the certificate details correspond with the records held by the relevant Land Office, including the registered holder, recorded land data and registered encumbrances. It does not by itself confirm that fences, walls or other physical boundaries on site coincide with the registered parcel; where boundary accuracy is material, commission an appropriate cadastral or land survey.

This check is typically carried out by a qualified Indonesian legal professional or a PPAT (Pejabat Pembuat Akta Tanah — an authorised land deed official). You should also request the original certificate for inspection, not only a photocopy.

Electronic certificates and QR checks

Indonesia is progressively moving land-registration documents to Sertipikat Elektronik (Sertipikat-el).

An electronic certificate includes a QR code that can be used to check authenticity and the certificate’s current status through the Ministry’s electronic system. The Ministry also provides the Sentuh Tanahku application for access to land information and electronic certificates.

A QR or app check is useful as an initial screening step, but it does not replace the formal Land Office, encumbrance, zoning and legal checks required for a transaction.

Existing older paper certificates remain legally valid until they are converted through the applicable land-registration process.

Land right types

Main land and ownership structures

Structure	What it means	Foreign buyer relevance
Hak Milik / SHM	Strongest private land right	Cannot be held directly by a foreign national
HGB	Time-limited right to build and use land	May be held by qualifying Indonesian legal entities, including a PT PMA
Hak Pakai	Right to use qualifying land/property	Available to eligible foreign nationals subject to immigration and property requirements
Leasehold / Hak Sewa	Contractual right to use property for an agreed term	Common foreign-buyer structure; protection depends heavily on the lease wording

If you are a foreign national and the transaction involves Hak Milik land under a nominee arrangement — where an Indonesian holds the title on your behalf — be aware that nominee structures carry significant legal and practical risks. This article does not endorse or recommend such arrangements. For a fuller explanation of the ownership structures legally available to foreigners, see “How a foreigner can buy property in Bali“.

Girik, Letter C and other legacy land records

Not every document presented as evidence of land ownership is a registered land certificate.

Older documents such as Girik, Letter C, Petok D, pipil and similar customary-land records are not equivalent to an SHM, HGB or Hak Pakai certificate issued through the land-registration system.

Under Article 96 of Government Regulation No. 18 of 2021, written evidence relating to former customary ownership had to be registered within five years of the regulation taking effect. That five-year period ended on 2 February 2026. After that period, those documents no longer function as evidence of a registered land right and may instead serve only as supporting indications in a first-registration process.

For a buyer, the practical rule is simple: do not treat Girik, Letter C or similar village-level records as a substitute for a registered land certificate. If a transaction involves unregistered land, have the registration status and route reviewed separately before committing funds.

Encumbrances and registered restrictions

A land certificate check should also reveal whether the parcel carries a Hak Tanggungan — a registered mortgage or security interest. If the land is used as collateral for a loan, that encumbrance is registered in the land book and needs to be discharged before title can transfer cleanly. Do not assume a property is unencumbered without verifying this independently.

Also ask whether the parcel is affected by any customary or village-level rights, obligations or access arrangements that may not be obvious from the certificate alone. Bali’s local land context can involve desa adat or other customary interests, so this question should be checked locally rather than inferred solely from the registered title.

The check should also look for any registered restrictions, annotations or disputes on the parcel. Not all disputes are registered, which is one reason why land due diligence cannot guarantee a problem-free history — but a registered entry is an immediate flag requiring investigation.

Land area and survey

Compare the land area stated on the certificate against any site plan, against the physical site, and against what is described in any purchase or lease agreement. Discrepancies in area can have material consequences for price, permitted development and boundary disputes. Physical boundaries — walls, fences, plantings — do not necessarily correspond to the registered parcel boundaries. Where there is doubt, an independent survey should be commissioned.

What the certificate proves

A land certificate confirms: the type of land right, the registered holder, the parcel identification, the stated area, and (in most cases) the registered encumbrances at the time of the check. It confirms these things as they appear in the BPN register.

It does not confirm: what the land may be used for, whether any building on the land has the required approvals, the technical condition of the property, the profitability or legality of a rental business, or whether the seller’s authority to transact is uncomplicated.

Check the seller

Once the land is verified, check the person or entity offering to sell or lease it. Required documents and questions typically include:

• Government-issued identity document (KTP for Indonesian nationals)
• Confirmation that the identity matches the certificate holder
• Marriage status — in some cases, spousal consent is required for a valid transaction
• If the land is co-owned, written authority or consent from all co-owners
• For inherited property, documentation of the chain of succession and authority of the person signing
• If a power of attorney is used, the original PoA, its scope, and verification that it was not revoked
• For a corporate seller, company registration documents, articles of association, and confirmation of who is authorised to sign and whether all corporate approvals required by the articles and applicable law have been obtained for this specific transaction

Documents to request before paying a deposit

Ask the seller, lessor or developer for the relevant documents before you commit significant funds:

Property / party	Documents to request
Land	Land certificate, survey/parcel information and available title history
Individual seller	KTP, marital-status information and any required spouse/co-owner consent
Representative	Power of attorney and evidence that it remains valid
Company	AHU corporate record, articles, NIB/business licensing and signatory authority
Existing building	PBG or valid legacy IMB, SLF where applicable, approved drawings
Leasehold	Full lease agreement, amendments and any previous assignment/sublease documents
Off-plan	Land documents, project approvals, plans/specification, construction schedule and payment schedule
Rental property	Relevant licences, management contract, utility/account history and existing bookings/contracts

Receiving a document is only the first step. Material documents should be verified independently rather than accepted solely because the seller supplied them.

---

Verify Zoning, Boundaries and Access

Ownership and permitted land use are independent systems. A parcel of land can be registered in someone’s name, with a valid certificate and no encumbrances, and still be in a zone where the intended development or commercial use is not permitted. Checking zoning is not optional — it is a separate and essential step from verifying the land certificate.

Spatial planning: RTRW, RDTR and KKPR

Spatial planning in Bali operates under a hierarchy of regulations. At the regional level, the RTRW (Rencana Tata Ruang Wilayah — regional spatial plan) sets out broad land use categories. The RDTR (Rencana Detail Tata Ruang — detailed spatial plan) provides parcel-level zoning detail where it has been adopted.

A KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang — spatial use conformity) relates to confirmation that a proposed activity is consistent with the applicable spatial plan. Depending on the activity, location, applicable RDTR and licensing route, confirmation or approval of spatial-use conformity through the applicable KKPR process may be required as part of the development approvals.

You need to confirm — in writing, from a reliable source — what zone the parcel sits in and what uses that zone permits. Verbal confirmation of zoning from the seller is not sufficient. Zoning can restrict the type of structure that may be built, the maximum footprint and building height, setback distances from boundaries, and whether commercial or tourist accommodation use is permitted.

Tourism, residential and other zoning designations

In Bali, the zoning distinction between residential and tourism/commercial is important, particularly for buyers intending to operate villa rentals. A parcel in a zone designated for residential use may face restrictions on short-term commercial rental use. Specific rules — including setback requirements, building coverage ratios and activity permissions — depend on the applicable spatial planning documents for the relevant regency or area. Buyers should have these confirmed by an Indonesian legal professional with knowledge of the specific location, rather than relying on general descriptions.

Equally, land in areas with agricultural or environmental protection designations may carry constraints on clearing, building or access. The specific rules depend on the applicable regulation and the parcel’s designations — broad generalisations about “green zones” or “agricultural land” without specific reference to the parcel and its planning documentation can be misleading.

Access: registered versus practical

One of the most practically significant issues in Bali property due diligence, and one that is underexamined in many checklists, is access. A parcel may look accessible — you drove to it, the seller walked you across it — but the access road may not be formally documented as serving that parcel.

If access to the land depends on crossing a neighbouring parcel, this needs to be formally documented. An informal arrangement with a neighbour, or a road that has historically been shared without formal right of way, can become a serious problem when ownership changes. Ask specifically: Is the access road a public road? If not, is there a legally documented right of way or access agreement? What is the road surface condition? Who is responsible for maintaining it?

Physical access based on goodwill alone should be treated as a red flag requiring written confirmation before proceeding.

Boundaries

Physical boundaries — walls, fences, hedges, irrigation channels — do not automatically correspond to the registered parcel boundaries. When the seller points to a wall and says “that’s our boundary,” that may or may not be accurate. Where boundary accuracy matters (and it usually does, both for the price paid and for any development plans), an independent survey that maps the physical site against the certificate data is worth commissioning.

---

Check PBG, SLF and the Building

Building approvals in Indonesia shifted from the old IMB (Izin Mendirikan Bangunan) system to the PBG and SLF system following Government Regulation No. 16 of 2021, which is administered through the SIMBG portal — the government’s official building management information system (simbg.pu.go.id).

Understanding what these documents do and do not confirm is one of the more important distinctions in Bali property due diligence.

PBG (Persetujuan Bangunan Gedung) is approval to build — it is issued before construction begins and sets out what may be built: the approved function (residential, commercial, hospitality, etc.), footprint, floor area, number of floors and other building parameters.

SLF (Sertifikat Laik Fungsi) is a certificate confirming that a completed building has been inspected and found fit for the approved function. It is obtained after construction is complete. Confirm when it must be issued for lawful use or operation of the specific building type, and make its delivery a contractual handover condition where appropriate.

IMB was the predecessor building permit system. Buildings with an IMB issued before the transition to PBG are not automatically invalidated — the SIMBG system notes that some IMBs issued under the prior regime continue to apply subject to applicable conditions. However, the specific situation of any property with an old IMB should be reviewed carefully, not assumed to be straightforwardly valid or invalid.

Document matrix

Document/check	What it can confirm	What it does not confirm	Buyer action
Land certificate (verified against BPN)	Registered land right, holder, area, encumbrances	Permitted use, building compliance, physical condition	Request original; conduct independent land-record check with Land Office
Zoning / RDTR / KKPR	Permitted land use categories for the parcel	Whether existing structures comply, physical boundaries	Verify in writing from applicable planning authority or legal professional
PBG (or valid IMB)	Approved building function, footprint, floors	Whether the finished building matches the approval, fitness for use	Compare approved plans against as-built structure
SLF	Completed building was found fit for approved function at time of issuance	Current physical condition, compliance with subsequent alterations	Review against current building; commission physical inspection
Physical / technical inspection	Current condition, defects, maintenance state	Legal compliance, title, zoning	Commission independent surveyor or engineer

The gap between approval and reality

Having a PBG is not the same as having a building that matches the PBG. Alterations, extensions, additional structures and changes of use that were added after the original approval — without a corresponding amendment to the approval — are a common source of problems. Ask for the approved drawings and compare them with the building as it actually exists. Look specifically for structures, floors or areas that do not appear in the approved plans.

Similarly, an SLF was issued at a specific point in time. It does not describe the building’s condition years later, after tropical climate exposure, renovation activity or deferred maintenance. An SLF is evidence of compliance at the time it was issued — it is not a current structural warranty.

Where the approved function listed on the PBG or SLF is residential and the intended use is short-term commercial rental, that is a zoning and licensing question that goes beyond the building approval documents themselves.

---

Verify the Seller or Developer

Whether you are buying a completed villa or committing to an off-plan project, the person or company on the other side of the transaction needs the same level of scrutiny as the property itself.

Individual seller

For a private seller, the key questions are:

• Does the seller’s identity (confirmed by original government ID) match the name on the land certificate?
• Is the seller the sole holder of the right, or are there co-owners?
• If married, is spousal consent required and has it been given?
• For inherited property: has the succession been properly documented, and is the person signing the sole heir or one of several?
• If a power of attorney is presented: is it original, currently valid, and does it authorise this specific type of transaction?
• Are there outstanding financial obligations secured against the property?
• Who is contractually entitled to receive payment?

None of these points should be assumed. Each needs to be verified from source documents, not taken on the seller’s word.

Developer or company

For off-plan purchases or transactions with a company as seller, the scope of checks expands:

• Is the company a legally registered Indonesian entity? Verify the company’s legal existence and current corporate details through the Ministry of Law’s AHU company records (ahu.go.id), which maintain the official registry for Indonesian legal entities. Separately verify the company’s NIB (Nomor Induk Berusaha — single business registration number) and relevant business-licensing information through the OSS (Online Single Submission) system (oss.go.id). An NIB check alone should not substitute for corporate-registry and constitutional-document review.
• Is the company’s registered business activity consistent with property development or sale?
• Confirm who is authorised to sign and whether the company’s articles, corporate records and applicable Indonesian law require any director, commissioner, shareholder or other corporate approval for the specific transaction.
• Does the company hold — or have the right to develop — the land in question? This should be verified against the land certificate, not only the company’s marketing materials.
• Has the developer obtained, or applied for, the required project and building approvals?
• What is the developer’s track record? Completed projects in the same area provide evidence of delivery. Requested references from buyers of completed units should be followed up.
• What is the corporate and financial structure of the development? Are funds being received into the development entity, or into a personal account?

A polished showroom, active social media or a famous-sounding brand is not due diligence evidence. Verify the legal entity, the land, the approvals and the authority to transact — independently of the sales presentation.

If the transaction involves a PT PMA

A PT PMA adds a second due-diligence layer: you are checking not only the property, but also the company.

Confirm:

• the company’s current AHU corporate records and articles;
• its NIB and relevant KBLI/business activities;
• that its licences are appropriate for the intended activity;
• its authority to hold or develop the relevant land right;
• outstanding company tax, filing and contractual obligations where you are acquiring an existing company;
• whether the deal is an asset/property transaction or a share acquisition, because the liabilities and due-diligence scope are different.

Buying shares in a company that holds property is not the same transaction as acquiring a property right from that company. Existing corporate liabilities may matter in a share acquisition, so the company itself needs separate legal, financial and tax review.

---

Read the Contract Before Paying

Contract review is where many buyers, particularly those managing a transaction remotely, take shortcuts they later regret. Having an Indonesian lawyer review the contract is not a formality — it is one of the most material checks in the process.

The lease or purchase agreement should be reviewed before any significant payment is made. The following points need specific attention:

What you are actually acquiring:

• The exact asset or right — land area, building, which lease you are entering or acquiring
• The identity of all parties and their authority to sign
• Whether you are entering a new lease, taking an assignment of an existing lease, or entering a sublease — and what legal protections apply to each

Language and governing version:

• Where the agreement involves an Indonesian individual or Indonesian private entity, check compliance with Indonesia’s mandatory Bahasa Indonesia requirements under applicable Indonesian law. If a bilingual or multilingual contract is used, ensure the versions are consistent and the agreement clearly states which language will govern if an interpretation differs between versions.

Duration and extension (for leasehold):

• Precise commencement and expiry dates
• The extension mechanism — is the landlord obligated to extend, under what conditions, and at what price? A lease that merely says “extension available” without defining a binding mechanism may give the tenant limited certainty about whether an extension will actually be granted and on what terms

“Extension available” and a contractually enforceable extension mechanism are not the same thing.

• Is the extension price fixed, indexed or subject to renegotiation at the landowner’s discretion?

Use, assignment and subletting:

• What use is the property permitted for under the contract?
• Does the lease give the tenant a contractual right to assign or transfer the remaining lease term, and is the landowner’s consent required?
• Is subletting or short-term rental permitted, and under what conditions?

What happens if things go wrong:

• For off-plan: construction milestones, completion deadline, delay remedies, and what the buyer can do if the project is not completed
• Cancellation conditions and refund terms — is the deposit refundable if due diligence reveals a problem, and under what conditions?
• Dispute resolution — governing law and jurisdiction

Payment mechanics:

• Who receives payment and in what form
• Whether payment milestones (for off-plan) are tied to documented construction progress
• What invoicing and receipts will be provided

The ownership structures available to foreign buyers — including leasehold, HGB through a PT PMA (a foreign-owned Indonesian company), and Hak Pakai — each carry different contract requirements and practical considerations. Another structure may involve an Indonesian legal entity such as a PT PMA holding an eligible land right, including HGB where the legal requirements are met; in that structure, the land right is held by the company, and the foreign investor owns an interest in the company rather than personally holding HGB. For a comparison of the main approaches, see “Leasehold vs freehold in Bali“.

---

Inspect the Property Itself

Legal due diligence and a physical building inspection are separate processes, and one does not substitute for the other. A property can be legally impeccable — valid certificate, correct zoning, building approval in order — and still have a roof that lets in water, a pool shell that is cracking, or electrical wiring that needs complete replacement.

For a completed villa, a physical inspection should systematically cover:

Structure and envelope:

• Roof condition — tiles, timber framing, waterproofing membrane
• External walls — cracks, render condition, damp penetration
• Foundation and retaining walls, particularly on sloping sites
• Signs of settlement or movement

Water management:

• Drainage — site drainage, roof drainage, pooling water near structures
• Signs of flooding, historic water ingress or rising damp
• Mould or staining that may indicate recurring moisture problems

Pool:

• Pool shell — cracks, delamination, waterproofing integrity
• Equipment — pumps, filters, heating systems, plumbing connections

Building services:

• Electrical system — age, condition, earthing, whether it meets applicable standards
• Plumbing — water source (well, PDAM mains, or both), pipe condition, hot water systems
• Air conditioning — age, service records, condition of units and drainage
• Septic/wastewater — type, capacity, condition, proximity to water sources

Finishes and fittings:

• Timber — condition, signs of rot, termite damage
• Corrosion on metal components in the tropical climate
• Condition of kitchen, bathrooms, fixtures

Site:

• Boundary walls
• Road drainage at the property frontage
• Any physical evidence of past or potential flooding
• Vegetation that may affect structures

For a serious purchase, these checks should be carried out — or at minimum reviewed — by an independent surveyor or building professional. Do not rely solely on the seller’s maintenance records or on your own visual impression during a showing.

Physical red flags worth investigating

• Patched or recently re-rendered sections of wall that conceal potential cracking underneath
• Unusually high vegetation or soil level against ground-floor walls (damp risk)
• Water staining on ceilings or upper walls
• Pool water level significantly below the tiled edge
• Rust or corrosion staining around structural steel or fixings
• Fresh paint in a pattern that suggests concealment of defects
• Mismatched floor finishes, tile repairs or ceiling patches
• Retaining walls with drainage issues on sloping sites
• No visible or accessible drainage channels at the base of structures
• Absence of any maintenance records for a villa claimed to have operated as a rental

---

Check Money Before Money Moves

Payment schedules should follow verified contractual milestones — not substitute for due diligence.

Financial and payment due diligence covers two related but distinct concerns: the money you are about to pay, and the financial liabilities already attached to the property.

Before paying

Reservation or deposit: The contract needs to be clear about whether the deposit is refundable, under what conditions, and within what timeframe. If due diligence reveals a material problem, does the deposit come back? The trigger for a refund should be explicitly stated in writing — “fully refundable” is meaningless without a defined trigger and deadline.

Who receives payment: Payment should normally be made to the contractual seller or developer, or through a clearly documented escrow or other authorised payment arrangement. Any third-party or personal account should be independently explained, contractually documented and reviewed before funds are transferred. Obtain documentary evidence — invoice, receipt, payment record — for every transfer.

Staged payments (off-plan): Off-plan payment schedules should be tied to documented construction milestones, not simply to calendar dates. Before making each milestone payment, ask for evidence that the corresponding stage has been reached. A payment schedule that moves money before corresponding construction progress has been demonstrated removes the buyer’s main financial protection.

Property financial liabilities to check

Outstanding taxes: The PBB (Pajak Bumi dan Bangunan — land and building tax) should be current. Request evidence that PBB-P2 is fully paid before completion. Outstanding PBB can complicate or delay tax validation, transfer-related procedures and updating of the property’s tax records, so responsibility for any arrears should be resolved expressly before closing.

Transaction costs: Taxes and transaction costs depend on the legal structure of the deal. A transfer of qualifying land or building rights may involve seller-side income tax and buyer-side BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan — acquisition duty on the transfer of land and building rights), together with PPAT/notarial and administrative costs. A contractual lease has a different tax and document-duty profile. Have the applicable taxes for the specific transaction structure confirmed by a qualified Indonesian tax professional before agreeing the payment schedule. PBB-P2 and BPHTB are administered at the local government level, and procedures vary by regency.

Ongoing liabilities: For properties with existing rental operations, check for outstanding management fees, platform balances, utilities and service agreements, and establish whether each item remains with the seller, is settled at handover or is expressly assumed by the buyer.

Currency and documentation: Maintain clear records of all foreign currency conversions and transfers. For significant international transfers, proper documentation of the transaction — purpose, parties, amounts — supports compliance requirements and provides a clear record if any dispute arises.

---

Checks by Property Type

The core due diligence framework applies to all property types, but the emphasis and specific checks vary meaningfully depending on whether you are buying into a leasehold arrangement, purchasing a completed villa, or committing to an off-plan project.

Leasehold

A leasehold transaction is fundamentally a contract — which means contract quality is the central due diligence question, on top of the underlying land and ownership checks.

Specific checks for leasehold:

• Who is the registered certificate holder, and does the lease agreement reflect that person or entity as the landowner/lessor?
• Is the original lease available for review, or are you entering an assignment or sublease of an existing agreement?
  • If the lease has previously been assigned, obtain and review the full chain of lease agreements, amendments, assignments and required landowner consents. Confirm that the person now transferring the lease acquired the rights they claim to hold and is permitted to transfer them again.
• What is the remaining lease term from the actual commencement date (not just the advertised headline duration)?
• Is the extension clause a binding obligation on the landowner, or simply an option to negotiate?
• If an extension price is stated, how is it calculated, and is it fixed or subject to future revision?
• What happens if the landowner sells the underlying land? Does the lease bind a new owner?
• Does the lease give the tenant a contractual right to assign or transfer the remaining lease term, and is the landowner’s consent required?
• Is short-term rental use explicitly permitted under the lease?

Completed villa

Beyond the standard land, zoning and seller checks:

• Obtain and review the PBG (or valid pre-transition IMB) and SLF
• Compare the approved footprint and function against what has actually been built
• Commission an independent physical inspection
• Review utility history and management records
• Check whether there are existing rental agreements, management contracts or operator agreements that will survive the transaction
• Confirm the licensing position if the villa operates or is intended to operate as short-term accommodation
• Ask whether any existing bookings or contracts need to be resolved as part of the handover

Off-plan

Off-plan adds the risks of incomplete construction, developer viability and approval status to every other due diligence concern.

Additional checks specific to off-plan:

• Verify the land on which the project will be built — same checks as for any other transaction
• Confirm zoning permits the intended development and use
• Check project and building approval status: has the PBG been obtained, or only applied for?
• Verify the developer’s legal entity through the AHU company registry and NIB through the OSS system
• Confirm the developer has the legal right to develop the specific parcel
• Review project specifications and unit identification in detail — vague descriptions create disputes at handover
• Review drawings and ask what process governs changes to specifications
• Assess the payment schedule against construction milestones — do payments track progress?
• Understand what the contract says about delays, non-completion and cancellation
• Ask what recourse the buyer has if the project does not proceed

Due diligence area	Leasehold	Completed villa	Off-plan
Land certificate & BPN	Essential	Essential	Essential
Zoning & permitted use	Essential	Essential	Essential — before commitment
PBG / building approval	For existing structures	Essential — obtain and compare	Critical — confirm obtained or in process
SLF	For existing structures	Essential	Confirm when required for lawful use; make delivery a contractual handover condition
Seller/developer authority	Individual check	Individual check	Developer entity (AHU + OSS) + authorised signatory + project right
Contract: term and extension	Central check	N/A for freehold purchase	N/A
Contract: specification and milestones	N/A	Handover condition	Central risk area
Physical inspection	Existing structures	Comprehensive before purchase	Phased — inspect at each milestone
Developer track record	Landlord background	N/A	Critical — verify completed projects
Payment security	Refundable conditions	Standard	Payment milestones vs construction progress

---

Still deciding which Bali property fits your budget, intended use and ownership structure? ULU Homes can help you identify suitable options before you invest time in due diligence. Find properties that match your criteria.

Before paying a deposit: recommended order

1. Identify the exact parcel and transaction structure.
2. Collect the land, seller/developer and building documents.
3. Verify the land record, encumbrances, zoning and access independently.
4. Review PBG/SLF and compare the approved building with reality.
5. Have the contract and payment/refund provisions reviewed before signing.
6. Resolve material issues in writing before funds become non-refundable.

Some checks can run in parallel. The important point is that a non-refundable payment should not become the moment when the buyer first discovers unresolved title, zoning, permit or contractual issues.

---

Red Flags That Should Slow the Deal

The following situations require investigation, clarification or pause before proceeding. They are not an automatic finding of fraud or misrepresentation — but each represents a situation where proceeding without additional information exposes the buyer to unnecessary risk.

Red flag	Why it matters	What to request	Decision
Pressure to pay before checks are complete	Limits buyer’s ability to withdraw safely	Written confirmation of refund conditions; timeline extension	Pause
Only a copy or photograph of the certificate available	Cannot verify authenticity or current register status	Original certificate; independent land-record check	Investigate
Seller refuses to provide supporting documents	Raises questions about what the documentation would show	Written explanation and document list; seek legal advice	Pause
Identity on ID does not match certificate	Could indicate incorrect documentation, third-party arrangement or fraud	Identity reconciliation with PPAT; independent legal advice	Pause
Authority to sign is unclear or delegated informally	Transaction could be invalid	Original power of attorney; company resolution; legal review	Investigate
Permit “in process” presented as equivalent to issued permit	Future permit issuance is not certain; project risk is real	Confirm application reference; assess risk of non-approval	Investigate
Zoning confirmed only verbally or by the seller	Planning restrictions require written confirmation from official source	Written zoning confirmation; RDTR/KKPR check	Investigate
Physical access depends on neighbouring land with no formal documentation	Future access could be blocked or disputed	Legally documented access rights; legal review	Investigate
Lease extension described as “guaranteed” without a clear contractual mechanism	Contract may offer no real extension right	Review actual extension clause wording with lawyer	Pause
As-built building materially differs from approved plans	Unapproved structures carry compliance and resale risk	Approved drawings; SLF scope; advice on regularisation options	Investigate
Payment requested into a personal or unrelated account without explanation	Payment may not be contractually valid; recovery is difficult	Clear contractual basis; payment to named entity or documented escrow	Pause
Off-plan payments required ahead of corresponding milestones	Buyer loses financial leverage with no construction progress	Revised payment schedule tied to documented milestones	Pause
Buyer advised not to use independent professional adviser	Legitimate transactions should withstand independent review	Proceed with independent adviser regardless	Proceed with adviser
Rental income projections without underlying evidence	Claims may not reflect actual market conditions	Historical accounts, booking records, licence status	Investigate
Material physical defects visible during viewing	Legal due diligence will not identify or resolve structural issues	Independent surveyor; engineering assessment; price renegotiation	Investigate
Conflicting land area figures across documents	Could affect price, planning and boundary assessments	Reconcile all figures; independent survey if needed	Investigate

What you can screen yourself — and what requires professional verification

You can screen yourself	Do not treat as a substitute for
Read the certificate type, area and expiry information	Formal Land Office verification
Check available map/location information	Cadastral boundary verification
Compare the villa with approved plans	Professional technical inspection
Review developer marketing claims and past projects	AHU/OSS/legal due diligence
Read the advertised lease term	Independent contract review

---

Who Checks What

No single professional automatically covers the full scope of Bali property due diligence. Understanding who is responsible for each check helps buyers assemble the right team and avoid assumptions.

Check	Evidence	Who normally verifies	When
Land title & BPN register	Certificate original; Land Office record check	PPAT or independent Indonesian lawyer	Before deposit or as a deposit condition
Encumbrances and registered restrictions	Land book; Hak Tanggungan register	PPAT or independent Indonesian lawyer	Before deposit
Zoning & permitted use	RDTR/KKPR documentation; local planning authority	Indonesian lawyer with local planning knowledge	Before significant payment
PBG/IMB and SLF	Building approval documents; SIMBG records	Indonesian lawyer; planning professional	Before purchase of completed villa; early in off-plan
Seller identity and authority	Government ID; company documents; PoA	PPAT and/or independent lawyer	Before signing
Developer corporate status	AHU company registry; NIB via OSS	Indonesian lawyer	Before off-plan deposit
Contract review	Draft agreement	Independent Indonesian lawyer	Before signing any binding document
Technical and physical inspection	Site survey; inspection report	Independent surveyor, engineer or building professional	Before final commitment on completed villa
Tax and transaction costs	Tax regulations; accountant advice	Indonesian tax professional	Before final payment structure is agreed
Commercial and operational	Licences; management agreements; operator contracts	Lawyer and/or operational adviser	Before off-plan or rental-property acquisition

The PPAT (Pejabat Pembuat Akta Tanah) is the authorised official who prepares land title deeds and processes certain land transactions. A PPAT is not the same as an independent legal adviser working solely in the buyer’s interests. For transactions of material size, retaining an independent Indonesian lawyer separately — someone whose role is specifically to advise the buyer — is a reasonable precaution.

If you are conducting part or all of this process from outside Indonesia, the importance of independent verification only increases. Physical presence is not required to complete many checks, but remote buyers need to be especially rigorous about document verification and should not rely on documentation provided solely by the selling party. For a detailed look at how remote purchases are typically structured, see “How to buy property in Bali remotely“.

---

Final Due Diligence Checklist

This checklist is intended as a practical reference before commitment of funds. It summarises the checks covered in this guide — refer to the relevant sections for detail on each item.

Land

• Original land certificate obtained and inspected
• Independent land-record check conducted — registered holder, area, encumbrances confirmed against Land Office records
• Land right type confirmed and appropriate for intended transaction structure
• No registered mortgages, Hak Tanggungan or restrictions, or these are being resolved
• Land area consistent across certificate, site plan and agreement
• Physical boundary independently assessed where material

Planning and permits

• Zoning confirmed in writing — RDTR/KKPR obtained or checked
• Intended use (residential, commercial rental, development) confirmed as permitted
• Legally documented access to the parcel confirmed — including the status of the access road and any easement, access agreement or other right relied upon, with registration checked where applicable
• PBG (or valid IMB) obtained and reviewed
• SLF obtained and reviewed for completed buildings; delivery timing confirmed in contract for off-plan
• As-built structure compared against approved drawings

Seller / developer

• Seller identity verified against original government ID
• Seller identity matches registered certificate holder
• Co-ownership, spousal consent and inheritance authority checked where applicable
• Power of attorney verified if used
• For company seller: legal entity verified via AHU registry, NIB checked via OSS, authorised signatory and required corporate approvals confirmed
• For off-plan developer: company entity, business activity, right to develop, project approvals and track record checked
• Outstanding obligations and encumbrances on the property identified

Contract and money

• Contract reviewed by independent Indonesian lawyer before signing
• Exact asset or right acquired clearly defined
• Language compliance and governing-version clause confirmed for bilingual agreements
• Lease term, commencement, expiry and extension mechanism confirmed (leasehold)
• Assignment rights, sublease and permitted use rights confirmed
• Refund conditions for deposit explicitly stated in writing
• Payment recipient matches the contracting entity, or escrow/authorised payment arrangement documented
• Off-plan payment milestones tied to documented construction progress
• Cancellation, delay and dispute resolution clauses reviewed
• PBB-P2 arrears resolved before closing; tax obligations for the specific structure confirmed
• Transaction costs and tax obligations understood and confirmed for the specific deal structure

Building / handover

• Independent physical inspection completed or commissioned
• Structural, drainage, pool, electrical and mechanical systems assessed
• No material defects without agreed remediation or price adjustment
• Handover condition and specification confirmed in writing
• For off-plan: specification, unit identification and milestone conditions in contract

Already know what you need to check? Now shortlist the properties worth checking.
Use our Bali property quiz to filter options by budget, location, property type and intended use.
[Get my Bali shortlist]

---

Before You Commit

The aim of property due diligence in Bali is not to make a transaction risk-free — no process does that. The aim is to understand what you are actually buying, who you are buying it from, and what rights, protections and obligations the deal creates, before significant funds change hands.

That means checking the land against the Land Office register, not just a certificate copy. It means verifying what the land is permitted to be used for, separately from the title check. It means reviewing whether a completed building has the required approvals and whether the structure matches them. It means understanding exactly what a lease agreement commits both parties to — not what a sales summary says it commits them to. And it means having the physical condition of the building assessed by someone who is looking for problems, not selling the property.

Due diligence reduces uncertainty. It does not eliminate every risk, and this article is intended for buyer education — not as a substitute for professional advice on a specific transaction. Any property purchase or long-term lease in Bali of material value warrants independent advice from qualified Indonesian legal, tax and technical professionals who can apply these checks to your specific deal. Their review of the actual documents, the actual parcel, and the actual contract will always matter more than any general checklist.

The information in this article reflects publicly available regulatory frameworks and is provided for educational purposes. Regulations, government systems and market conditions change — verify current requirements with qualified Indonesian professionals before transacting.