Bali Villa Due Diligence Checklist
Buy Villas in Bali Editorial Team · Last reviewed
Property due diligence in Bali is not optional paperwork — it is the process that determines whether the land can legally be built on, sold, or leased to you at all, and whether the seller genuinely has the right to transact. Because certificate systems, zoning maps and permit records are held across several different offices, no single document tells the whole story.
This checklist outlines the categories a competent Indonesian lawyer or notary/PPAT should investigate. It is a guide to what to ask for, not a substitute for engaging qualified local counsel — due diligence findings can materially change the price or kill a deal, and should always be completed before any deposit is paid.
Certificate verification at BPN
- Confirm the certificate type: Hak Milik, HGB, Hak Pakai, or Hak Sewa document — each carries different rights and different eligibility for foreign involvement.
- Request an official check (pengecekan sertifikat) at the Kantor Pertanahan (BPN/ATR land office) to confirm the certificate is genuine, current, and matches the physical plot.
- Verify the certificate is free of pending court disputes or third-party claims registered against it.
Land history and chain of title
- Trace how the current owner acquired the land and confirm the chain of prior transfers is documented and consistent.
- Check for any customary (adat) land claims or unresolved inheritance issues, which are common sources of dispute in Bali.
Seller identity and legal capacity
- Verify the seller's identity documents (KTP/passport) match the name on the certificate.
- If the seller is a company, verify its legal registration and the authority of the signatory to bind it.
Spousal and heir consent
- Under Indonesian marital property rules, a married seller's spouse may need to consent to the sale — confirm marital status and obtain spousal signature where required.
- Where the land was inherited, confirm all heirs have agreed to the sale or have been properly bought out, to avoid future claims.
Zoning — RTRW and the Bali colour-code plan
Bali's spatial plan (Rencana Tata Ruang Wilayah, RTRW) designates land use zones — including agricultural, green/conservation, tourism and residential — and this determines what can legally be built. Verify the plot's zoning status with the local Dinas Penataan Ruang or relevant regency office before assuming a villa or commercial use is permitted.
IMB/PBG building permit and SLF
- Confirm the property has a valid building permit — historically IMB (Izin Mendirikan Bangunan), now transitioning to PBG (Persetujuan Bangunan Gedung) under national deregulation reforms.
- For completed buildings, check for a Sertifikat Laik Fungsi (SLF), confirming the building has been certified fit for use/occupancy.
- A villa built or extended without permits carries real legal and resale risk, even if it currently operates without issue.
Access road, boundaries, and utilities
- Confirm the legal status of the access road to the property — informal or disputed access arrangements are a frequent source of later conflict.
- Commission an independent boundary survey (measured against the certificate) rather than relying on fencing or verbal description.
- Verify legal connections for electricity (PLN), water and, where relevant, groundwater permits.
Environmental rules, setbacks and encumbrances
- Check required setbacks from rivers, cliffs, coastlines or rice-field irrigation (subak) systems, which restrict how close structures can be built.
- Search for any registered encumbrances: mortgages (hak tanggungan), liens or pending legal claims against the certificate.
If buying via a lease: key contract clauses
- Confirm the lease term, any extension option, and exactly how the start date is defined relative to handover.
- Check clauses on transferability/sub-lease, exit and compensation on early termination, and who is responsible for PBB and maintenance.
- Have the lease independently reviewed and, where the term justifies it, notarised or registered.