Property due diligence

Property due diligence in Bali

Property due diligence in Bali is the set of checks carried out before leasing or acquiring land or a villa: the land certificate at the land office (BPN), the identity and authority of the owner and heirs, zoning, legal access, mortgages or seizures, land-tax status and, for existing buildings, the building approval (PBG) and certificate of fitness (SLF). ICM coordinates these checks with the notary and technical consultants and reports the findings before you commit.

Who this is for: Foreign investors about to lease land, acquire a villa or enter a development project in Bali Jurisdiction: Province of Bali, Indonesia Updated:

What the checks cover

Due diligence answers one question: can you legally and practically do what you plan to do with this property, with this counterparty, under this contract?

Title and ownership

  • Certificate check at BPN. The notary or land-deed official (PPAT) verifies that the certificate is genuine, registered and matches the plot.
  • Type of right. Freehold (Hak Milik), HGB or Hak Pakai — this determines what can be leased or transferred, and to whom.
  • Owner identity and authority. Identity documents, family card, and — for inherited land — the consent of all heirs. Marital property requires the spouse’s consent.
  • Encumbrances. Mortgages (Hak Tanggungan), blocks, disputes or court seizures registered on the certificate.
  • Land tax (PBB). Payment history, so that arrears do not follow the property.

Land and location

  • Zoning under the regency’s detailed spatial plan (RDTR) and the provincial plan: residential, tourism, agricultural, green belt or protected land. See land and zoning checks.
  • Protected agricultural land (LP2B) and productive rice fields. Conversion is now prohibited or restricted in Bali.
  • Coastal and river setbacks. Beachfront land is subject to a setback of at least 100 metres from the highest tide line under national regulation.
  • Legal access. A registered road or a written right of way, not an informal path over a neighbour’s land.
  • Boundaries and size. Physical measurement against the certificate.

Existing buildings

  • PBG and SLF. Whether the building has a building approval and a certificate of fitness for use, and whether what was built matches the approved drawings. See building permits PBG and SLF.
  • Technical condition. Structure, waterproofing, drainage, electrical and water systems.
  • Operating licences if the property is sold as a going rental business.

The contract

  • Term, extension mechanism and price of extension written as a formula, not as “to be negotiated”.
  • The heirs’ obligation to honour the lease.
  • Right to build, renovate and sub-lease.
  • Payment schedule linked to documents, not to dates.

How ICM runs it

  1. We review what the seller or agent has provided and list what is missing.
  2. We coordinate the notary for the land-office check and, where needed, a lawyer for litigation searches.
  3. We check zoning and access, visit the site and, for existing buildings, bring in a technical inspector.
  4. We deliver a written summary: what is confirmed, what is a risk, what must be fixed in the contract, and whether we would proceed.

We are on site in Bali, so the physical checks are done by us, not by a remote desk.

Red flags we see most often

  • Deposits requested before the certificate can be seen.
  • “The zoning will be changed later.”
  • One family member signing for land owned by several heirs.
  • A villa marketed as a rental business without PBG and SLF.
  • Extension clauses with no price or formula.

For the broader decision on structure and whether to proceed, see investment advisory.

Frequently asked questions

When should due diligence start?

Before any deposit or booking fee is paid and before a lease or sale agreement is signed. A deposit paid on unverified land is often the hardest money to recover.

Is a notary's check enough?

The notary or PPAT checks the certificate at the land office, which is essential. It does not cover whether the zoning allows your plan, whether access is legal, whether all heirs agree, or whether an existing building has its permits. Those checks need to be organised separately.

How long does it take?

It depends on the documents available and on the land office. We give a timeline after reviewing the documents the seller provides.