Why Due Diligence Matters in Bali Property

Bali's property market is dynamic and largely unregulated compared to Western markets. There is no mandatory broker licensing, no centralised Multiple Listing Service, and significant variance in the quality of legal advice available. This makes independent due diligence — before signing any agreement or paying any deposit — absolutely essential for foreign and domestic buyers alike.

The following checklist is not exhaustive, but it covers the most critical checks that Anara Property recommends to every client considering a property purchase in Bali.

The 10-Point Bali Property Due Diligence Checklist

  1. Verify the land certificate (sertifikat): Obtain a copy and verify its authenticity at the local BPN (National Land Agency) office. Confirm the title type (Hak Milik, HGB, Hak Sewa, etc.) and that it matches what is being sold.
  2. Check for encumbrances: Confirm no mortgages (Hak Tanggungan), liens, or disputes are registered against the title.
  3. Confirm zoning (RTRW): Verify the land's designated use under the regional spatial plan. Not all land in Bali is zoned for villa development — agricultural (sawah) land cannot be built on without reclassification.
  4. Confirm building permits (PBG): For completed buildings, check that a valid building permit exists and matches the actual structure.
  5. Check for environmental restrictions: Bali has several protected zones (green belt, beach setback of 100m, sacred building setback of 50m from temples). Verify the property is not in a restricted zone.
  6. Review the ownership history: A clean chain of title with no disputed transfers or inheritance complications is essential.
  7. Confirm seller identity and authority: If the seller is not the registered certificate holder, confirm the legal basis for their right to sell (power of attorney, inheritance, company directorship).
  8. Check for outstanding taxes: PBB (land and building tax) arrears remain with the property — confirm these are paid to date.
  9. Review the lease or sale agreement carefully: All contracts should be in Bahasa Indonesia (legally required) with an accurate English translation. Do not sign based on an English version alone.
  10. Use an independent PPAT: Never use the seller's or developer's recommended notary exclusively. Appoint your own independent PPAT or property lawyer to review the transaction.

Getting Expert Support

Anara Property conducts preliminary due diligence as part of our standard buyer representation service, and we can connect you with independent PPATs and property lawyers across Bali. Contact us before making any offer on a Bali property — the earlier we are involved, the more effectively we can protect your interests.