Due diligence when buying Bali property: what to check

Due diligence is the set of checks that confirm a property is what the seller says it is, and that you can safely buy it. It is the most important stage of any Bali purchase. A good price on a plot with a title problem is not a good deal. Here is what a thorough check covers.

The certificate and title

Start with the land certificate. Confirm the class of title (for example Hak Milik, Hak Guna Bangunan, or Hak Pakai), that it is genuine, and that the person selling is the registered owner or is properly authorised to sell. The name, the size, and the location on the certificate should all match the property in front of you. A notary (PPAT) verifies the certificate against the land office records.

Charges, disputes, and inheritance

Check that the land is free of mortgages or charges, is not subject to a dispute, and is not caught up in an unresolved inheritance among family members. These are common causes of a sale falling apart or a title being challenged later. This check happens at the land office and through the notary.

Zoning and permits

Confirm the zoning allows your intended use, whether that is a home, a rental, or a development. If a building already exists, check it has the correct building permit. If you plan to build, confirm a permit for your plan is realistic on that zone. Zoning is checked against the official spatial plan, not against what neighbours have built.

Boundaries, access, and physical checks

Verify the physical boundaries match the certificate, ideally with a surveyor. Confirm there is legal road access to the plot, not just a path used by goodwill. Check practical matters such as water, electricity, and drainage, and for coastal or riverside land, any setback rules that limit how close to the water you can build.

Get it in writing and make it conditional

Any preliminary agreement and deposit should be conditional on these checks passing. If something does not clear, you want the right to walk away and recover your deposit.

The pattern to remember: verify the paper, verify the land, verify the use, then pay.

This is general information, not legal or tax advice. Take professional advice on your own situation.

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