The Complete Due Diligence Checklist for Buying in Bali
February 18, 20269 min read
Due diligence is where Bali purchases succeed or fail — and it is the part of our work we take most seriously. Below is the actual checklist framework we run with independent legal counsel before any Bhagawan Property client commits to a purchase. Use it even if you never work with us.
1. The certificate
- Verify the certificate (SHM/HGB/lease deed) at the National Land Agency (BPN) — not from a photocopy.
- Confirm the registered owner is exactly who you're negotiating with.
- Check for encumbrances: mortgages, disputes, blocking notes.
- Match certificate boundaries against a fresh physical survey.
2. Zoning and permits
- Confirm the zone (ITR) allows your intended use — residential, rental, or hospitality.
- Verify building permits (PBG, formerly IMB) match what is actually built.
- Check the SLF (function-worthiness certificate) for completed buildings.
- For rentals: confirm tourism-licence eligibility in that zone.
3. The land itself
- Legal road access — registered, not informal goodwill.
- Water source and reliability; PDAM connection or well permits.
- Power capacity and connection status.
- Flood behaviour in rainy season; ask neighbours, not just the seller.
- Any temple, shrine, or customary (adat) considerations on or beside the land.
4. The contract
- For leases: extension option with price mechanism, inheritance clause, sublease/rental rights, early-termination protections.
- For freehold via PT PMA: company compliance, capital requirements, HGB timeline.
- Tax allocation between parties stated explicitly.
- Deposit held in escrow with a notary, never transferred informally.
5. The seller and the numbers
- Land and building tax (PBB) paid current.
- For operating villas: audited or bank-verifiable rental history, not screenshots.
- Inventory list, staff obligations, and management contracts reviewed.
- Independent valuation if the price sits far from comparable evidence.
None of this is exotic — it is simply thorough. The difference between a safe Bali purchase and a cautionary tale is rarely luck; it is whether someone did this work before the money moved. That someone is us. #Here4U
Frequently asked
- What due diligence is needed when buying property in Bali?
- Certificate verification at BPN, zoning (ITR) confirmation, building permit checks (PBG/SLF), physical survey, legal road access, water and power verification, contract review by independent counsel, and tax status checks — before any deposit moves.
