Due Diligence to Conduct before Buying Land in Bali

Before purchasing land in Bali, or anywhere else in Indonesia, it is crucial to conduct land due diligence. This ensures that the land seller is the legal owner with sole selling rights. Here's why it's important.

Bali has long attracted foreigners looking to buy land and settle in Indonesia. However, buying land in Bali involves certain legal risks. Unexpected issues can arise, potentially turning your dream of acquiring land in Bali into a challenging experience.

Foreigners often face common problems when buying land in Bali, such as land use restrictions, eviction issues, questions about legal ownership, and hidden fees.

This article outlines the key aspects you need to verify during due diligence before finalizing a land acquisition in Bali.

BUYING LAND IN BALI, WHAT TO VALIDATE

1. Rightful Owner with Valid Certificate

First, ensure that the seller is the legitimate landowner.

Verify their authenticity by requesting the updated and valid land certificate or by checking inheritance documents.

2. Tax Payments

A critical aspect of land acquisition in Bali is confirming that the previous owner has settled their land taxes before completing the transaction.

Unpaid taxes prevent you from applying for a building permit until they are resolved.

3. Zoning Verification

Bali’s zoning regulations prohibit commercial activities in certain areas. If your land is zoned incorrectly for your business, it may be unusable.

4. Building Permit

If there is a building on the land, ensure you have the building permit (IMB). The building’s classification and function must comply with Bali’s zoning laws to avoid legal issues.

Buildings that fail to meet zoning requirements or lack an IMB may be demolished by the government.

5. Land Infrastructure and Land Border

Confirm the land’s actual size and check for overlapping property boundaries during due diligence. This ensures the integrity of your land transaction. Even minor overlaps can lead to disputes between landowners and neighbors.

Additionally, expats should verify the legality of access roads, as some may be privately or publicly owned by the local community, affecting the property's value.

6. Limited Property Access

In Bali, foreigners purchasing a villa often receive usage permission for road access from the previous landowner. foreigner’s purchased villa.

However, the landowner may later demand fees for road access, leading to disputes and costly legal battles. Foreigners should be aware that "free" road access may not truly be free.

DUE DILIGENCE WITH Indo-Terra

Understanding your land acquisitions in Bali is essential. BuildBali provides quality due diligence to help you assess land value and potential issues, giving you confidence in closing a deal.

As a leading land due diligence service provider in Indonesia, BuildBali’s team of highly-trained examiners offers detailed analysis of all relevant aspects of land transactions and ownership. Let our experienced team assist you in purchasing your prospective land in Bali before making a major investment.

e commitment.