Buying Property in Bali: Check These 7 Items First

7 Items to Check before Buying Property in Bali

  • InCorp Editorial Team
  • 22 April 2024
  • 5 minute reading time

Despite the shocking spike of Bali’s property price, the property market doesn’t seem to go down any time soon. This is why many investors are still eyeing at the lucrative real estate market in Bali. Continue reading this article to find out the 7 items to check before buying a property in Bali.

 Items to Check before Buying Property in Bali

Check These 7 Items before Buying Property in Bali

1. Location

One of the first things that many buyers would consider before buying a property in Bali is the location. Oftentimes, investors or home buyers seek locations that best suit their needs and preferences.

Once you have determined your perfect location, you shall start hunting for your property by surveying the property, surrounding areas, the type of development that is going on, as well as future development plans.

2. Size of Property and Land

There are many types of villas in Bali and each type of them has its unique market. Vacationers tend to rent smaller villas in town; holidaymakers who prefer urban attractions often opt for bigger villas.

If the size of your land allows, you may think of constructing at least two smaller villas on your property. However, each villa should be self-contained with its swimming pool, garden, and entrance. This construction model will provide you with maximum rental flexibility.

If you have much larger property, you can also use it to build a large destination villa that can be used for venues of functions such as weddings, birthdays, anniversaries, parties, and corporate events.

3. Accessibility

Tourists always rent property with accessibility as one of the top factors. Therefore, your purchased property shall have reasonable driving or walking distance to certain attractions or amenities such as restaurants, entertainment, shopping, and recreational areas.

Other than that, you should make sure that the road leading to your property is proper for cars and other types of vehicles – as most lanes in Bali are quite narrow to let cars pass.

4. Building Materials

Always get professional recommendations from a competent building surveyor for building materials. They will help you assess the integrity of the building structure, electrical systems, plumbing drainage, equipment, and pest infestation.

For an older building, you may need more detailed investigative surveys for the building structure with the help from your building surveyor.

5. Zoning Restrictions

There are certain zoning restrictions when you purchase a property in Bali. You must first make sure that the land your building is on is in the right zoning and you will be able to get the building permit (IMB).

For example, if the land is categorized as Green Belt, you are not permitted to construct a building on it. Always check with a legal consultant if you are unsure about the zoning restrictions.

6. Land Certificate

Check the information on your land certificate to confirm that your land matches the certificate. You should also check the location and boundary are the same as written on the land certificate.

You can check the land certificate and related purchase documents with a recognised notary.

7. Construction and Building Licenses and Taxes

A rental license or Pondok Wisata license is compulsory if you want to rent a property in Bali. If you want to buy an already operating rental villa, you must ensure that a relevant license is in place.

Besides, you have to make sure that the construction taxes or PPn have been settled and paid, regardless of if you purchase an existing building or build a property yourself. Contractors or developers are often responsible for paying construction taxes.

However, bureaucracy in Indonesia can make things complicated and you can find yourself not having paid the PPn eventually and unable to track down the developer or contractor afterward.

The Importance of Having a Notary Present

Having a notary present when you buy property in Bali is of utmost importance. A notary is a legal person who acts as an impartial witness for documents and contracts signing procedure. They are appointed by the government to deter fraudulent agreement activities.

In the process of selling and buying a property in Bali, a public notary and a land deed officer (PPAT) are mandatory to authorise the sales and purchase transactions and issue the land deed and the deed of sale.

How Cekindo can Assist

Buying property in Bali requires a seller and a buyer to be present at different phases of the transaction. A written agreement with verified signatures is also necessary.

At Cekindo, our notary will draft the transaction agreement on behalf of both parties. In Indonesia, it is a common practice that the notary is regarded legally as an intermediary for both the seller and the buyer.

Cekindo’s notary service for buying a property in Bali is a useful legal instrument to allow a transaction to be conducted securely to avoid future legal disputes. We are a firm that prides itself on delivering comprehensive notary solutions to foreign investors.

For further information, please feel free to contact one of our legal experts. Fill in the form below.

David Susandi

Branch Manager – Bali Office at InCorp Indonesia

Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia.

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