Purchase Process

The secure land investment process in Bali generally follows these steps:

1. Letter of Intent (LOI): Buyer and seller agree on basic terms and confirm interest in writing, usually a first deposit of 10% is required.

2. Due Diligence: A notary/PPAT checks ownership, land certificate, permits, and possible disputes, encumbrances, standard Due Diligence items might include but not be limited too:

• The zoning of the Land based on urban planning information of such land and building is located in the buildable zone (minimum residential zone).

• Tax on the land and building.

• Legality of the land certificate.

• Whether or not there is a claim of the land ownership from third party

• Whether or not there is no encumbrance, blockage, debt, mortgage on the land.

• The access to the electricity, water and internet networking on the land vicinity.

• Ability to obtain building(s) permit (IMB).

• Regulation from local neighbourhood and Village.

• Government public work(s) (including the road project either province, regency national scale) on the land or within radius of 500 M2 (five hundred meters) from the land.

• Interference from local place of worship, that may obstructed the Second Party aim and purpose to lease such land.

3. A potential preliminary sales agreement (PPJB): A binding purchase agreement is drafted and signed.

4. Payment: Either via escrow account or directly to the seller in stages or full settlement, based on the agreement between both parties.

5. Upon Payment: At the notary/PPAT, the property rights; leasehold (Hak Sewa), freehold (Hak Milik / Hak Pakai / HGB) are officially transferred and registered.

What documents are required for a purchase?

1. Leasehold Agreement and/or Land Certificate (Hak Milik / Hak Pakai / HGB / Salinan Hak Sewa)

2. KTP (Identity Landlord)

3. Kartu Keluarga (Family Tree Landlord)

4. Building permit (PBG/IMB) or Registration.

5. Sertificat Laik Fungi (SLF / Building Construction Worthiness Certificate) or Registration.

6. Tax numbers (NPWP) of the parties.

7. For foreigners: Salinan Hak Sewa (leasehold contract) and passports.

8. or PT PMA structure, company registration documents, director(s) passport(s).

Can foreigners buy property in Bali?

1. Leasehold: Yes, straightforward and legal.

2. Freehold (Hak Milik): No, only Indonesian citizens.

3. Through PT PMA: Foreigners can obtain Hak Guna Bangunan (HGB) rights.

4. With Kitas: Foreigners can obtain Hak Pakai rights (1 House for residential purpose / additional laws apply)