Buying Land in Bali :: 4 Tips You Need to Know When Purchasing Land in Bali

Buying Land in Bali :: 4 Tips You Need to Know

Buying Land in Bali :: 4 Tips You Need to Know

Category: Bali Property Tips,Bali Property | Posted on 26Feb 2018

With its friendly people, beautiful landscape and great weather, Bali is the place dreams are made of. That dream can just as easily escalate into a nightmare when you are ill prepared.  

When it comes to buying land in Bali, foreigners are at a distinct disadvantage when compared to the rights available to native citizens of the island.

Based on our experience, we have learned a number of important things that you should know before buying a land in Bali.

1. Understand the Ownership Structures in Indonesia

The key is in understanding Indonesian and local district-level land ownership rules and securing your investment. Land ownership regulations in Indonesia, may differ from your home country, as one important difference is that land rights are different for foreigners, Indonesian entities and Indonesian citizens.

Indonesia has stringent requirements in regards to acquiring property and a set of ownership titles for both locals and foreigners, which makes ownership possible for anyone.

You can read our guide to Indonesia Property Ownership Structures in this link.

2. Shop around and Inspect the Land

Seeing a lovely photo on a glossy-looking website can be inspiring but standing on the actual land and seeing for yourself (and meeting the seller) is always the best way to get a proper sense of the reality of the land you are buying into.

Often we see people who have bought cheap, basic land with no facilities or infrastructure. Comparing different sites early on will not only give you a better understanding of what is available in the area, but also help to make sense of variations in price and value between developments from the start, so you can avoid expensive mistakes in the future.

3. Land Security and Pre Due Diligence Checklist

It is very important that every land listing presented for sale has correct, complete and valid property documentation, agreements, paid taxes, vendors I.D and a signed listing agreement from the agency representing that property, to protect yourself when it comes to legal issues surrounding the title and potential land claims or encumbrances

Below are some questions we suggest you ask the seller when investigating different land options, to help you avoid potential problems down the track:

  • Can they provide proof of ownership?
  • Can they provide proof of irrevocable road access legal agreements?
  • Can they provide legal verification of land boundaries?
  • Have they secured building permits for the land?
  • Are there any known land disputes relating to the land they are selling?
  • Can they provide legally binding signed settlement statements from the original land owners stating that they have been paid in full for the land, to prevent future claims?
  • Do they offer a full guarantee on your title?

In the addition to the above, you can also check our article on pre-due diligence checklist on this link.

4. Get Advice from a Professional

There are certainly many stories about foreigners being duped on Indonesian land or property purchases, or investing in developments that never got off the ground.

However, if you do your homework correctly and ask the right questions from the start, all of these potential pitfalls are completely avoidable.

A qualified notary is a good place to start when you have any legal questions. Amongst other things, the notary conducts a “due diligence” which includes making sure that the property is accessible, free of any outstanding mortgage and that the property has a land certificate, building license and proof that several taxes have been paid.

A good notary will make the whole process easier. We have a few notaries that we can recommend which have proved to provide a good service.

We at Paradise Property Group Bali, are an acknowledged leading real estate firm with over 14 years experience. We are always ready to provide references from individuals, corporate clients, investors and developers located within Indonesia and abroad, whose investments we have structured and secured and who we continue to have a longstanding rapport with.

When it comes to buying property in Bali, there is no substitute for experience and a first-class reputation.

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