What is due diligence in Bali property transactions?

Due diligence is the legal and technical verification process carried out before buying property in Bali to ensure the asset is safe, legal, and free from disputes. It protects buyers from future legal problems and financial loss.

✅ What due diligence normally includes

  • Ownership verification
    Confirming the land certificate (Hak Milik/HGB/Hak Pakai/Lease) is valid and registered with the Land Office (BPN).

  • Seller identity check
    Ensuring the person or company selling the property is the legal and rightful owner or has power of attorney to sell.

  • Zoning check (ITR)
    Making sure the land is in the correct zone (tourism, residential, green belt, agricultural) and suitable for your intended use.

  • Building permits & compliance
    Verifying:

    • IMB/PBG

    • building registration

    • conformity of building with approved plans

  • Access road rights (right of way)
    Confirming the property has legal access, not just informal access across neighbor land.

  • Dispute and mortgage check
    Ensuring the land is not under court dispute, pledged as collateral, or subject to inheritance conflict.

  • Tax and payment status
    Verifying land and building tax (PBB) payments and seller’s tax obligations.

🛡️ Why due diligence is essential

Proper due diligence helps avoid:

  • fake or duplicate certificates

  • nominee arrangements problems

  • illegal zoning or unbuildable land

  • family inheritance disputes

  • demolition orders on unlicensed buildings

👨‍⚖️ Who performs due diligence in Bali?

Due diligence is normally handled by:

  • licensed Notary/PPAT

  • legal property consultants

  • professional surveyors if needed


✅ Simple definition

Due diligence = checking everything legally and technically before you buy to ensure the property is safe, legal, and problem-free.