Buying Land in Bali – 4 Things You Need To Know

buying land in bali

Bali, also named “Island of The Gods” with its friendly people, breath taking landscapes and healthy climate, Bali is the place dreams are made of. But this dreams can easily convert into a nightmare when you are not proper prepared.

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

We have learned a number of important things you should know before buying a land in Bali. Experiences we would like to share with you here.

1. Understand Ownership Regulations in Indonesia

Understanding Indonesian and local district-level land ownership rules is important to securing your investment. The land ownership regulations of Indonesia most likely differ to your home country. One important difference is that land rights are different for foreigners, Indonesian entities and Indonesian citizens.

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

2. Compare and inspect the Land

Don’t just trust lovely glossy nice edited photos on a website. These can be inspiring but visiting the actual land, standing on it by yourself and meeting the land owner will be always the best way to get a real sense of the reality of the land you are buying.

We see often people who have bought a probably cheap land but with no facilities and no infrastructures. Therefor is it important to compare different sites, see what is available in the area, to give you a better understanding the variations of price and value from beginning. So you can avoid expensive mistakes.

3. Pre Due Diligence Checklist

It is essential to check that every land presented to you for sale has a complete and valid property documentation. To avoid legal issues surrounding title, potential land claims etc. is it important to protect yourself. Check all the agreements, are all taxes paid, the sellers Identity and is a listing agreement between seller and the agency signed, which is representing that property.

We put you here below some questions we suggest you to ask the sellers while investigating different options. This will help you avoiding potential future problems.

  • Can the seller/agent provide proof of ownership?
  • Is there a guarantee for the land title?
  • Is there a proof of an irrevocable road access with legal agreements?
  • Are the land boundaries clear and do they a legal verification for it?
  • Has the land owner already building permits secured for the land?
  • Are there any known land disputes relating to the land they are selling?
  • Are there any claims on the land and can they provide legally binding signed settlement statements stating that they have been paid in full for the land to the eventual original land owner.

4. Get Professional Advice

Surely there are many stories about foreigners being victimized on Indonesian land or property purchases, or investing in developments that never got off the ground.

Nonetheless, if you ask the right questions from the start, do all your homework, all of these potential drawbacks can be completely avoided.

A good place to start with is to get answers for any legal questions from qualified notary. The notary conducts among other things a “due diligence” which includes making sure that the property is free of any outstanding mortgage, is accessible, 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 Bali Real Estate Consultants are an acknowledged real estate firm with over 10 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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