Bali A List

Checklist for buying a freehold Villa in Bali

E-mail Print PDF

Appoint a Real Estate Agent you trust. (Bali A List, of course)

“ With your Agent (us) appoint a top Notaris.

If you don’t want to do the above and decide to do it yourself, make sure you check all the boxes


“ Walk around the property and check all the corners.

“ Get a copy of the Sertipikat (title)

“ Find somebody educated and reliable who can translate all the documents for you.

“ Check that the person who claims to be owner’s name is on the title.

“ Check the owner’s KTP (ID card) to make sure it matches with name on title and that the

owner is not deceased.

“ Check that they are the real owner and not a nominee for a foreign owner.

“ If they are a nominee, try to contact the principal to check the asking price. Many

middlemen mark up the price, sometimes outrageously.

“ Check that the villa has an IMB plate (Like a car number plate displayed on the front outside

wall. This is proof the building has a proper building license. If it doesn’t have one, don’t buy


“ Check electrical capacity. 4400KVa is probably the absolute minimum if you are going to run

aircons in every room.

“ Conduct a rudimentary check of the wiring, pool pump, water pressure etc.

“ Check for rising damp.

“ If thatched roof, check age of roof. (generally a thatched roof will last a maximum of 16


“ Check for rising damp and leaks in general.

“ Check whether the water is government supply or from a well (well is generally preferable).

“ Check with the land department (BPN) to make sure the land is not in the path of a

proposed expressway, etc.

“ Check that the land has proper access, either public road or freehold right-of-way.

“ Don’t take anybody’s word for anything.

“ Once you have decided to buy, do not give the owner any money directly.

“ Now find a top-class Notaris with the initials PPAT after their name (which means they are

authorized to enact property title transfers). One who can give you accurate translations

of documents, as well.

“ As a general rule, do not use the seller’s notaris. Do not give the seller’s notaris any

deposit money.

“ Discuss the land with your Notaris and give them a copy of the Sertipikat. At this point

discuss whether you want to convert the title to Right of Use (Hak Pakai) or whether

you want to appoint a nominee, in which case the Notaris will also have to prepare the

documents you need to protect your interest in the land.

all the conditions you have agreed with the owner.

“ Ask the Notaris (or you Agent) to draw up a draft Sale and Purchase Agreement, containing

“ Make sure a building inspection is part of the conditions.

“ Insist on an inventory of the contents.

“ Arrange for the owner to sign the agreed final Sale and purchase Agreement with you,

“ Pay to the Notaris the 10% deposit to be held in escrow until the Notaris has completed due

“ Do not pay the deposit to the owner, under any circumstances.

“ Complete the sale in front of the Notaris, with the seller and your new nominee.

“ At the same time, pay the other 90% owed for the purchase.

“ Complete all the encircling documents with your Nominee.

“ Pay the agreed Nominee’s fee.

“ Later, when the documents are ratified, pay your Purchase Tax (5% )and the Notaris fee

What a rigamarole! Much easier just to do steps 1 and 2 and let us look after the rest. And remember,

if we don’t have the villa you want in our listings, we will find it for you. We work for you for free. The

seller pays our commission. Remember, you are in a foreign land. Things are much different here.

witnessed by the Notaris or the Agent.

diligence using the original documents (proof of ownership, etc).



Bali Property Newsletter


You are here: Home Blog Checklist for buying a freehold Villa in Bali