Due Diligence
Bali Property Due Diligence Checklist
The 8 documents you must verify before buying any property in Bali. This checklist is required by Indonesian notaries for completion.
Why This Matters
At Horizon Bali Property, we refuse to list any property without a complete document package. This isn't optional — Indonesian notaries require these documents for legal completion. Properties without proper documentation are the #1 source of disputes and losses for foreign buyers.
The 8-Point Document Checklist
SHM — Sertifikat Hak Milik (Land Certificate)
The freehold land certificate issued by BPN (National Land Agency). You need a colour scan of ALL pages — not just the cover. This proves the land is legally registered and identifies the true owner.
What to check: owner name matches seller, no encumbrances noted, certificate number matches BPN records
Lease Agreement — Akta Sewa Menyewa
For leasehold properties: the full lease agreement including Master Lease and all sublease agreements. Must be notarised. Check duration, extension terms, and any restrictions on use or transfer.
What to check: lease duration and start date, extension clauses, transfer/assignment rights, termination conditions
PBB — Pajak Bumi dan Bangunan (Land & Building Tax)
Receipt proving the annual land and building tax has been paid for the current year. Unpaid PBB can create complications during transfer and may indicate the property has ownership issues.
What to check: paid for current year, property details match SHM, no outstanding arrears
KTP — Owner's Indonesian ID
Copy of the landowner's (landlord's) KTP (Kartu Tanda Penduduk). This confirms the person signing the lease or sale agreement is the actual owner as registered on the SHM.
What to check: name matches SHM, KTP is valid (not expired), address is consistent
Passport — Lessor/Seller's Passport
Copy of the passport of the person leasing or selling the property. For Indonesian citizens, this supplements the KTP. For foreign lessors, this is the primary ID.
Company Documents (if PT owned)
If the property is held by a company (PT), you need: Akta Pendirian Perusahaan (Articles of Association), SK-Kemenkumham (Ministry approval), and NIB (Business Registration Number).
What to check: company is active, authorised signatories, no pending disputes
PBG/IMB — Building Permit
Building permit for any structures on the land. Before 2018 this was AMB/IMB; after 2018 it's PBG (Persetujuan Bangunan Gedung) with SLF (Sertifikat Laik Fungsi). Building without a permit is now strictly enforced — "build first, permit later" no longer works.
What to check: permit covers actual building, matches current regulations, SLF issued if post-2018
ITR — Zoning Information
Information about the zoning designation of the land plot. This determines what can be built and what activities are permitted. Critical for investment properties — you need to confirm the land is zoned for your intended use (residential, tourism, commercial).
What to check: zoning matches intended use, no planned government projects (road widening, etc.)
Additional Documents for Investment Properties
- Pondok Wisata licence — Required if you plan to rent the property on Airbnb or similar platforms
- Project documentation — For new builds: building permit must be obtained before construction begins
- Company + KTP — If the property is held by a company: full company documents plus owner's KTP
Professional Due Diligence Service
Our legal partner, Sky Realty Bali Legal Department, provides professional due diligence covering all 8 points plus additional checks:
Related Guides
Get Your Due Diligence Done Right
Every property we list passes this 8-point check. Contact us to verify any property you're considering.
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