Protecting Your Investment in Bali
Bali's booming property market has attracted not just legitimate developers, but also fraudsters. AREBI (Indonesia's Real Estate Agents Association) recorded over 180 formal complaints related to property fraud in Bali during 2024 alone — a 30% increase since 2021.
The 10-Point Due Diligence Checklist
1. Verify Land Ownership (SHM Certificate) Always request a copy of the Sertifikat Hak Milik (SHM) — the freehold title certificate. Verify it at the local BPN (National Land Agency) office. This costs around IDR 50,000 and takes 1–2 days.
2. Check the Seller's Identity Match the name on the SHM to the seller's KTP (national ID). If they're different, demand a notarized power of attorney.
3. Confirm Zoning (RTRW) Request an IPPT (land use permit) to confirm the land is zoned for your intended use. Building a villa on agricultural green zone land is illegal and cannot be retroactively permitted.
4. Inspect the Land Physically Visit the exact plot. Check boundaries with GPS coordinates. Verify there are no existing structures, squatters, or access disputes.
5. Use a Reputable Notary (PPAT) Never use the seller's notary exclusively. Appoint your own independent PPAT (land deed official) to review all documents.
6. Verify Building Permits (PBG) If buying a completed property, confirm it has a valid PBG (Persetujuan Bangunan Gedung). Without this, the building is technically illegal and could face demolition orders.
7. Check for Liens and Encumbrances Your notary should verify the land is free of mortgages, liens, or legal disputes at the BPN office.
8. Research the Developer For off-plan purchases, investigate the developer thoroughly:
9. Use Escrow for Payments Never transfer large sums directly to a developer's personal account. Use a notary-held escrow account or a third-party escrow service. Release payments only upon verified completion of construction milestones.
10. Get Everything in Writing Every promise — completion date, specifications, materials, warranties — must be in the written contract. Verbal agreements have no legal standing in Indonesia.
Red Flags to Watch For
What To Do If You've Been Scammed
Our Approach at Savira
We build transparency into every project: milestone-based payment schedules, CCTV construction monitoring, full permit compliance, and open communication. Every client has direct access to their project status, documents, and payment history through our client portal.