How to Verify Property Ownership in Bali: The Complete 2025 Legal Guide by The Bali Lawyer
Buying property in Bali can be one of the most rewarding investments for foreigners and locals alike. The island’s natural beauty, vibrant culture, and thriving tourism market make it a highly desirable destination for real estate investment. However, with the growing demand for villas, land, and commercial spaces, property fraud and unclear ownership issues have also become more common.
That is why understanding how to verify property ownership in Bali before purchasing or leasing is absolutely essential. Failing to verify the property’s legal status can result in financial losses, ownership disputes, or even the cancellation of your rights to the property.
At The Bali Lawyer, a trusted law service based in Bali, we specialize in guiding clients through every step of the property verification process. In this comprehensive guide, we’ll explain how to check ownership status, verify legal documents, and ensure your investment in Bali is safe and legitimate.
Understanding the Importance of Property Verification
Before you sign any agreement or transfer funds, it’s critical to ensure that the property’s ownership is legally recognized by Indonesia’s National Land Agency (Badan Pertanahan Nasional or BPN). Many buyers, particularly foreigners, assume that because a property looks legitimate or has a title, it is safe to buy — but that’s not always the case.
Verifying property ownership helps you:
Confirm the rightful owner of the land or building
Ensure there are no disputes or encumbrances on the property
Verify that the property complies with zoning and building regulations
Avoid fraudulent transactions or fake certificates
Secure your investment under Indonesian law
By conducting thorough legal due diligence, you protect yourself from scams, illegal sales, or properties with unclear land titles.
The Legal Framework for Property Ownership in Bali
Property ownership in Bali is governed by Indonesia’s Basic Agrarian Law (UUPA) of 1960, which defines different land ownership types, including:
Hak Milik (Freehold Ownership) – Only for Indonesian citizens
Hak Pakai (Right to Use) – Available for foreign residents and investors
Hak Guna Bangunan (Right to Build) – Usually held by a company, including PT PMA (foreign-owned company)
Hak Sewa (Leasehold Rights) – Allows foreigners to lease property for long periods
Each type of land title carries different ownership rules, documentation requirements, and verification methods. Therefore, identifying the land type is the first step in the verification process.
Step-by-Step Process to Verify Property Ownership in Bali
1. Identify the Type of Land Title
Before proceeding, determine the type of land title held by the property. This can usually be found on the certificate itself. Titles in Indonesia are typically labeled as:
Sertifikat Hak Milik (SHM) – Certificate of Ownership
Sertifikat Hak Guna Bangunan (SHGB) – Right to Build Certificate
Sertifikat Hak Pakai (SHP) – Right to Use Certificate
Each title will outline the ownership rights, duration, and conditions of the property. Verifying that the certificate type matches your ownership goals is crucial.
2. Check the Certificate with the National Land Agency (BPN)
The BPN (Badan Pertanahan Nasional) is the official government body responsible for managing land registration in Indonesia. To verify the authenticity of the land certificate, a formal check can be done through this agency.
A BPN verification can confirm:
The official owner of the property
The land’s exact location and boundaries
Whether the land is subject to disputes or mortgages
Whether it has been properly registered in the national land database
The Bali Lawyer assists clients in conducting these BPN checks to ensure that the certificate presented by the seller is genuine and legally registered.
3. Confirm the Seller’s Identity and Ownership Rights
It’s essential to confirm that the person or entity selling the property is the actual registered owner. You can verify this by comparing the name on the land certificate with the seller’s KTP (Indonesian ID) or company registration documents if the property is owned by a legal entity.
Red flags may include:
Mismatched names between certificate and ID
Owners claiming to sell on behalf of others without a valid Power of Attorney
Certificates that have not been updated after inheritance or transfer
A proper background check prevents fraudulent transfers and ensures that you are dealing with the legitimate owner.
4. Verify Land Boundaries and Size
Disputes often arise from unclear land boundaries. Before purchasing, the property’s physical boundaries must match the measurements listed in the certificate.
A licensed surveyor can conduct a land measurement to verify:
The exact land size and dimensions
Boundary markers (patok) on-site
Any overlap with neighboring plots
This survey will confirm whether the property matches official records and that there are no overlapping ownership claims.
5. Review Zoning and Land Use Regulations
Every property in Bali falls under a specific zoning classification defined by the local government. Zoning determines what activities are legally allowed on the land—residential, commercial, agricultural, or tourism.
Before making any investment, check:
Whether the property is in a residential, commercial, or tourism zone
Whether it is eligible for building permits (IMB or PBG)
If the land can legally accommodate your intended use (e.g., villa, resort, business)
The Bali Lawyer provides legal zoning verification services to ensure your property aligns with the regional spatial plan and building regulations.
6. Check for Encumbrances or Liens
Land in Bali may be subject to mortgages, liens, or disputes that limit the owner’s ability to sell. To avoid hidden obligations, request an Encumbrance Record (Surat Keterangan Pendaftaran Tanah or SKPT) from BPN.
This document will reveal if the property:
Is mortgaged or used as collateral
Is part of an ongoing ownership dispute
Has legal restrictions on transfer
Our team at The Bali Lawyer helps clients verify all encumbrances to ensure the property is free from third-party claims before signing any agreement.
7. Verify Building Permits and Certificates
If you are buying land with an existing structure, always verify that the building has proper permits and certificates. Required documents include:
IMB (Izin Mendirikan Bangunan) or PBG (Building Approval)
SLF (Certificate of Building Worthiness)
Compliance with environmental and safety standards
Lack of proper permits can lead to fines or even demolition orders. Our legal team ensures that all building permits are in order before any transaction is completed.
8. Conduct a Title Search and Legal Due Diligence
A legal due diligence report is one of the most important steps before acquiring property in Bali. This process includes:
Verifying land ownership and legal standing
Checking for disputes or legal proceedings involving the land
Reviewing zoning, building, and tax compliance
Ensuring there are no overlapping rights or double certificates
The Bali Lawyer conducts in-depth due diligence to provide you with a comprehensive legal report before any purchase or lease agreement is signed.
Common Risks of Not Verifying Property Ownership
Failure to verify property ownership in Bali can lead to serious legal and financial problems, such as:
Purchasing property from someone who is not the real owner
Investing in land with unclear or fake certificates
Buying property involved in land disputes
Violating zoning laws or building restrictions
Facing property confiscation or legal penalties
These risks highlight why professional legal verification is not just recommended—it is necessary.
How The Bali Lawyer Can Help
At The Bali Lawyer, we provide full legal support for foreigners and Indonesians who wish to buy, lease, or invest in Bali property. Our services include:
Verifying ownership documents through BPN and local authorities
Conducting complete legal due diligence
Checking land certificates, boundaries, and encumbrances
Reviewing zoning regulations and building permits
Drafting and notarizing legal agreements
Our experienced legal consultants understand the complexities of Indonesian property law and ensure every transaction is legally compliant and secure.
9. How Foreigners Can Verify Property Ownership
For foreign investors, verifying property ownership in Bali involves additional steps to ensure compliance with Indonesian regulations. If you are acquiring property through:
Leasehold (Hak Sewa)
Right to Use (Hak Pakai)
Foreign-owned company (PT PMA)
You must ensure all agreements and company documents are valid, properly registered, and consistent with Indonesian investment laws.
The Bali Lawyer provides tailored legal solutions for foreign investors, guiding you through every step of the verification and acquisition process.
10. The Role of a Notary in Property Verification
In Indonesia, property transactions must be completed through a licensed notary (PPAT) who is responsible for verifying and recording land transfers. The notary ensures that all documents are legitimate and submitted to BPN for registration.
At The Bali Lawyer, we work closely with trusted notaries across Bali to handle all legal documentation and registration, ensuring a smooth and lawful transfer of ownership.
Secure Your Investment with The Bali Lawyer
Bali’s real estate market offers incredible opportunities for both investors and homeowners, but only when the legal foundation is solid. Verifying property ownership is the most crucial step in ensuring that your investment is secure, legitimate, and fully compliant with Indonesian law.
Whether you are a foreign investor, developer, or individual buyer, The Bali Lawyer provides professional assistance in property verification, due diligence, and legal compliance. Our experienced team handles all the complexities so you can invest in Bali with peace of mind.
Contact The Bali Lawyer
If you plan to buy or lease property in Bali, contact The Bali Lawyer today for expert legal guidance. We will help you verify ownership, check land titles, and handle all legal documentation to ensure your investment is completely secure.
The Bali Lawyer
Your trusted partner for legal, property, and business matters in Bali.