Do I Need a Notary for Buying Land or Property in Bali? A Complete Legal Guide by The Bali Lawyer

Bali continues to be one of the most attractive destinations for foreigners and investors looking to buy land or property, whether for personal use, retirement, business, or long-term investment. With the island’s beautiful landscapes, growing infrastructure, and vibrant tourism industry, many buyers are eager to secure a piece of paradise. However, before signing any agreements or transferring funds, one crucial question arises: Do I need a notary for buying land or property in Bali?

The simple answer is yes. In Indonesia, a licensed notary (notaris) plays a central legal role in every land or property transaction. Not only is their involvement legally required, but their role is also essential to ensure the transaction is valid, enforceable, and protected under Indonesian law.

At The Bali Lawyer, we offer complete legal and notary services to help you buy land or property in Bali with confidence and clarity. This comprehensive guide explains why a notary is required, what their duties are, how the process works, and how to protect your investment when purchasing real estate in Bali.

The Legal Role of a Notary in Bali Property Transactions

In Indonesia, a notary is a public official appointed by the government to draft, certify, and legalize certain legal documents. In the context of real estate, the notary is the only official authorized to create legally binding documents such as the Sale and Purchase Deed (Akte Jual Beli or AJB).

A notary is required for:

  • Drafting and certifying sale and purchase agreements

  • Conducting due diligence on land titles and ownership

  • Verifying that the transaction is lawful and fair to both parties

  • Registering the transaction with the National Land Office (Badan Pertanahan Nasional or BPN)

  • Ensuring that taxes and government fees are paid correctly

  • Providing legal certainty and protection to both the buyer and seller

Without a certified notary, the transaction is not legally valid, and you risk losing your investment or facing disputes.

Can Foreigners Legally Buy Property in Bali?

Foreigners are not allowed to own freehold land (Hak Milik) in Indonesia. However, there are legal structures that allow foreigners to control, lease, or use property for long periods, depending on the purpose of the purchase.

Here are three main legal methods used by foreigners:

1. Leasehold Agreement (Hak Sewa)

This allows a foreigner to lease property or land for a long term, typically 25–30 years, with options to extend. Lease agreements must be drafted by a notary to be legally enforceable.

2. Right to Use (Hak Pakai)

Foreigners with valid stay permits (KITAS or KITAP) can acquire a Hak Pakai title for residential use. This title can be valid for up to 80 years and must be processed through a notary.

3. Foreign-Owned Company (PT PMA)

If you are buying property for investment or commercial purposes, you can set up a PT PMA (foreign-owned company), which can hold land under Right to Build (Hak Guna Bangunan) or Right to Use. Notary involvement is essential for both the company formation and property acquisition.

At The Bali Lawyer, we help you choose the right ownership structure and handle all legal documentation, ensuring full compliance with Indonesian regulations.

Step-by-Step Process for Buying Property with a Notary in Bali

Step 1: Legal Consultation

Before signing any agreement or paying a deposit, you should consult a legal expert to understand your rights and the most suitable ownership structure. We at The Bali Lawyer will advise you based on your nationality, residency status, and intended use of the property.

Step 2: Due Diligence and Title Search

The notary will verify the land certificate to ensure:

  • The seller is the rightful owner

  • There are no outstanding taxes or debts

  • The land is not under dispute or inheritance claims

  • The zoning regulations allow for your intended use

  • The property has the necessary permits (such as IMB or PBG)

This step is essential to avoid legal problems later.

Step 3: Agreement Drafting

The notary drafts the Sale and Purchase Agreement (AJB) or Lease Agreement, depending on the transaction type. These documents outline the terms, payment schedule, rights, and obligations of both parties.

Documents are usually drafted in Bahasa Indonesia, but our legal team at The Bali Lawyer provides bilingual translations and clear explanations in English for foreign clients.

Step 4: Signing and Payment

Both parties meet at the notary’s office to sign the documents. The buyer typically makes the final payment on the signing day. If the buyer or seller cannot be present, a Power of Attorney can be issued and notarized in advance.

Step 5: Tax and Fee Settlement

The notary will calculate and collect the applicable taxes and fees, such as:

  • Income Tax (PPh) – paid by the seller

  • Land and Building Acquisition Duty (BPHTB) – paid by the buyer

  • Notary service fees

  • Administrative and registration fees

Step 6: Registration with the National Land Office

The notary submits the documents to the BPN to update the land certificate and officially register the transaction. This step completes the legal process and secures your rights as a leaseholder or property user.

What Happens If You Don’t Use a Notary?

Attempting to purchase property in Bali without involving a notary is illegal and highly risky. Without a notary:

  • Your agreement is not recognized by the government

  • You cannot register the transaction with BPN

  • You cannot obtain a legal land certificate in your name or company

  • You risk fraud, double selling, or disputes

  • You may lose your investment without legal protection

Always work with a licensed notary and legal advisor to avoid these risks.

 

Additional Legal Documents That Require a Notary

Depending on the transaction, the following documents may also need notarization:

  • Power of Attorney – if you are appointing someone to act on your behalf

  • Prenuptial Agreement – required for mixed-nationality couples purchasing property

  • Company Deed of Establishment – for property purchased through a PT PMA

  • Wills or Inheritance Declarations – if the property is part of estate planning

We offer comprehensive notary and legal support for all related documents.

Areas We Serve in Bali

Our notary and legal services are available across the island, including:

  • Seminyak

  • Canggu

  • Ubud

  • Denpasar

  • Sanur

  • Jimbaran

  • Nusa Dua

  • Tabanan

  • Gianyar

  • Lovina and North Bali

If you are overseas or unable to visit a notary in person, we also provide remote services where legally applicable, including mobile notary coordination and power of attorney drafting.

Why Choose The Bali Lawyer?

At The Bali Lawyer, we specialize in assisting foreign buyers and investors in Bali with secure, legal property transactions. Our strengths include:

  • English-speaking legal team

  • Certified and experienced notary partners

  • Personalized legal consultation

  • Full assistance with due diligence, drafting, and registration

  • Transparent and fixed-fee services

  • Experience with foreigners, expats, and PT PMA investors

We make buying land or property in Bali safe, easy, and fully compliant with the law.

Final Advice Before You Buy

  • Never sign or pay for anything without legal advice

  • Always use a certified notary for property transactions

  • Avoid nominee schemes—they are illegal and carry high risk

  • Make sure the land has a valid certificate and correct zoning

  • Work with trusted professionals who understand both Indonesian law and foreign client needs

CONTACT US FOR DETAIL INFORMATION +62 878-6407-7650