Notary Due Diligence in Bali – Secure Your Property Investment with The Bali Lawyer
Bali remains one of the most sought-after destinations for property investors, expatriates, and businesses looking to invest in land, villas, or commercial developments. While the opportunities are promising, real estate transactions in Bali carry legal complexities that can expose buyers to risk if not handled properly. One of the most crucial legal steps before signing any agreement is notary due diligence.
At The Bali Lawyer, we provide comprehensive notary due diligence services to help you make legally sound and secure property decisions. Whether you are purchasing a villa, leasing land, or entering a joint venture, proper due diligence conducted by a certified notary can protect you from fraud, disputes, and costly legal mistakes.
This page provides a complete guide to what notary due diligence involves in Bali, why it’s essential, and how our legal team ensures your investment is protected at every step of the transaction.
What Is Notary Due Diligence?
Notary due diligence refers to the legal process carried out by a licensed Indonesian notary (notaris) to verify that the property or land you intend to acquire is legally clear, transferable, and compliant with all applicable regulations.
This process includes a series of investigations, legal document reviews, and checks carried out before any transaction is finalized. In Indonesia, only certified notaries are authorized to validate land and property transactions, which makes their role essential to due diligence procedures.
Why Due Diligence Matters When Buying or Leasing Property in Bali
Due diligence is not just a formality—it is a critical safeguard for any foreign or local buyer. Bali’s property market has many attractive opportunities, but also includes risks such as:
Incomplete land certificates
Double-selling scams
Encumbrances or mortgages on land
Disputes between heirs
Improper land zoning
Unauthorized constructions
Invalid nominee agreements
Unregistered building permits
Failing to detect any of these issues can result in significant financial loss, legal battles, or cancellation of ownership rights. With notary due diligence, all legal risks can be assessed and addressed before any money is transferred or contracts are signed.
What Is Included in Notary Due Diligence?
At The Bali Lawyer, our notary due diligence process is thorough, transparent, and handled by experienced professionals who understand Indonesian property law and the concerns of foreign clients. The due diligence process typically includes:
1. Land Title Verification
We verify that the land or property has a legitimate and certified title issued by the Badan Pertanahan Nasional (BPN)– Indonesia’s National Land Agency. The notary checks whether the title is freehold (Hak Milik), leasehold (Hak Sewa), right to build (Hak Guna Bangunan), or right to use (Hak Pakai), and confirms whether it is eligible for the transaction intended.
2. Ownership and Authority Check
The notary ensures that the person selling or leasing the property is the legal owner and has the authority to transfer the rights. This prevents situations where unauthorized individuals attempt to sell or lease land they do not own.
3. Zoning and Land Use Regulation
We confirm that the property complies with local zoning regulations. Certain areas in Bali are designated for residential, commercial, agricultural, or tourism use, and building in the wrong zone can lead to penalties or demolition. Our notaries review spatial plans (RTRW) and local government maps to ensure compliance.
4. Dispute and Encumbrance Search
The notary conducts a search to confirm whether the land is free from legal disputes, debts, mortgages, or inheritance claims. This is critical to ensuring that your rights will not be challenged after the transaction is completed.
5. Permit and Building Compliance
If there is an existing building on the land, the notary will verify that it has a valid building permit (IMB or PBG) and that the structure complies with all regulatory requirements. Illegal or unregistered constructions can result in fines or loss of usage rights.
6. Tax Status Verification
We verify that all property taxes (PBB) and seller obligations have been paid. Unpaid taxes can delay or nullify the transaction, and may result in penalties.
7. Environmental and Access Check
Access to the land must be legal and not reliant on unregistered roads or neighboring landowners’ consent. Environmental considerations such as protected zones, river setbacks, and coastal restrictions are also reviewed.
Who Needs Notary Due Diligence in Bali?
If you are involved in any of the following scenarios, you need due diligence before proceeding:
Foreigners buying or leasing a villa, apartment, or land in Bali
Investors establishing a PT PMA to acquire commercial land
Individuals inheriting or gifting property in Bali
Business partners entering into joint ownership
Landlords renting property to foreign tenants
Developers purchasing multiple plots for construction
Buyers of second-hand properties or off-plan developments
Whether you are making a private or commercial transaction, conducting proper due diligence is the only way to ensure that your investment is legally protected.
How Long Does Notary Due Diligence Take?
The process duration depends on the complexity of the transaction and the availability of documents. Generally, full due diligence can take between 5 to 15 working days, assuming all relevant paperwork is accessible and there are no major legal issues.
Our team at The Bali Lawyer works efficiently to deliver timely results while maintaining thoroughness and accuracy in every step.
What Happens After Due Diligence?
Once the notary confirms that the property is legally clear, you can proceed with the transaction. The next steps include:
Drafting the Sale and Purchase Deed (Akte Jual Beli) or Lease Agreement
Signing the legal documents in the presence of the notary
Paying the required taxes and fees
Registering the transaction with the BPN
Updating the land certificate or lease records
We offer complete legal support for the entire process—from due diligence to notarization and final registration—ensuring your transaction is secure and properly documented.
Risks of Skipping Due Diligence in Bali
Skipping proper legal checks before buying or leasing property in Bali can result in:
Purchasing land with a fake or revoked certificate
Becoming involved in ongoing land disputes
Investing in land that cannot legally be developed
Losing your rights due to zoning violations
Being forced to demolish unregistered buildings
Inability to register your lease or property rights
Financial loss with no legal recovery options
These risks are avoidable with professional legal and notary due diligence, which is why we strongly recommend all clients—especially foreign nationals—never proceed without it.
Areas in Bali Where We Provide Due Diligence Services
We assist clients across the entire island, including but not limited to:
Seminyak
Canggu
Ubud
Denpasar
Sanur
Jimbaran
Uluwatu
Nusa Dua
Tabanan
Gianyar
Lovina
Singaraja
Amed
Sidemen
Whether your property is located in a bustling urban area or a remote hillside village, our legal and notary team is ready to assist you with on-site inspections and document reviews.
Why Choose The Bali Lawyer for Notary Due Diligence?
We are a Bali-based legal service with extensive experience in property law, foreign investment regulations, land certification, and real estate contracts. When you work with us, you receive:
A dedicated legal advisor who speaks fluent English and Bahasa Indonesia
Licensed notary partners with deep knowledge of local regulations
Full transparency in process and documentation
Customized legal solutions for your unique property goals
End-to-end support from initial inquiry to final transaction
Our team protects your interests, simplifies legal processes, and ensures that your property acquisition in Bali is smooth, compliant, and stress-free.
Buying or leasing land and property in Bali can be a rewarding investment—but only when it’s done legally and with proper verification. Notary due diligence is not just an option—it is a necessity. It ensures that your money is safe, your documents are valid, and your rights are protected for years to come.
Whether you’re buying a villa, setting up a business, or securing land for development, The Bali Lawyer is here to help you through every legal step.