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Land Due Diligence in Bali: 9 Checks Before the Deposit

Clifftop plot above the ocean

Deposits in Bali are normally non-refundable. Sign a preliminary agreement, pay 10%, and if the deal collapses on your side the money stays with the seller. So the checks happen before, not after.

Why it happens before the deposit

The seller's logic is reasonable: they take the property off the market and wait. The buyer's logic should be equally firm — until the plot is proven clean and buildable, no money moves. If a seller will not release documents for review before the deposit, that is your answer.

1. Certificate and chain of title

We examine the original certificate, the type of right and the history of transfers. We confirm the owner's details match their identity document, that we are not dealing with an undivided inheritance, and that the plot is not being sold in parallel to someone else. Authenticity is verified at the land office — not from a photograph in a messaging app.

2. Zoning

The decisive check. Spatial plans determine what a plot may become: housing, tourism, agriculture, or nothing at all. A green zone is a prohibition, not a guideline, and there is no way around it.

Height limits and site coverage are checked separately: even in a permitted zone, local rules may cap what you can build.

3. Boundaries and area

We commission a surveyor to peg the boundaries and compare actual area against the certificate. Discrepancies of five to ten per cent are common, and you are paying by the are. The same exercise reveals whether a neighbour's fence, outbuilding or footpath to a temple crosses the plot.

4. Access

Not "is there a road" but is there a legal right of way. Is the road public, or does it cross private land? If private, is there a registered easement? We also measure the width: a concrete truck that cannot reach the site makes construction immediately more expensive.

5. Water and power

Mains water is far from universal. Where there is none, we establish how deep neighbouring boreholes run and what one actually costs — on the Bukit this can be a significant line in the budget. For electricity we check available capacity: a villa with air conditioning, a pool and a full kitchen needs considerably more than a standard connection.

6. Encumbrances and disputes

We pull the land office record to confirm there is no mortgage, seizure or live dispute. Separately, we check whether the plot is already under a long lease to a third party — such an agreement survives a change of owner.

7. Building permits

Any existing structure must be permitted. A house without a valid permit means exposure to fines and demolition orders, and it cannot obtain an accommodation licence.

On an empty plot we assess whether a permit is realistically obtainable for your design: plot shape, setbacks, distance to the shoreline and to temples.

8. The village and customary law

Alongside state law, Balinese customary law applies through the local community. A village may have its own requirements on the appearance of buildings, annual contributions, restrictions on events, and on working during religious festivals.

We also confirm ceremonial routes and proximity to temples: a plot can be legally clean and still be a poor place to build.

9. The seller

We verify authority: if a representative is acting, the power of attorney and its validity. If the owner is married, spousal consent. If there are co-owners, each of them present or notarised. And we confirm the seller intends to transact officially, rather than "part on paper, part in cash".

Red flags. A deposit requested before documents are shared. Refusal to give the certificate number. Pressure — "there is another buyer, decide today". A suggestion to understate the price in the deed. None of these is a reason to be a little more careful; each is a reason to leave.

What it costs and how long it takes

A full review takes one to three weeks and costs materially less than a single forfeited deposit. It covers legal work, official searches, a surveyor's visit and a written conclusion with a direct answer: buy or do not.

We run this on every property in a shortlist — before we show it to a client.

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