Title and land information
Start by understanding what legal right exists over the land and who is recorded as the relevant holder. The review may include certificate or title information, parcel location, boundaries, encumbrance information and consistency between the documents presented by the seller and available official records. The appropriate checks depend on the type of right and transaction.
For a lease, the underlying title still matters because the person granting the lease must have the authority to do so. A long lease should not be treated as safe merely because the contract term is attractive.
Identity, authority and company documents
Confirm who is signing and why they have authority to bind the seller, lessor, buyer or company. Where a company is involved, review the relevant corporate documents and authority of the signatories. Powers of attorney, board or shareholder approvals, marital documents or other authorisations may also be relevant depending on the parties.
Foreign clients should be particularly careful when the transaction is being managed by an intermediary. Know who the legal counterparty is, who will receive funds, and which document creates the obligation you are relying on.
Contracts, payment milestones and conditions
Due diligence should be connected to the contract. If important checks are not complete, the agreement should address what happens if the result is unsatisfactory. Review deposit terms, refund rights, deadlines, conditions precedent, representations, default consequences and the documents that must be delivered before later payments are due.
Avoid relying on verbal assurances for points that materially affect the transaction. If a permit, access right, extension, renewal or third-party consent is essential, the contract should deal with it clearly rather than leaving it as an informal promise.
Building, use and operational questions
For villas, hotels, restaurants or other commercial property, the land document is only one part of the picture. The intended use may raise questions about building approvals, business licensing, zoning, access, utilities, operating entities or other regulatory matters. The scope of a notary or PPAT engagement should state which of these items are being checked and which require other advisers.
If the business model depends on short-term rental or another regulated activity, assess that separately. A legal right to occupy a property does not automatically mean every proposed commercial use is permitted.
Turn findings into decisions
A due-diligence report or discussion is useful only if the findings are translated into action. Some issues can be resolved by obtaining missing documents. Others may require a contract condition, a price adjustment, a different structure, specialist advice, or a decision not to proceed.
Ask for the unresolved points to be listed clearly. This creates a practical checklist for the buyer and the professional team and prevents important questions from disappearing in a long email thread before signing.
FREQUENTLY ASKED QUESTIONS
Questions clients often ask
What does property due diligence in Bali include?
The scope varies, but commonly covers title or land information, identity and authority, contracts, company documents where relevant, and other records connected to the proposed transaction. The agreed scope should be confirmed in writing.
Is due diligence only for property purchases?
No. Long leases, villa investments, commercial property and company-linked property transactions can also benefit from legal and document review before commitment.
Does due diligence guarantee there will be no future problem?
No. Due diligence reduces uncertainty by checking available information and identifying risks, but it cannot guarantee future events or facts that were unavailable, inaccurate or outside the agreed scope.
When should due diligence start?
As early as possible, ideally before a large non-refundable payment or final contract. Early review gives the parties time to resolve missing information or adjust the transaction.
This page provides general information only. It does not replace advice on the facts of a specific matter, and legal, tax, immigration, licensing or other requirements may change.