3 Things to Know When Buying Real Estate in Bali

Source: inbali.org

Bali has been a popular real estate location for years now, the properties have been actively leased and leased for so long that new laws cropped up. As with any purchase, it’s important to know how to go about the actual process without entering some odd situations that could compromise our purchase. We will be looking into things you need to know when buying real estate in Bali.

1. There are two land titles in Indonesia

Source: realestate.com.au

As far as titles are concerned, we will have to be wary about two potential choices we’ll be offered. While one seems leagues better than the other, we’ll quickly see what may be found lacking for it.

The first title is called a freehold title. It is a title that signifies complete ownership of the land and anything on it. This is the title that completes the package and allows the holder to utilize the land without restrictions. Freehold is also referred to as Hak Milik, a detail that can be important when discussing the title of a property. There is only one issue with this title, it is only available to Indonesian people. A foreigner cannot acquire this title, even if they do it will be rendered void. In this case, the government will reclaim the land leaving us with no land to the title.

The second title may seem far less tempting due to limitations but it is one a property owner should strive for. This title is referred to as “Right of Use” title with the indigenous name of “Hak Pakai” for those who may encounter the term. This is a title one would get if they wish to make use of the land without wholesale owning it as a foreigner. The title is basically mandatory for any property operations you may have in mind and will lead to quick continuing of our current engagements. When we get this title, we also get a built-in extension of 25 years and the ability to renew it after 20 years. There are restrictions though. A “Right to Use” title has a limit on the size of land and doesn’t remove the necessity for the owner of the title to have valid permits that are required for staying in Indonesia.

There’s another title, this one completely commercial. It refers to the right to build on the property we’ve leased. It is required for Indonesian and foreign companies alike, covering any form of buying or selling that happens on the Indonesian soil.

2. Paperwork

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Once we decide on a title and find a property to own, we’ll be faced with quite a bit of paperwork. It is the main part of the legal concerns that float about the property ownership so it makes sense we’d eventually get there.

There are laws in Indonesia that require transparency of legal documents. Especially those tied to real estate. Another thing to keep in mind is that the transaction has to be paid in full. On top of that, Indonesian law does require some extra assurance when contracts are signed. It requires full supervision from an authorized officer to be considered legitimate. Make sure people you are signing the paperwork with are legitimate too or use approved ones like www.penidaland.com.

In conclusion, this means that every piece of paperwork has to be completely plain in writing, supervised, and paid. If you fail to follow any of these requirements, the deal will fall through. Remember, even a bit of payment not being paid can lead to this resolution.

3. Research and information are most important

Source: exotiqproperty.com

It’s good to take some time, a lot of time in fact, to research the land we aim to own. There are a lot of areas around Bali that can offer a great investment or a comfortable place to live in. there are also a ton of minor details that can often slip past us without ample care being put into their detection.

We should be looking out for the location in terms of factors. These factors include location, occupancy levels, cost of living, and other extra details. No matter whether this is a business venture or just a purchase for personal use, we will find ourselves in a much better spot by engaging with the intricacies laid about.

Local occupancy can affect the noise of the area as well as the quality of life. A crowded lot will rarely be a good purchase no matter whether we are trying to create an investment or a household. The concern of location stands in a similar vein, even in a place as beautiful as Bali there are spots that aren’t quite marketable or fitting to our desires.

Mind you, it’s never a given that a certain spot is less attractive but that still requires research from our end to figure out. Lastly, cost of living is rather important, knowing what expenses can be expected from a certain area is a property owning concern that affects any country across the globe. Make sure to inquire locals if possible, even if it’s just the real estate agents, get into a decent conversation with them and try to get some information through it. This could make a difference between great and mediocre purchases.

Inspecting the property and the papers that come with yourself is a good way to secure your purchase will be satisfactory. Without that extra precaution, it is quite easy to find yourself in a very odd position where the initial promises aren’t followed through, leading to bad sales.


Owning property in Bali is a bit troublesome nowadays with the extra laws introduced but by following them we can achieve quite a great investment. Knowing your titles, laws, and being careful with research is the most you can do to finally own a piece of land without as few caveats as possible.

There are quite a few concerns to take care of but these should put you in a place where the purchase conforms to our desires. With little luck, we’ll get the required documents and information quickly too.