Due Diligence

How to Vet a Bali Property Developer

Last updated 18 August 2026

A polished website and confident sales team tell you nothing about whether a developer can deliver what's promised. Everything below should be checked independently — using sources the developer doesn't control — before you sign anything or transfer a deposit.

1. 1. Verify the company registration

   Confirm the legal entity (typically a PT PMA for foreign-linked developers) is actually registered and matches the name in your contract, using Indonesia's OSS (Online Single Submission) system or a local lawyer, not just the "About Us" page.

2. 2. Verify the land certificate independently

   Have a notaris (PPAT) not engaged by the developer check the land certificate for the exact plot — its status (HGB, Hak Pakai, leasehold, or adat/customary land), and whether it's free of disputes or existing encumbrances.

3. 3. Confirm the building permit matches the project

   A building permit (PBG, formerly IMB) needs to match the specific plot and structure being marketed to you — not a general company permit or one issued for a different, already-completed project.

4. 4. Ask for a genuine, independently verifiable track record

   Ask for previous completed projects and try to verify actual (not promised) occupancy and rental performance directly with existing owners or independent booking platforms — not just figures supplied by the developer's own sales material.

5. 5. Check exactly where your money goes

   Funds should go to the company's corporate account or a proper escrow arrangement, staged against verified construction milestones — never to an individual's personal account, regardless of their seniority or how trustworthy they seem.

6. 6. Get every promise in writing

   Verbal assurances from a sales agent are not enforceable. If a return, an extension option, or a completion date is promised, it needs to be in the contract, in a language and legal system you and your own lawyer actually understand.

7. 7. Search beyond the developer's own website

   Look for independent commentary in expat forums, local Facebook groups, and Google reviews — and where possible, contact existing buyers directly rather than relying on testimonials curated by the developer.

8. 8. Understand your exit and resale rights

   Confirm upfront whether your leasehold or ownership stake can be sold, sublet, or transferred, and what fees or approvals apply — don't assume standard resale rights you might expect at home.

9. 9. Engage independent legal counsel before you sign, not just before settlement

   Independent legal review is most useful before you commit — reviewing the contract at the last minute, right before settlement, leaves little room to walk away from terms you're not comfortable with.

10. 10. If it sounds too good to be true, it probably is

    Guaranteed high fixed returns on an inherently variable asset class are the single strongest pattern behind failed Bali property investments. Treat them as a reason to slow down, not a reason to move fast.

This page is general information only, not legal or financial advice. Always engage an independent, qualified local lawyer or notaris (PPAT) before signing a contract or transferring funds.