What the checks cover
Due diligence answers one question: can you legally and practically do what you plan to do with this property, with this counterparty, under this contract?
Title and ownership
- Certificate check at BPN. The notary or land-deed official (PPAT) verifies that the certificate is genuine, registered and matches the plot.
- Type of right. Freehold (Hak Milik), HGB or Hak Pakai — this determines what can be leased or transferred, and to whom.
- Owner identity and authority. Identity documents, family card, and — for inherited land — the consent of all heirs. Marital property requires the spouse’s consent.
- Encumbrances. Mortgages (Hak Tanggungan), blocks, disputes or court seizures registered on the certificate.
- Land tax (PBB). Payment history, so that arrears do not follow the property.
Land and location
- Zoning under the regency’s detailed spatial plan (RDTR) and the provincial plan: residential, tourism, agricultural, green belt or protected land. See land and zoning checks.
- Protected agricultural land (LP2B) and productive rice fields. Conversion is now prohibited or restricted in Bali.
- Coastal and river setbacks. Beachfront land is subject to a setback of at least 100 metres from the highest tide line under national regulation.
- Legal access. A registered road or a written right of way, not an informal path over a neighbour’s land.
- Boundaries and size. Physical measurement against the certificate.
Existing buildings
- PBG and SLF. Whether the building has a building approval and a certificate of fitness for use, and whether what was built matches the approved drawings. See building permits PBG and SLF.
- Technical condition. Structure, waterproofing, drainage, electrical and water systems.
- Operating licences if the property is sold as a going rental business.
The contract
- Term, extension mechanism and price of extension written as a formula, not as “to be negotiated”.
- The heirs’ obligation to honour the lease.
- Right to build, renovate and sub-lease.
- Payment schedule linked to documents, not to dates.
How ICM runs it
- We review what the seller or agent has provided and list what is missing.
- We coordinate the notary for the land-office check and, where needed, a lawyer for litigation searches.
- We check zoning and access, visit the site and, for existing buildings, bring in a technical inspector.
- We deliver a written summary: what is confirmed, what is a risk, what must be fixed in the contract, and whether we would proceed.
We are on site in Bali, so the physical checks are done by us, not by a remote desk.
Red flags we see most often
- Deposits requested before the certificate can be seen.
- “The zoning will be changed later.”
- One family member signing for land owned by several heirs.
- A villa marketed as a rental business without PBG and SLF.
- Extension clauses with no price or formula.
For the broader decision on structure and whether to proceed, see investment advisory.