Land acquisition due diligence in Bali

Buying land in Bali can be tricky. Make sure you know what you're buying.

  • Verify the correct owners and certificates of the land
  • Ensure your planned activities are allowed in the area
  • Accurately estimate all the (hidden) transaction costs

Hundreds of foreign investors use Emerhub to set up their foreign companies and manage its compliance.

Excellent services. Quick response, timely feedback on the actions and the deadlines. I am recommending your services to other companies in our group as well.

Saji Abraham - Director, HTC

Fast feedback and detailed explanations. Very satisfied and will use Emerhub again.

Hans Sautter - Hans Sautter Photography

Land acquisition due diligence checklist

Real estate market in Bali is unique. A mix of Indonesian laws and local Balinese culture can cause unexpected problems for the unprepared. For example, how do you know that the person selling you the land actually is the real owner? Are there hidden "donations" you need to make to the local community?
Here at Emerhub we assist you in making sure that you know what you are getting into. Due diligence costs only a fraction of the total land transaction but can prevent the whole deal from becoming a disaster. Our land acquisition due diligence consists of the following sections:
  • General information about the land
  • Land location, coordinates and site condition
  • Compliance with local zoning laws
  • Does the property own taxes
  • Verification of lease agreement and current licenses
  • Estimated sales and purchase fees, taxes, village donation and other expenses.
  • Conclusion
Our property transactions team visits the site, contacts the seller and relevant insitutions and compiles the information into a 10-20 page document.

Common problems discovered during the due diligence

Almost every party involved in a property transaction is incentivised for the deal to happen. The seller, the agents and the notary get paid once you wire the money. Emerhub is the impartial advisor without any reason to push you in either direction - we just identify the potential problems and let you make an informed decision of whether to invest or not.

Land has more beneficiaries than expected

It's very common to find out that the land certificate belongs to a person that has already passed away. In such case the land was inherited by the family and you need to make sure that everyone that has claims for the land is on board with the transaction.

Commercial activities are forbidden or highly restricted

For example - the zoning laws prevent commercial activities (despite there being some businesses run unofficially in the area) or adding water or electricity to the land would require substantial investments.

Unexpected transaction fees

If you build anything in Bali you will have to get approvals from your neighbors that also expect a contribution for that. In some areas there are additional donations that you need to make to the local communities. Know those expenses and put them to your business plan.

Let us help you make informed land acquisition decisions in Bali

Emerhub has been working with foreign companies in Indonesia since 2011. We are passionate about making Bali a better place to do business in and help you make better business decisions.

Fill in the form below, let us know about your plans and let's talk. You can also send us an email at [email protected] or call +6281236599997

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