Buying Off-Plan in Bali Step by Step: the Notary, the Certificate Check, Zoning, PBG and SLF
Buying off-plan in Bali comes down to five checks made in the right order: the land certificate at the land office, the zoning of the plot, the building approval (PBG) before construction starts, a contract that ties your payments to real progress, and the certificate of function (SLF) before anyone uses the building. Get those right and the rest is paperwork. Miss one and no amount of paperwork fixes it.
The legal framework depends on what you are buying. If a developer sells a house or apartment with a registered title, Indonesia’s housing rules set out how the preliminary sale agreement (PPJB) must be made and when the developer may sign it. Most off-plan villa sales in Bali, though, are leasehold contracts, and that housing regulation may not apply to them. Then the contract is the only protection you have, and it says whatever was negotiated.
Here is the sequence as we would run it in October 2026, with the people involved, the documents to ask for and the points where the rules leave you exposed.
Who does what: the notary and the PPAT
Two officials appear in a Bali purchase, and a single person may hold both offices. The notary (Notaris) makes authentic deeds such as the PPJB, lease deeds (akta sewa) and company deeds. The land deed official (PPAT, Pejabat Pembuat Akta Tanah) makes the deeds that transfer or create registered land rights, such as the deed of sale (AJB) or the deed granting a Hak Pakai over privately held land. That deed is then registered at the land office, BPN.
Before drafting the deed of sale, the PPAT checks the authenticity of the certificate at the land office, and may sign the transfer only once the seller’s income tax and the buyer’s acquisition duty have been paid. An unregistered grant deed does not bind third parties. For a Hak Pakai, registration is the moment your right takes effect.
If the developer works with its own notary, you can still have your own lawyer review every draft before you sign. We recommend it, whichever structure you are buying.
Step 1: the reservation
A reservation or booking is a contract between you and the seller. No statutory form exists for it, so read what it says about refunds before you pay. Deposits on Bali off-plan villas usually run from about 10 to 30% of the price. These are developer terms, not regulated norms. Ask for the deposit to be refundable if the building approval (PBG) is not issued, and get that in writing in the reservation itself.
Pay attention to the currency. Bank Indonesia’s regulation PBI 17/3/PBI/2015 requires rupiah for transactions in Indonesia and requires businesses to quote prices in rupiah. Bali marketing aimed at foreigners is often shown in US dollars, but the contract and the payments inside Indonesia should be in rupiah, with dollars at most as an indication.
Step 2: due diligence on the land
Start with the certificate: verify it (SHM for Hak Milik land) and the named owner directly at BPN, avoid buying through an intermediary when the person on the certificate is not present, and get a district-court clearance showing no pending disputes. Then check that the annual land and building tax (PBB) has been paid, using the yearly tax bill (SPPT PBB).
Bali land is often held within families, so confirm that all required family consents have been obtained, and ask a lawyer which signatures the law actually requires on the plot you are buying.
Zoning and spatial-use conformity (KKPR)
Zoning decides whether a villa can lawfully stand on the land at all. Check the parcel’s zone (the “ITR” zone check). Bali’s provincial spatial plan is Perda 2/2023, covering 2023 to 2043, and since February 2026 Perda 4/2026 restricts converting productive farmland to commercial use. Land in an agricultural or green zone cannot lawfully take a villa.
The project also needs spatial-use conformity (KKPR). Where a digital detailed spatial plan (RDTR) is integrated into the national OSS licensing system, the confirmation is automatic. Elsewhere an approval is needed. Despite rumours caused by OSS processing delays, KKPR has not been abolished. Our article on zoning in Bali explains the zones in more detail.
The building approval (PBG)
The PBG (Persetujuan Bangunan Gedung) replaced the old IMB building permit under the Job Creation Law and PP 16/2021, and construction may start only after a PBG is issued. IMBs issued before PP 16/2021 remain valid until they expire. For an off-plan project, ask for the PBG number and check that the drawings it approves match what you are buying: the number of buildings, the floor area and the use.
These checks are not formalities. In September 2025, after deadly floods, Bali’s governor announced a halt on new hotels, villas and similar development on productive land and in water-catchment areas. In July 2025, authorities began demolishing 48 structures at Bingin Beach built without permits on protected coastal land.
Step 3: the contract
Houses and apartments with title: the PPJB
For developer sales covered by the housing laws, Ministerial Regulation Permen PUPR 11/PRT/M/2019 requires the PPJB to be a notarial deed, and the buyer must get at least seven days to review the draft. The developer may sign a PPJB only after it holds the land certificate and the building approval, roads and drainage exist, and a consultant has certified that at least 20% of construction is complete.
The same regulation sets refund rules. If the developer misses the dates it disclosed, the buyer may cancel and get a full refund within 30 days. If the buyer defaults after the PPJB, the developer keeps payments up to 10% of the price, or 10% where more has been paid. Ask the notary whether later housing rules have changed the details.
Leasehold villas: the lease deed
Most Bali off-plan villa sales are leasehold contracts. They should be signed as notarial deeds before a notary, because private agreements are weak evidence in Indonesian courts. If the housing regulation does not apply to your contract, you cannot rely on its seven-day review, its 20% construction threshold or its refund rules. If you want those protections, write them into the contract. Our guide to Bali leasehold lists the clauses to cover.
Step 4: paying as the building goes up
Payment plans are usually staged: a deposit, then instalments tied to milestones such as the permit being issued and construction stages, and a balance at completion or handover. Some developers advertise longer schedules, for example 36 monthly instalments. Whatever the schedule, tie each payment to verified construction progress, confirm the PBG has been issued, and check the developer’s track record.
In practice, that means the contract should name each milestone in terms someone can verify on site, and should say who verifies it. A payment due “at 50% completion” with no definition of completion is a payment due when the developer asks for it.
Local finance is unlikely to help here. A registered Hak Pakai can be mortgaged, but you should not count on a bank mortgage against a Bali leasehold, and local lending to foreigners is rare. Most foreign buyers pay cash or use the developer’s plan.
Step 5: completion, handover and the SLF
A finished building needs a certificate of function, the SLF (Sertifikat Laik Fungsi), issued by the regional government to confirm it is fit for use before it is used. Under PP 16/2021 it is valid for 20 years for single and row houses and five years for other buildings. Renewal requires a technical inspection, and sanctions for buildings without one run up to demolition. Ask for the SLF before you accept handover, and check that it matches the building you are receiving.
For a registered title, completion also means the taxes and the deed. The seller pays a 2.5% final income tax on the transfer, and the buyer pays acquisition duty (BPHTB) of up to 5%. The PPAT signs the deed of sale or the grant deed only after both are paid, then registers it at the land office, and the certificate is issued in your name. Our article on Bali property taxes and costs covers the full list.
For a leasehold, handover is the start of the lease term if the contract says so. Check the date from which your years run.
The documents at each stage
| Stage | Document | What to check |
|---|---|---|
| Before reserving | Land certificate (e.g. SHM) | Verified at the land office (BPN); the named owner present and signing |
| Before reserving | District-court clearance | No pending disputes over the land |
| Before reserving | SPPT PBB (yearly land tax bill) | Annual land and building tax paid |
| Before reserving | Zone check and KKPR | The zone allows the planned use; KKPR confirmed or approved |
| Before construction | PBG (or a valid older IMB) | Issued, and matching the project you are buying |
| Contract | PPJB or lease deed, made by a notary | Notarial form, verifiable milestones, refund terms |
| Before use | SLF, from the regional government | Issued for the building you receive |
| Titled sale only | AJB or grant deed before the PPAT, then the certificate | Taxes paid; right registered in your name |
What to check before you pay a deposit
- Which right you are buying: a lease, a Hak Pakai, a strata title or something else. For a Hak Pakai in Bali, the foreign-buyer floor is IDR 5 billion for a house and IDR 2 billion for an apartment, and the figure should be confirmed with the notary.
- The land certificate and the owner, verified at BPN, and every required signature identified by a lawyer.
- The zone of the plot, and whether it is productive farmland caught by the 2025 and 2026 restrictions.
- The PBG, and whether the deposit is refundable if it is not issued.
- A payment schedule tied to milestones you can verify, in rupiah.
- For a titled sale, whether the housing-law protections apply. For a lease, whether you have written equivalent ones into the contract.
- The SLF before handover.
The structures themselves are explained in what foreigners can own in Bali, and the common traps in the risks buyers meet in Bali. Off-plan projects we work with are on our Bali listings, and our Indonesia page explains how we work.
