Due Diligence by Istana Jiwa Property

We conduct due diligence before we list land for sale.

1. ‍Rightful Owner with Valid Certificate - Firstly, we ensure that the person selling you the land is the rightful owner. Then, we request an updated and valid land certificate.
2. Tax Payments - One of the most critical aspects of land acquisition in Bali is to verify whether the former owner has paid their land taxes before you complete the transaction. Unpaid taxes mean you will not be able to proceed with activities such as acquisition and obtaining a building permit.
3. Zoning Verification - Under Bali's zoning regulations, commercial activities are prohibited in some areas of the island. Therefore, your land could be unsuitable if it does not have the correct zoning for your intended business activities.
4. Building Permit - If there is a building on the land you are planning to buy, you must ensure that it has a valid building permit (IMB). To avoid any litigation, the building's classification and function must comply with Bali's zoning laws. Buildings that do not meet zoning requirements or lack an IMB will be subject to demolition by the government.
5. Land Infrastructure and Property Boundaries - It is important to determine the land's actual size and check for any overlapping property boundaries with due diligence. This confirms the integrity of your land transaction. Even a small overlap can lead to disputes between landowners and their neighbors. Additionally, expatriates should verify the legality of any access roads, as some may be privately owned or publicly owned by the local community. This can also affect the value of your purchased property.
6. Limited Property Access - In Bali and Lombok, it is common for foreigners who purchase a villa to also receive permission for road access from the previous owner, who holds the land linked to the foreigner's villa. However, the landowner may later decide to charge fees for road access, which can lead to disputes and costly court cases. Therefore, foreigners should be aware that road access might not be as "free" as it initially seems.

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