How to Buy a Villa Off-Plan Safely in Bali

Buying an off-plan villa in Bali can be a smart investment — offering lower prices, customizable design, and strong rental potential. But to protect your money, you need to follow the right steps. Here’s how to buy safely:

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1. Check the Developer’s Reputation

• Research their previous completed projects
• Visit their past villas if possible
• Confirm they have a legal Indonesian company
  A reliable developer reduces 90% of potential risks.

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2. Verify All Land Documents

Before anything, ensure the land is legally clean:

• Certificate (SHM or HGB)
• Zoning compatibility (for villa accommodation)
• PBG/IMB (building permit)
• No disputes or encumbrances
  Always have a notary verify these documents.

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3. Work With a Trusted Notary (PPAT)

A notary ensures:

• Safe transfer of rights
• Legal protection for foreigners
• Valid contracts and payment structures
  Never rely solely on the developer’s word — always involve a PPAT.

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4. Use a Detailed PPJB / SPA Agreement

Your contract must clearly state:

• Construction phases & timeline
• Payment milestones
• Penalties for delays
• Specifications of materials and finishing
• Warranty period
  A vague contract is a major risk.

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5. Follow a Stage-Payment System

Never pay 100% upfront.
Use milestone-based payments such as:

• 20% signing
• 20% foundation
• 20% structure
• 20% roofing & finishing
• 20% handover
  This protects you if construction slows or stops.

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6. Request Regular Construction Updates

Ask for:

• Monthly photo/video updates
• On-site visits
• Clear progress reports
  Transparency is key.

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7. Ensure a Warranty / Defect Liability Period

Most reputable developers offer a 6–12 months warranty after handover for:

• Plumbing
• Electrical
• Roof leaks
• Structural defects

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8. Understand the Ownership Structure

In Bali, ownership types include:

• SHM (Freehold) — only for Indonesian citizens
• HGB (Right to Build) — often used by PT PMA
• Leasehold — common for foreigners (25–30 years)
  Know which one applies to you and your rights.

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9. Consider Using an Escrow Service

If available, escrow protects your funds until each construction phase is completed.

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10. Conduct a Final Independent Inspection

Before your last payment, hire a qualified inspector to check:

• Structure integrity
• MEP systems
• Finishing quality
  This confirms the villa matches the agreed specifications.