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Property handovers in Bali require a comprehensive set of compliance documents to ensure legal ownership and operational readiness. Missing any of these essential documents can result in legal complications, occupancy denial, or utility connection issues that could cost investors thousands of dollars in delays and penalties.
As of September 2025, Bali property transactions have become more stringent with updated building permits and environmental compliance requirements. Foreign investors must verify that all 12 key document categories are complete and properly aligned before accepting property handover from developers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Bali property handovers require 12 essential compliance documents ranging from land certificates to environmental permits.
The building permit system has been updated with PBG replacing IMB, and SLF certificates are now mandatory before occupancy.
| Document Category | Current Requirements (2025) | Risk if Missing |
|---|---|---|
| Land Certificate (Sertifikat) | HGB/HGM under correct owner name | No legal ownership proof |
| Building Permit | PBG matching as-built construction | Illegal construction status |
| Fitness Certificate | SLF mandatory before occupancy | Cannot legally occupy property |
| Environmental Permits | AMDAL/UKL-UPL for large projects | Environmental compliance issues |
| Tax Documentation | Current SPPT, PBB, BPHTB receipts | Outstanding tax liabilities |
| Notarial Registration | AJB deed and BPN registration | Unregistered ownership transfer |
| Utility Connections | PLN and PDAM approvals in owner name | No electricity or water access |
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Do you have the land certificate registered under the correct name?
The land certificate (Sertifikat Hak Milik for freehold or Hak Guna Bangunan for leasehold) must be registered under the correct owner's name at handover.
This certificate serves as the foundational proof of legal ownership and is required for any property transaction or transfer of rights in Bali. The document must show the exact name matching your purchase agreement and identification documents.
Foreign investors typically receive HGB (Hak Guna Bangunan) certificates with 25-year terms renewable twice, while Indonesian citizens can obtain HM (Hak Milik) freehold certificates. The certificate number should match all other property documents including the notarial deed and building permits.
Any discrepancy in names, property boundaries, or land area measurements can prevent legal ownership transfer and create complications for future sales or inheritance. Developers must provide the updated certificate with your name registered at BPN (National Land Agency) before handover completion.
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Is the building permit issued and matching the actual construction?
As of 2025, the old IMB (Izin Mendirikan Bangunan) has been replaced by PBG (Persetujuan Bangunan Gedung) as the standard building permit in Bali.
The PBG must match the actual as-built construction including building dimensions, number of floors, room configurations, and structural specifications. Any deviation from the approved plans can result in legal complications and difficulty obtaining the mandatory SLF certificate.
Developers must provide the original PBG document showing approval for the exact building you are purchasing. This includes matching building coverage ratio, floor area ratio, and setback requirements as per local zoning regulations.
Properties built without valid PBG or with significant deviations face demolition orders, heavy fines, and inability to obtain occupancy permits. Foreign buyers should verify that the PBG covers the entire property including any additional structures like pools, gazebos, or staff quarters.
Can you obtain the SLF certificate confirming building fitness for use?
The SLF (Sertifikat Laik Fungsi) is mandatory before any property can be legally occupied in Bali as of 2025.
This certificate verifies that the completed building is structurally safe, matches the approved PBG plans, and meets all government safety and construction standards. Occupancy or commercial use without SLF is strictly prohibited and can result in immediate closure orders.
The SLF application requires submission of as-built drawings, structural engineering reports, fire safety compliance, and electrical system certifications. The local Building Control Office conducts physical inspections before issuing the certificate.
Properties without valid SLF cannot obtain utility connections, insurance coverage, or business licenses. The certificate must be renewed every 5 years for residential properties and annually for commercial buildings, making it an ongoing compliance requirement.
Is the land zoning certificate aligned with intended property use?
The land zoning certificate from the local government must confirm that your intended property use complies with the area's designated zoning classification.
| Zoning Type | Permitted Uses | Restrictions |
|---|---|---|
| Residential (Perumahan) | Single/multi-family homes, homestays | No commercial activities, limited building height |
| Tourism (Pariwisata) | Hotels, villas, restaurants, retail | Special permits required, environmental compliance |
| Commercial (Komersial) | Offices, shops, restaurants, services | Traffic impact studies, parking requirements |
| Green Belt (Jalur Hijau) | Limited low-density development | Strict building coverage, height limits |
| Agricultural (Pertanian) | Farming activities only | No permanent structures above certain size |
| Cultural Heritage (Cagar Budaya) | Traditional architecture only | Design approval required, height restrictions |
| Protected Forest (Hutan Lindung) | Environmental conservation | No development permitted |
Have you checked environmental approval documents if required?
Large-scale developments in Bali require either AMDAL (Analisis Mengenai Dampak Lingkungan) or UKL-UPL (Upaya Pengelolaan Lingkungan-Upaya Pemantauan Lingkungan) environmental permits.
AMDAL is required for projects covering more than 5 hectares, buildings over 8 floors, or developments in environmentally sensitive areas like coastal zones or rice field areas. UKL-UPL applies to smaller projects that still have potential environmental impact.
These documents assess and outline mitigation measures for environmental consequences including water usage, waste management, traffic impact, and ecosystem disruption. Projects without proper environmental permits face immediate shutdown and heavy fines.
Individual villa purchases typically don't require personal AMDAL documents, but the overall development project must have obtained proper environmental clearance. Buyers should verify that the developer has secured all necessary environmental permits for the entire project area.
Is there tax clearance proving all taxes are fully paid?
Complete tax documentation is essential for clean property handover in Bali and includes multiple tax categories.
1. **SPPT (Surat Pemberitahuan Pajak Terhutang)**: Annual land and building tax notification showing current year obligations2. **PBB (Pajak Bumi dan Bangunan) receipts**: Proof of payment for all outstanding land and building taxes3. **BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan)**: Transfer tax paid at the time of ownership change4. **Income tax clearance**: Developer's tax compliance for the sale transaction5. **Withholding tax receipts**: Documentation of taxes withheld during the transaction processOutstanding tax liabilities transfer to new owners, making tax clearance verification crucial before handover. BPHTB rates range from 5-10% of property value depending on location and buyer status.
Foreign buyers must also ensure proper tax treaty benefits are applied and documented. All tax receipts should show payment confirmation with official stamps and reference numbers for future verification.
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Did you get handover minutes signed by both parties?
The handover minutes (Berita Acara Serah Terima) must be signed by both developer and buyer to formalize property transfer and document the condition at handover.
This document should include detailed property inspection results, list of defects or incomplete items, agreed completion timeline for any outstanding work, and confirmation of all documents and keys transferred. The handover minutes serve as legal proof of possession transfer.
The document must specify exact handover date, property address, list of included fixtures and fittings, utility meter readings, and any warranty terms for construction defects. Both parties should retain original signed copies.
Without proper handover minutes, disputes over property condition, missing items, or incomplete work become difficult to resolve legally. The document should be signed only after thorough property inspection and confirmation that all contractual obligations are met.
Are utility connections approved in the property's name?
Utility connection approvals from PLN (electricity) and PDAM (water supply) must be transferred to the new owner's name at handover.
PLN requires a valid electricity connection certificate showing adequate power capacity for the property size and intended use. Residential properties typically receive 1,300-2,200 VA capacity while larger villas may require 3,500-6,600 VA connections.
PDAM water connection approval must show legal water supply with proper meter installation and monthly billing arrangement. Some areas rely on private water companies or wells, requiring separate documentation and quality certificates.
Properties without legal utility connections face immediate disconnection risks and difficulty obtaining insurance or business licenses. Buyers should verify that all utility deposits and connection fees are properly transferred to avoid service disruption.
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Do you have proof of transfer tax payment?
BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan) payment proof is mandatory at property transfer and must be completed before notarial deed signing.
The transfer tax rate varies by location: 5% of property value in most Bali areas, increasing to 10% for properties in prime locations like Seminyak or Canggu. Foreign buyers may face additional tax obligations depending on their residency status.
The BPHTB calculation base uses either the transaction value or NJOP (Nilai Jual Objek Pajak) government assessment value, whichever is higher. Payment must be made at authorized banks with official receipts showing property address, buyer details, and payment confirmation.
Failure to pay BPHTB prevents completion of ownership transfer at BPN and results in the notarial deed being invalid. The receipt must be presented during the deed signing process and kept as permanent record of tax compliance.
Are the notarial deed and BPN registration completed properly?
The notarial deed (AJB - Akta Jual Beli) must be prepared by a certified PPAT notary and registered at BPN to complete legal ownership transfer.
The AJB document contains complete buyer and seller details, property description matching the land certificate, agreed purchase price, payment terms, and legal warranties. This deed serves as the official sale and purchase agreement recognized by Indonesian law.
BPN registration updates the land certificate with the new owner's name and issues a new certificate showing current ownership. This process typically takes 7-14 working days after deed signing and requires payment of registration fees.
Incomplete BPN registration leaves ownership transfer unrecorded, creating risks for future sales, inheritance, or legal disputes. Buyers should receive the updated land certificate with their name before final handover completion.
Are as-built drawings available and matching approved plans?
As-built drawings or final construction reports must be available and match the approved PBG plans to ensure construction compliance.
These technical drawings show the exact dimensions, structural details, electrical layouts, plumbing systems, and architectural features as actually constructed. Any deviations from approved plans must be documented and approved through proper permit amendments.
The as-built drawings are essential for SLF certificate application, future renovation permits, insurance claims, and property resale documentation. Professional architects or engineers typically prepare these documents with official stamps and signatures.
Properties without accurate as-built drawings face difficulties obtaining SLF certificates, building insurance, and future permits for modifications or additions. These drawings become permanent property records for maintenance and legal compliance purposes.
Can you secure a domicile certificate from local authorities?
A domicile certificate (Surat Keterangan Domisili) from the local Banjar or Kelurahan confirms legal residence status and local community compliance.
This certificate is required for various purposes including business license applications, visa extensions, vehicle registration, and formal residence establishment. The document confirms that the property owner is recognized by the local community administration.
Foreign property owners must obtain this certificate to establish legal domicile for investment purposes, even if not residing full-time. The application requires property ownership documents, passport copies, and sometimes local sponsor confirmation.
The certificate typically requires renewal every 1-2 years and involves payment of local administrative fees. Some areas require active participation in local community activities or regular residence verification to maintain the domicile status.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Proper documentation verification at handover protects Bali property investors from legal complications and ensures smooth ownership transfer.
The 12 essential document categories create a comprehensive compliance framework that has become increasingly strict since 2025 regulatory updates.
Sources
- Legal Aspects of Real Estate Transactions in Indonesia - Mondaq
- Buying Property in Indonesia - Emerhub
- SLF Building Certification Requirements - The Bali Lawyer
- Land and Building Tax Documents - MUC Consulting
- How to Get SLF Certificate in Jakarta - The Bali Lawyer
- Indonesian Building Compliance Guide - Schinder Law Firm
- Property Taxes in Indonesia - Indonesia Real Estate
- Buying Property in Indonesia for Foreigners - DSG Pay