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Vetting Bali developers for off-plan projects requires examining their track record, legal compliance, and financial transparency.
The Bali off-plan market carries significant risks due to numerous inexperienced developers entering the market, making thorough due diligence essential for protecting your investment.
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As of September 2025, most Bali developers lack substantial track records, making verification of completed projects, permits, and financial structures crucial before committing to off-plan purchases.
Legitimate developers should provide access to previous project sites, international client references, proper building permits, clear ownership documentation, and construction insurance coverage.
| Due Diligence Area | Key Requirements | Red Flags to Avoid |
|---|---|---|
| Project History | Minimum 3 completed projects in 5 years | No verifiable completed developments |
| Legal Documentation | Current PBG permits, notarized land certificates | Vague or missing permit documentation |
| Financial Structure | Milestone-based payments, escrow accounts | Full upfront payments to company accounts |
| Client References | Direct contact with 2+ international buyers | Refusing to provide buyer references |
| Construction Coverage | Active liability insurance for specific project | No construction insurance or coverage proof |
| Professional Partners | Established Bali architects/engineers | Unknown or unlicensed construction partners |
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Have they completed and delivered at least three off-plan projects in Bali within the past five years?
A legitimate Bali developer must demonstrate a proven track record with at least three completed off-plan projects delivered within the past five years.
As of September 2025, only established developers like BREIG, Ilot Property, and Balitecture have documented portfolios meeting this criterion, particularly in high-demand areas such as Canggu, Berawa, Seminyak, and Uluwatu. These developers maintain public records of their completed projects with specific delivery dates and final buyer handovers.
The majority of developers operating in Bali's off-plan market are new entrants with limited or no completion history. Many have started only one or two small projects, making them high-risk choices for significant investments. Request detailed documentation showing project names, completion dates, number of units delivered, and current occupancy or sales status.
Verify completion records through independent sources rather than relying solely on developer-provided information. Visit local real estate agencies in the target area, as they typically maintain knowledge of which developments have been successfully delivered versus those that faced delays or cancellations.
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Can they show you the exact locations of their previous developments and let you visit those sites today?
Reputable developers will provide specific addresses of their completed projects and actively encourage site visits from potential buyers.
This transparency indicates confidence in their construction quality and project delivery. Established firms maintain detailed project portfolios with exact locations, completion photos, and current property conditions. They understand that allowing site visits builds credibility and demonstrates their capability to deliver promised results.
Schedule visits to at least two completed projects in different areas to assess construction quality, finishing standards, and how well the developments have aged. Examine infrastructure integration, access roads, utility connections, and overall maintenance levels. Speak with current residents or property managers on-site to gather firsthand feedback about the developer's post-completion support and any ongoing issues.
Be wary of developers who provide vague location information, refuse site visits, or claim their previous projects are "private" or inaccessible. This often indicates either poor construction quality, incomplete projects, or fabricated track records.
What percentage of their past buyers were international clients, and can they connect you with at least two for direct references?
Successful Bali developers typically work with 70-85% international clients and should readily connect you with previous overseas buyers for direct references.
The international buyer dominance in Bali's off-plan market means established developers have extensive experience handling foreign client needs, including legal structure explanations, currency considerations, and remote communication during construction phases. They maintain relationships with satisfied clients who are willing to share their experiences with prospective buyers.
Request contact details for at least two international clients who purchased similar property types in similar price ranges within the past two years. Prepare specific questions about communication quality, timeline adherence, construction quality, and post-handover support when speaking with these references.
Legitimate developers will facilitate these connections within 48 hours of your request. They may ask permission from previous clients first, but they won't hesitate to provide references. Developers refusing this request or claiming client confidentiality without offering alternatives should be approached with extreme caution.
Do they hold the correct IMB or PBG building permits for the current project, and can you see the official paperwork?
Every legitimate off-plan project in Bali must have current PBG (Persetujuan Bangunan Gedung) building permits, which replaced the older IMB system, and developers must present original documentation for your review.
| Document Type | What to Verify | Key Details |
|---|---|---|
| PBG Permit | Current validity and project match | Must match exact project specifications and location |
| Land Certificate | Legal ownership status | Should show clear title without disputes |
| Environmental Permit | AMDAL or UKL-UPL compliance | Required for developments over certain sizes |
| Master Plan Approval | Local government endorsement | Confirms project aligns with zoning regulations |
| Construction License | Contractor authorization | Validates builder's legal authority to construct |
The permit documentation should be in the developer's legal entity name and include specific details matching the project you're considering. Cross-reference the permit against the actual project location using GPS coordinates or detailed address information. Any discrepancies between permit details and the proposed development indicate serious legal compliance issues.
Insist on viewing original documents rather than photocopies, and consider engaging a local legal advisor to verify permit authenticity through government databases. The permit should have clear expiration dates showing validity throughout the projected construction period.
What is the exact ownership structure offered — leasehold or freehold — and how many years remain on the land title?
Most Bali off-plan projects offer leasehold arrangements typically ranging from 25-30 years, with some high-value developments providing freehold options to eligible foreign buyers through Indonesian nominee structures.
Leasehold terms should specify the exact duration, renewal options, annual ground rent amounts, and conditions for lease extensions. Many leasehold arrangements include automatic renewal clauses for additional 25-year periods, but these terms vary significantly between developers and locations. Ground rent typically ranges from $500-2,000 annually depending on property size and location.
Freehold options often involve Indonesian nominee ownership structures, where an Indonesian citizen holds legal title on your behalf through contractual agreements. While legally complex, this structure can provide longer-term security when properly executed with experienced legal counsel. The nominee agreements should include right of occupancy, power of attorney, and loan agreements securing your investment.
Verify the current land title status independently through the local land office (BPN) rather than relying solely on developer representations. The remaining lease term should provide adequate time for your investment objectives, whether for personal use, rental income, or eventual resale.
Who legally owns the land right now, and can you review the notarized land certificate before signing anything?
The current legal landowner should be clearly identified in notarized documentation that you can review at the notaris office before making any financial commitments.
Land ownership in Bali follows strict documentation protocols through the National Land Agency (BPN), with certificates showing clear title history, current ownership, and any encumbrances or disputes. The notarized land certificate should match the name on the building permits and development agreements exactly. Any discrepancies indicate potential legal complications that could jeopardize your investment.
Schedule a meeting at the notaris office handling the transaction to review original land certificates, conduct title searches, and verify ownership history. The notaris will confirm whether the land has clear title, identify any existing mortgages or liens, and ensure the current owner has legal authority to develop and sell the property.
Be cautious of developers who refuse notarized certificate reviews or claim the land is owned through complex corporate structures they cannot clearly explain. This often indicates ownership disputes, unpaid debts, or fraudulent arrangements that could result in loss of your investment.
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How do they structure payment schedules, and is money placed into an escrow account or directly into their company account?
Professional Bali developers implement milestone-based payment schedules tied to construction progress, with payments structured around foundation completion, structural progress, finishing stages, and final handover.
Typical payment structures include 10-20% initial deposit, 30% at foundation completion, 25% at structural completion, 25% at finishing completion, and 10-20% final payment upon handover with defect remediation period. This structure protects buyers by ensuring payment progression matches actual construction advancement rather than arbitrary time schedules.
While escrow arrangements provide maximum protection, many established developers in Bali operate through direct company transfers with milestone verification by independent supervisors. If choosing direct payment methods, ensure contracts include specific milestone definitions, photographic progress reporting requirements, and penalty clauses for payment default or construction delays.
Insist on escrow arrangements if risk mitigation is your priority, particularly for developers with limited track records. Escrow services in Bali typically charge 1-2% of the total transaction value but provide significant protection against developer insolvency or project abandonment.
What penalties are clearly written in the contract if construction is delayed, and are they willing to sign on those terms?
Enforceable contracts should include specific penalty clauses for construction delays, typically structured as percentage reductions from final payments or daily penalty amounts ranging from $50-200 per day depending on property value.
Delay penalties should differentiate between minor delays (1-3 months) and significant delays (over 6 months), with escalating penalty structures that increase over time. Minor delays might incur 1-2% purchase price reductions, while major delays could result in 5-10% penalties or contract cancellation rights with full refund plus interest.
Professional developers will sign contracts with clearly defined delay penalties because they maintain realistic construction timelines and have contingency plans for weather delays, permit issues, or material supply problems. They understand that penalty clauses protect both parties by creating accountability and realistic expectations.
Developers who refuse penalty clauses or propose vague "best effort" language should be avoided, as this indicates poor project planning, unrealistic timelines, or lack of confidence in their ability to deliver on schedule. Always insist on specific, enforceable penalty terms before signing any purchase agreement.
Can they provide a full construction timeline with milestones in months and show how they track and report progress?
Established developers provide detailed construction timelines broken down into monthly milestones with specific completion percentages for each phase, from land preparation through final handover.
Professional project timelines typically include land preparation (month 1), foundation and structural work (months 2-6), roof and exterior completion (months 7-9), interior finishing and utilities (months 10-12), landscaping and final details (months 13-15), with final handover and defect remediation (months 15-18). Each milestone should include percentage completion targets and photographic documentation requirements.
Modern developers often provide digital dashboard access where buyers can view real-time construction photos, milestone completion status, and upcoming schedule phases. Some developers offer weekly photo updates, monthly video calls with project managers, and quarterly site visit opportunities for international buyers.
Regular progress reporting through email updates, project management platforms, or dedicated client portals demonstrates professional project management capabilities and commitment to buyer transparency throughout the construction process.
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Do they work with a recognized Bali-based architect or engineering firm, and can you meet that team in person?
Reputable developers maintain long-term partnerships with established Bali architectural and engineering firms and will facilitate direct meetings between buyers and the design teams.
Leading architectural firms in Bali include established practices with 5+ years of local experience, proper Indonesian licensing, and portfolios of completed residential projects. These firms understand local building codes, climate considerations, seismic requirements, and cultural design elements that ensure projects meet both international standards and local regulations.
Request meetings with the project architect and structural engineer to discuss design specifications, material selections, and construction methodologies. Professional design teams will present detailed architectural drawings, structural calculations, and 3D renderings while explaining how the design addresses Bali's tropical climate, earthquake risks, and local building standards.
Be concerned about developers who cannot identify their architectural partners, work with unlicensed designers, or refuse to facilitate team meetings. Quality architecture and engineering partnerships indicate serious professional operations rather than opportunistic development ventures.
Are they insured for construction liability, and can you see the proof of active coverage specific to this project?
Professional developers maintain active construction liability insurance coverage ranging from $500,000-2,000,000 USD per project, with policies specifically naming the development project and covering structural defects, worker accidents, and third-party damages.
Construction insurance should include general liability coverage, professional indemnity for design errors, and structural warranty periods extending 5-10 years post-completion. The insurance policy should name the specific project address, cover the full construction period, and include extended warranty coverage for major structural elements.
Request to see current insurance certificates showing policy validity dates, coverage amounts, and specific project coverage details. The insurance should be issued by recognized Indonesian or international insurance providers with strong financial ratings and local claims processing capabilities.
Developers without proper insurance coverage create significant risks for buyers, including potential liability for construction accidents, structural defects, or third-party damages. Always verify insurance coverage before making any payments, as this indicates professional risk management practices.
What is the resale and rental track record of their past projects, and can they give you actual numbers on ROI from previous villas or apartments?
Established developers can provide specific ROI data from their completed projects, typically showing annual rental yields ranging from 8-15% for well-located properties, with some premium locations achieving 18-25% returns.
Resale performance data should include actual sale prices, time on market, and appreciation percentages for properties sold within 2-5 years of completion. Strong developments typically see 15-30% capital appreciation over 3-5 years, depending on location and market conditions. Rental performance data should show average occupancy rates, seasonal variations, and gross rental yields for similar property types.
Request access to rental management data from their completed projects, including average nightly rates, annual occupancy percentages, and total rental income figures. Many developers maintain relationships with property management companies who can provide actual performance data rather than projected estimates.
Developers with successful track records will readily share performance data because strong results from previous projects serve as powerful sales tools for new developments. Be skeptical of developers who cannot provide specific ROI data or only offer theoretical projections without actual performance history.
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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.
Vetting Bali developers requires examining their completion history, legal compliance, and financial transparency across multiple criteria.
As of September 2025, only a small number of developers meet all professional standards, making thorough due diligence essential for protecting your off-plan investment in Bali's competitive market.
Sources
- LinkedIn - Most Developers in Bali Aren't Real
- Godulu - Best Real Estate Developers in Bali
- Exotiq Property - Buying Off Plan Property in Bali
- Invest Land Bali - Off Plan Properties in Bali
- Coco Development Group - How to Choose the Best Real Estate Agent in Bali
- Karya Nusa - Recommended Bali Contractors
- Bali Business Club - Off Plan Buyer Checklist
- Frame Bali - Real Estate Market Trends 2025