Investing in Real Estate in Bali: Who Regulates the Relationship Between Buyer and Developer?

Bali is a dream island that attracts investors from all over the world with its exotic beauty and growing real estate market. However, ignorance of local laws and legal regulations can become a serious obstacle to successful investments. Many potential investors, fearing the risks associated with the foreign market, refuse to buy real estate on the island. Let's figure out who protects your interests when investing in real estate in Bali.

Unlike many countries, Bali does not have a single supervisory authority that regulates the real estate market and ensures the operation of escrow accounts.

This creates certain difficulties, but does not make investment impossible. Your interests are protected by a multi-level control system, including government agencies and private specialists.

National Land Agency (ATR/BPN): This is the equivalent of the Russian Rosreestr. ATR/BPN is responsible for registering land ownership rights and monitoring compliance with land legislation. All land transactions must be registered with ATR/BPN, which ensures the transparency and legitimacy of the transaction. Checking land documents through ATR/BPN is a mandatory step before any purchase.

Notaries and lawyers: Their role is critical. An experienced notary or lawyer specializing in real estate in Bali will analyze all documents, check the legal purity of the transaction, protect your interests at all stages, from checking the developer's documents to signing the final contract. Their participation is a guarantee that the transaction will be carried out in accordance with Indonesian laws and that your rights will be protected.

Property Officials (PPAT): These professionals formalize transactions and issue leasehold certificates. It is important to understand that the leasehold system, i.e. land leases for a certain period, prevails in Bali.

PPAT is the guarantor of the legality of the issuance and registration of these certificates. Interaction with PPAT occurs through your personal representative or lawyer, which eliminates direct contacts and possible risks.

Thorough check of the developer: Choosing a reliable developer is half the battle. It is necessary to check their reputation, availability of licenses, history of completed projects and customer reviews. Real estate professionals will help you with this.

Checking all documents: Do not hesitate to involve independent experts to check all documents related to the transaction. This will help identify possible risks and prevent fraud.

Working with a reliable agency: Choosing a professional real estate agency with experience in Bali and knowledge of local laws significantly reduces risks and simplifies the entire process. Mercury Group experts will provide all the necessary information about developers and help to conduct a thorough check of all documents.

Investments in real estate in Bali, despite the lack of a centralized control system, are quite safe if you take a professional approach.

Careful verification of all documents, cooperation with experienced lawyers and notaries, as well as the choice of a reliable developer and intermediary will help minimize risks and guarantee the safety of your investments.

Remember that ignorance of the laws does not exempt from liability, so it is better to play it safe and enlist the support of professionals.