Embarking on a property journey in Bali, whether buying or building, is a significant undertaking that demands meticulous planning and caution. This guide provides a detailed checklist to safeguard your investment and ensure a smooth process.

Essential Checks Before Handing Over Money

• Land Certificate Verification: Always insist on seeing the original land certificate. Confirm the ownership details before any financial transaction.
• Independent Legal Counsel: Engage your own lawyer, not one provided by the developer, to ensure your interests are protected.
• Document Scrutiny: Verify the documents that establish your connection to the land certificate.
• Physical Land Verification: Ensure the land’s physical attributes match the details specified in the land certificate.
• Legal Access: Confirm that you have full legal access to the land.
• Building Permit: Demand to see the original building permit before making any payments.
• Structural Drawings: Review the structural design drawings, including foundation, reinforced concrete columns, and beam designs. These are crucial, not just architectural drawings.

Contractual Safeguards

• Contract Comprehension: Read and understand every clause in the building contract.
• Detailed Drawings: Ensure a full set of drawings is attached to the contract.
• Specifications List: Insist on a detailed specification list outlining what you will receive and its associated cost.
• Guarantee Periods: Standard guarantee periods should be part of your contract, such as 5 years for structure, 3 years for the roof, and 1 year for other components.
• Protection Clauses: Make sure the contract has clauses that protect your interests, not just the developer’s.
• Payment Schedule: Ensure your payment schedule is balanced with the construction progress. For example, avoid paying 90% of the total cost when the building is only 60% complete.
• Retention Clause: Include a clause that allows you to withhold at least 10% of the total price until all rectifications are completed.
• Deposit Refund: Make sure deposits are fully refundable if the developer defaults.
• Payment Conditions: Do not pay any money until all conditions are agreed and your position is secure.
• Building Tax: Don’t make the last payment until you have the original building tax receipt as proof of payment.
• Final Inspection: Make sure the building is fully inspected by qualified people, and have the developer agree on rectifications in front of witnesses, before you make the final payment.
• Insurance: Make sure that the developer or builder cancels his insurance on your building. Otherwise, in the event of a fire, they will get the payout.

Additional Due Diligence

• Independent Valuation: Do not rely solely on a real estate agent’s valuation. Check the land values and construction costs in the area before agreeing to a sale price.
• Property Maintenance: Consider the long term maintenance needs of the property.
• Building Regulations: Familiarize yourself with the local building regulations.
• Architectural Blindspots: Be aware of the possible architectural blindspots that could lead to design or construction issues.

By following this detailed checklist, you can minimize risks and make informed decisions when buying or building property in Bali. This careful approach will help you protect your investment and realize your vision for your property.