{"id":3690,"date":"2025-05-26T02:00:32","date_gmt":"2025-05-26T02:00:32","guid":{"rendered":"https:\/\/gravitybali.com\/?p=3690"},"modified":"2025-05-27T02:08:51","modified_gmt":"2025-05-27T02:08:51","slug":"how-to-avoid-scams-when-buying-property-in-bali","status":"publish","type":"post","link":"https:\/\/gravitybali.com\/en\/how-to-avoid-scams-when-buying-property-in-bali\/","title":{"rendered":"How to Avoid Scams When Buying Property in Bali"},"content":{"rendered":"\t\t
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A dream island\u2026 but a market that must be understood before buying<\/h2>

Buying a villa in Bali can seem like an accessible dream<\/strong>: idyllic climate, attractive rental yields, favorable tax conditions\u2026 But behind this postcard image, there are also legal grey areas, unclear practices, and sometimes real scams<\/strong>.<\/p>

Every year, foreign investors lose tens of thousands of dollars \u2014 not because of the property itself, but because of a lack of preparation, verification, or proper guidance<\/strong>.<\/p>

Here\u2019s a clear and complete checklist<\/strong> of the most common pitfalls in Bali real estate \u2014 and how to avoid them.<\/p>

1. Understand the difference between \u201cFreehold\u201d and \u201cLeasehold\u201d<\/h2>

It\u2019s the foundation \u2014 and many get it wrong<\/h3>

In Indonesia, foreigners cannot legally own land in Freehold<\/strong> (Hak Milik).
However, they can purchase property under:<\/p>

  • Leasehold<\/strong>: a 25- to 30-year lease<\/strong>, often renewable (sometimes up to 90 years)<\/p><\/li>

  • A foreign-owned company (PT PMA)<\/strong>, with strict legal structure and usage<\/p><\/li><\/ul>

    \ud83d\udea9 If someone offers to sell you \u201cFreehold\u201d under your personal name \u2014 it\u2019s illegal. Walk away.<\/em><\/p>

    2. Always go through an independent notary<\/h2>

    Don\u2019t rely solely on the seller\u2026 or their \u201crecommended notary\u201d<\/h3>

    A local notary is required to validate the sale<\/strong>, but some work closely with agencies or developers.<\/p>

    \u2705 Be sure to:<\/p>

    • Choose an independent notary<\/strong>, ideally recommended by a legal firm or trusted investor<\/p><\/li>

    • Have them verify land certificates and ownership rights<\/strong><\/p><\/li>

    • Request a fully translated bilingual contract<\/strong> (English\u2013Indonesian) before signing anything<\/p><\/li><\/ul>

      \ud83d\udca1 A good notary costs around 1% of the sale price. A legal mistake can cost you the entire investment.<\/em><\/p>

      3. Verify the seller\u2019s identity and all legal documents<\/h2>

      Identity fraud and double-selling happen in Bali<\/h3>

      Before any payment:<\/p>

      • Request a copy of the SHM or SHGB<\/strong> (land certificate)<\/p><\/li>

      • Ensure the name exactly matches<\/strong> the seller\u2019s ID<\/p><\/li>

      • Ask to see original documents<\/strong>, not just phone pictures<\/p><\/li>

      • Check that the land is free from debt, dispute, or mortgage<\/strong> (verified at the BPN Land Office)<\/p><\/li><\/ul>

        \ud83d\uded1 Many scams start with a \u201cseller\u201d who doesn\u2019t legally own the land.<\/em><\/p>

        4. Never sign or transfer funds without full due diligence<\/h2>

        No \u201cquick deals,\u201d no pressure<\/h3>

        Some pushy agents will ask you to:<\/p>

        • sign a draft agreement without review,<\/p><\/li>

        • pay a deposit without valid documents,<\/p><\/li>

        • \u201creserve the land\u201d with no legal commitment<\/p><\/li><\/ul>

          \u2705 You should always complete full due diligence before<\/strong> signing or paying anything:<\/p>

          • Legal background check<\/strong> by a notary or real estate lawyer<\/p><\/li>

          • Physical site inspection<\/strong> and boundary check<\/p><\/li>

          • Permit validation<\/strong> (IMB or PBG \u2014 local building permit)<\/p><\/li>

          • Verification of access roads and servitudes<\/strong><\/p><\/li><\/ul>

            \ud83d\udd0d If it looks too good to be true, it probably is.<\/em><\/p>

            5. Use a PT PMA structure if you want stronger legal standing<\/h2>

            For serious, long-term investment<\/h3>

            If you plan to:<\/p>

            • make multiple acquisitions<\/p><\/li>

            • operate commercial rentals legally<\/p><\/li>

            • resell the property later with more options<\/p><\/li><\/ul>

              \u2026 the best solution is to create a foreign-owned Indonesian company (PT PMA)<\/strong><\/p>

              This allows:<\/p>

              • ownership of property under Hak Guna Bangunan<\/strong> (right to build)<\/p><\/li>

              • legal operation and rental income<\/p><\/li>

              • easier contract execution and resale<\/p><\/li><\/ul>

                \ud83d\udccc Note: This requires a clear business plan, local office, capital, and accounting.<\/em><\/p>

                6. Work only with qualified and verified professionals<\/h2>

                Your team is your best protection<\/h3>

                Many \u201cbrokers\u201d in Bali operate without licenses or legal protection<\/strong> \u2014 they work purely on commission.<\/p>

                To secure your project:<\/p>

                • Hire a real estate lawyer fluent in English or French<\/strong><\/p><\/li>

                • Use an independent notary<\/strong> with strong references<\/p><\/li>

                • Partner with a professional inspection team<\/strong><\/p><\/li>

                • Work with a legit property management company<\/strong> for rentals<\/p><\/li><\/ul>

                  \ud83c\udf10 At Gravity Bali, we only work with licensed, insured, and vetted professionals<\/strong>.<\/em><\/p>

                  Real case: how an investor almost lost $50,000<\/h2>

                  In 2022, a Belgian client contacted us after transferring $50,000 to a \u201cland seller\u201d in Bali for a Freehold plot.
                  Turns out, the person had no legal claim<\/strong> to the land.<\/p>

                  With the help of a local lawyer, we managed to stop further damage, but the money was never recovered.<\/p>

                  \ud83d\udc49 Today, this same client bought a fully compliant Leasehold villa through our network \u2014 and it\u2019s generating strong returns.<\/em><\/p>

                  Conclusion: yes, Bali is an opportunity \u2014 if you’re properly guided<\/h2>

                  Bali is full of potential, but also full of pitfalls for the unprepared.
                  By following these steps and working only with qualified professionals, you\u2019ll transform a risky purchase into a solid, profitable investment<\/strong>.<\/p>

                  <\/p>

                  <\/p>

                  <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

                  A dream island\u2026 but a market that must be understood before buying Buying a villa in Bali can seem like an accessible dream: idyllic climate, attractive rental yields, favorable tax conditions\u2026 But behind this postcard image, there are also legal grey areas, unclear practices, and sometimes real scams. Every year, foreign investors lose tens of […]<\/p>\n","protected":false},"author":1,"featured_media":3691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-3690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-villa-rental-tips"],"acf":[],"yoast_head":"\nHow to Buy Property Safely in Bali: Tips and Tricks - Gravity Bali<\/title>\n<meta name=\"description\" content=\"Ensure a secure property purchase in Bali by understanding how to buy property safely in Bali with our valuable insights.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gravitybali.com\/en\/how-to-avoid-scams-when-buying-property-in-bali\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Avoid Scams When Buying Property in Bali\" \/>\n<meta property=\"og:description\" content=\"Ensure a secure property purchase in Bali by understanding how to buy property safely in Bali with our valuable insights.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/gravitybali.com\/en\/how-to-avoid-scams-when-buying-property-in-bali\/\" \/>\n<meta property=\"og:site_name\" content=\"Gravity Bali\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-26T02:00:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-27T02:08:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/gravitybali.com\/wp-content\/uploads\/2025\/05\/u7767829642_a_serious_real_estate_meeting_in_Bali_professional__0b692b86-9932-4ff8-91a9-dbb0abde8498.avif\" \/>\n\t<meta property=\"og:image:width\" content=\"1456\" \/>\n\t<meta property=\"og:image:height\" content=\"816\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gravity Bali\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gravity Bali\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/gravitybali.com\\\/it\\\/come-evitare-le-truffe-quando-si-acquista-una-proprieta-a-bali\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/gravitybali.com\\\/it\\\/come-evitare-le-truffe-quando-si-acquista-una-proprieta-a-bali\\\/\"},\"author\":{\"name\":\"Gravity Bali\",\"@id\":\"https:\\\/\\\/gravitybali.com\\\/tr\\\/#\\\/schema\\\/person\\\/3c47b7d5cc89d2a64ffd5e25a3c82c29\"},\"headline\":\"How to Avoid Scams When Buying Property in Bali\",\"datePublished\":\"2025-05-26T02:00:32+00:00\",\"dateModified\":\"2025-05-27T02:08:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/gravitybali.com\\\/it\\\/come-evitare-le-truffe-quando-si-acquista-una-proprieta-a-bali\\\/\"},\"wordCount\":708,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/gravitybali.com\\\/tr\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/gravitybali.com\\\/it\\\/come-evitare-le-truffe-quando-si-acquista-una-proprieta-a-bali\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/gravitybali.com\\\/wp-content\\\/uploads\\\/2025\\\/05\\\/u7767829642_a_serious_real_estate_meeting_in_Bali_professional__0b692b86-9932-4ff8-91a9-dbb0abde8498.avif\",\"articleSection\":[\"Villa Rental Tips\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/gravitybali.com\\\/it\\\/come-evitare-le-truffe-quando-si-acquista-una-proprieta-a-bali\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/gravitybali.com\\\/it\\\/come-evitare-le-truffe-quando-si-acquista-una-proprieta-a-bali\\\/\",\"url\":\"https:\\\/\\\/gravitybali.com\\\/it\\\/come-evitare-le-truffe-quando-si-acquista-una-proprieta-a-bali\\\/\",\"name\":\"How to Buy Property Safely in Bali: Tips and Tricks - 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