how to avoid property scams in bali: the 2025 buyer’s checklist

Bali’s real estate market offers incredible opportunities, from luxury beachfront villas to peaceful rice-field retreats. But with its booming popularity, the island has also attracted a few bad actors looking to take advantage of eager buyers.

The good news? With the right knowledge and expert support, you can protect yourself and ensure your investment is 100% legitimate. Here’s your complete 2025 guide to avoiding property scams in Bali.

1. Work Only With Licensed & Reputable Agencies

In Bali, using a certified real estate agency is your first line of defense. Licensed agencies must adhere to Indonesian property laws and ethical guidelines.

• Check credentials: Ask for the agency’s business license (SIUP4) and NIB number.

• Look for reviews: Genuine agencies have a track record and client testimonials.

• Avoid ‘side deals’: If someone suggests skipping legal steps to “save money,” that’s a red flag.

2. Verify Land Ownership & Zoning

The most common scam in Bali involves selling land without legitimate ownership rights or selling land zoned for agriculture as if it were for residential use.

• Request the Land Certificate (Sertifikat Tanah).

• Check zoning classification (Peruntukan Tanah) with the local government.

• Confirm free from disputes: Ensure there are no ongoing court cases or multiple ownership claims.

3. Always Use a Notary (PPAT)

A Notary/PPAT in Indonesia is not just a formality — they are legally required to oversee property transactions.

• They verify ownership, taxes, and legal compliance.

• They ensure contracts are in proper legal format (Akta Jual Beli).

• Never sign documents without a notary present.

4. Avoid Paying 100% Upfront

If a seller insists on full payment before all legal checks are complete, proceed with extreme caution.

• Use a payment schedule linked to verified milestones.

• Consider using escrow services to hold funds securely until all conditions are met.

5. Be Wary of Unrealistically Low Prices

If it sounds too good to be true in Bali’s property market, it usually is.

• Compare with similar listings in the same area.

• Beware of “urgent sales” that pressure you to decide in hours or days.

6. Understand the Legal Limitations for Foreigners

Foreigners cannot directly own freehold land in Indonesia. Legal structures such as Hak Pakai (Right to Use) or PT PMA (foreign-owned company) must be used.

• Never agree to use an informal nominee arrangement without legal safeguards — it’s risky and often unenforceable.

• Seek advice from a property lawyer familiar with foreign ownership laws.

7. Partner With Experts

The safest way to buy property in Bali is to partner with professionals who understand the local market and legal requirements. That means choosing an agency that:

• Provides licensed listings vetted for authenticity.

• Works with experienced notaries to ensure every transaction is legally airtight.

• Offers transparent processes with no hidden fees.

Conclusion: Protect Your Investment, Live Your Bali Dream

Bali offers fantastic real estate opportunities — but only for those who navigate the market with care. By working with trusted professionals, verifying all documents, and staying alert to red flags, you can protect your investment and enjoy the Bali lifestyle stress-free.

At Kibarer Property, we’ve built our reputation on trust, transparency, and delivering results. From due diligence checks to secure contracts, our team ensures your property purchase is not only safe but also smart.