Questions to Ask a Bali Developer Before You Commit — and Red Flags to Watch For

Buying from a developer in Bali — especially off-plan — means trusting that what is promised will actually be delivered: on time, to specification, and with the legal structure intact. The best protection is a set of direct questions asked before any commitment, and an honest read of how the developer answers them.

A credible developer welcomes these questions and answers them with specifics. A developer who deflects, gets defensive, or offers vague reassurance is telling you something.

Ask precisely what right you are acquiring: leasehold (Hak Sewa) and for how many years, Hak Pakai, or a PT PMA structure. Ask what the land title underneath is and who holds it. A good developer answers clearly and in detail. A developer who is vague about the legal structure, or who uses the word "ownership" loosely to imply freehold, is a red flag. Our guide to leasehold versus freehold explains what the honest answers look like.

For a leasehold, the extension terms are everything. Ask whether there is a contractual right to extend, at what cost, and on what basis the cost is set. Ask to see the actual extension clause. A developer who has a clear, documented extension mechanism is offering a real long-term asset. One who waves the question away with assurances that extensions are never a problem is offering something worth nothing in fifteen years.

This is one of the most revealing questions. A developer with a genuine track record can show you completed, occupied projects and connect you with buyers from earlier phases. A developer who cannot — or who is evasive about it — may be newer, smaller, or less reliable than they present. Speaking directly to a previous buyer about delivery timing, build quality, and how the developer behaved after handover is worth more than any brochure.

Ask about the building permit (PBG, or Persetujuan Bangunan Gedung) and the zoning designation. Ask whether the land is legally permitted for tourism accommodation if you intend to rent. A credible developer provides permit documentation you can verify independently. Reluctance to share permit details, or claims that permits are "in process" with no timeline, warrants caution. Our due diligence checklist covers what to verify.

Developers quote yields. Ask specifically whether the figure is gross or net, what occupancy assumption it uses, and what data it is based on. A developer who can show actual rental performance from comparable completed units is credible. One who quotes a high gross yield based on peak-season occupancy with no cost deductions is marketing, not informing. Our real cost of owning guide shows how to test the number independently.

Clarify exactly what the price includes: furnishing, landscaping, pool, permits, notary costs, taxes. Ask what is billed on top. Off-plan purchases in particular can carry costs that surface only later. Get the full picture in writing before committing to anything.

Many developers offer in-house rental management. Ask whether you are contractually required to use it or free to choose your own manager. Being locked into a developer's management arm at fees you did not negotiate can erode returns significantly. The freedom to choose is worth protecting. Our guide to rental management companies covers the alternatives.

Some answers should end the conversation entirely.

Walk away immediately if a developer

• Proposes a nominee structure, where an Indonesian national holds freehold title on your behalf — this is illegal under Indonesian agrarian law and puts your entire investment at risk of total loss
• Applies pressure to pay quickly to "secure the price"
• Requests payment into personal accounts
• Shows reluctance to allow your independent lawyer to be involved
• Gives vague or shifting answers on the legal structure
• Cannot show any completed, delivered work

Trust the behaviour, not the brochure.

The throughline is simple: a developer worth buying from operates with transparency and welcomes scrutiny. One who treats your due diligence as an obstacle is showing you how they will behave after they have your money. For the full set of pre-purchase checks, pair this with our due diligence checklist.

• Indonesian land law: nominee structure prohibition under Agrarian Law No. 5 of 1960 — ATR/BPN
• Indonesian building permit framework: PBG (Persetujuan Bangunan Gedung) — SIMBG