Why Property Due Diligence Is Important
Property due diligence is a critical legal process conducted before purchasing, leasing, or investing in land or buildings. Its main purpose is to ensure that the property is legally clean, compliant, and safe for your intended use. Many property disputes, investment losses, and development delays arise from incomplete or skipped due diligence.
By conducting proper due diligence, you can: – Avoid ownership disputes and overlapping claims – Ensure the land or building can legally be used or developed as planned – Identify hidden legal, zoning, or permit issues early – Reduce financial and legal risks before committing to a transaction – Gain stronger negotiation leverage and peace of mind
What Does Property Due Diligence Cover?
Our due diligence service focuses on legal certainty, regulatory compliance, and investment readiness of the property. The scope can be adjusted depending on the client’s objectives (purchase, lease, development, or investment).
Scope of Due Diligence Services
Standard Due Diligence
Our Standard Due Diligence includes the following checks:
- Verification of land title (Hak Milik, HGB, or other relevant rights).
- Review of ownership history and encumbrances (mortgages, liens, disputes, pending claims).
- Verification of zoning (zoning map check and confirmation of permitted use).
- Review of building permits (IMB/PBG) and conformity with the land’s designation.
- Review of lease agreements (if leasehold) or other relevant contractual documentation.
- Cross-check with relevant government offices (Land Office / BPN, Notary / PPAT records).
- Identification of potential legal risks and compliance issues.
- Annual Land and Building Tax (PBB) checking, including penalties or outstanding payments.
- Review of business activities and permits allowed or eligible based on zoning and legal conditions.
- Preparation of a written due diligence report containing findings, risk analysis, and recommendations.
Due Diligence with Site Inspection
In addition to all items covered in the Standard Due Diligence, we also offer Due Diligence with Site Inspection, which provides on-the-ground verification to support legal findings.
Additional site inspection scope includes:
- Rough measurement of the land based on visible boundaries and landmarks (to confirm location and approximate size).
- Checking availability and status of access roads (private, public, or semi-private access).
- Photo and video documentation of the land and surrounding area.
- Observation and notes on land condition and neighboring plots for the client’s consideration.
- Checking availability of basic utilities such as water and electricity.
- Additional site notes based on the client’s specific concerns or interests.
Deliverables
At the completion of the due diligence process, the client will receive: – A comprehensive written report – Clear summary of legal status and zoning compliance – Identified risks and potential issues – Practical recommendations and next steps
Timeline
- Badung Area: approximately 14 working days
- Outside Badung: up to 30 working days
Important Notes
- This service does not replace formal land surveying or structural engineering inspections.
- Any critical findings will be communicated promptly during the process.
- Scope may be expanded based on property complexity or client request.
Why Land Certificate Verification Is Important
Land certificate verification is a fundamental legal check to confirm that a land title is valid, authentic, dispute-free, and legally transferable. Many land-related issues in Indonesia arise from overlapping ownership claims, blocked certificates, inheritance disputes, or administrative irregularities.
By conducting proper title search and certificate verification, you can: – Confirm that the seller or lessor is the lawful and registered owner – Avoid land disputes, blocked titles, or confiscated properties – Ensure the land can be legally sold, leased, mortgaged, or developed – Detect hidden legal risks before signing any binding agreement – Protect your investment from future legal challenges
Scope of Title Search & Land Certificate Verification Services
Our Land Certificate Status and Ownership Checking includes, but is not limited to, the following:
- Verification of land certificate authenticity and type (Hak Milik, HGB, Hak Pakai, or other rights)
- Confirmation of registered owner details against official Land Office (BPN) records
- Review of ownership history (chain of title) to identify irregular transfers or gaps
- Checking for existing disputes, objections, or third-party claims
- Checking for blocking status, confiscation, or court orders affecting the land
- Verification of encumbrances such as mortgages, security rights (Hak Tanggungan), or liens
- Cross-check with BPN and related government databases
- Verification of land plot data, certificate number, measurement letter (Surat Ukur), and land map alignment
- Identification of potential risks related to inheritance, marital property, or corporate ownership
Additional Optional Checks (If Required)
Depending on the client’s needs, we may also assist with:
- Coordination with Notary / PPAT for deeper title history clarification
- Preliminary zoning confirmation related to certificate usage
- Support for certificate upgrading or conversion (e.g. HGB to Hak Milik, where applicable)
- Assistance in resolving administrative discrepancies before transaction
Deliverables
Upon completion, the client will receive: – Written title search and certificate verification summary – Confirmation of legal ownership status – Identified legal risks or red flags – Practical recommendations and next steps
Timeline
- Badung Area: approximately 7 working days
- Outside Badung: up to 30 working days
Important Notes
- This service focuses on legal and administrative verification, not physical land surveying
- Findings are based on official government records available at the time of checking
- Scope may be expanded based on land complexity or client request
