Below is a glossary of key legal and operational terms commonly used in residential real estate transactions in Bali.
Developer: The company or individual responsible for planning, building, and selling real estate projects.
Due Diligence: A full legal review of the property’s ownership, permits, taxes, and contracts before purchase.
Leasehold: A long-term right to use a property without owning the land, typically granted for 25–30 years, with possible extensions.
Freehold: Full ownership of land and property. Note: Freehold ownership is generally not available to foreign individuals under Indonesian law.
HGB (Hak Guna Bangunan): A legal right to build and own structures on land for a specified period, usually 30 years, with extension and renewal options subject to regulations.
PJB / PPJB: Types of Sale and Purchase Agreements used in Indonesian real estate transactions.
Escrow Account: A secure bank account held by a third party, where deposits are safely stored until the transaction is completed.
Master Agreement: The main legal agreement outlining all rights, obligations, and terms between the buyer and the developer.
Reservation Agreement: A simple agreement used to reserve a property by paying a deposit, securing it for a limited period.
Notary: A licensed legal professional in Indonesia who verifies and certifies real estate transactions and documents.
SPPT PBB: An annual land and building tax notice issued by Indonesian tax authorities.
BPHTB: A 5% acquisition tax payable upon transfer of property ownership.
Land Certificate (SHM, HGB): The official document that certifies legal ownership or rights to a land parcel in Indonesia.
Property Management: A service to manage the property on behalf of the owner, including maintenance, rentals, and financial reporting.
Handover: The formal process of transferring possession of the property from the developer to the buyer after completion.
Additional project-specific terms and structures are outlined within individual project documentation.
Please download Company Overview and Project Portfolio.