12 Steps To Buying A Private Villa in Bali?

The most efficient and economical way to buy a private villa in Bali is to enter into a Leasehold Agreement (i.e. you lease the villa for 15-30 years)

The process is relatively simple and takes 3-5 weeks until you can own your dream villa in Bali.

Below are the steps of the process:

  1. Research a villa that fits your budget and provides high Return-On-Investment (start here)

  2. Let us know which villa you are interested in. We'll provide you all the information needed including income and expense information for the Villa, so you can make an educated buying decision. You can come visit the villa or buy it sight unseen. 

  3. When you indicate an interest to purchase, we'll send you a Seller's Agreement and Memorandum-of-Understanding (MOU) that details the purchase terms.

  4. Once you review, comment (if needed) and eventually approve the final MOU, it will be signed by you and the Seller.

  5. A Deposit of 20% of the purchase price would be wired to the a U.S. escrow account for safe keeping. The Deposit takes the villa off the market.

  6. The Notary (a neutral lawyer) starts the Due Diligence process that makes sure the villa has the proper rights and no lien (usually a two weeks process). We initiate an Inspection by 3rd party to review the villa condition. 

  7. In parallel, a Leasehold Agreement is drafted by the Notary and sent for the Buyer and Seller for review and approval.

  8. If Due Diligence comes clean (i.e. no liens) and after the Seller fixed any item identified in the appraisal, the Buyer and Seller are scheduled for closing at the Notary office to sign the Leasehold Agreement. You can also sign from abroad via a power of attorney. 

  9. The balance of the purchase price (80%) is wired to the Notary’s escrow account.

  10. Notary releases escrow of the full purchase price to the Seller.

  11. Notary provides the Leasehold Deed to the Buyer and with it declares that the ownership was fully transferred to the Buyer. 

  12. We'll notify the Villa’s management company of the purchase and introduce the Buyer to the management company. All future rental income will be received by the Buyer going forward. 

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