What Are Due Diligence Documents in Real Estate? A Complete Buyer’s Guide – Warm greetings to all readers across Indonesia! Are you currently considering purchasing a property and want to ensure that all related due diligence documents are complete and trustworthy? If so, this article is the perfect guide for you. SIEMA KONSULTAN, as a company with extensive experience in real estate due diligence, invites you to fully understand the essential documents that need to be verified before proceeding with a property transaction. Let’s explore together the vital information that will help you make safe and reliable decisions.

In the world of real estate, due diligence is a critical step that cannot be overlooked. Generally, due diligence is the process of investigating and verifying documents and the legal status of the property you intend to buy. The goal is to ensure that the property is free from legal issues, disputes, or encumbrances that could harm the buyer in the future.

This process not only protects your rights and investment but also speeds up the transaction process and increases confidence in the property you are purchasing. In Indonesia, due diligence involves a careful examination of various documents to ensure their completeness and legal validity.

What Are the Required Due Diligence Documents in Real Estate?

Below is a comprehensive list of documents typically required during the due diligence process in Indonesian real estate transactions:

1. Land and Building Certificates

The certificate is the primary document that proves ownership rights over land and buildings. There are several types of certificates to check, such as Hak Milik (Ownership Title), Hak Guna Bangunan (Right to Build), and Hak Pakai (Use Rights).

Why Is It Important?
To verify that the certificate is genuine, not involved in disputes, and matches the physical conditions on the ground.

2. Building Permit (IMB)

IMB is an official permit issued by local authorities stating that the building was constructed in accordance with applicable regulations and permits.

Why Is It Important?
To ensure that the building was legally constructed and will not pose legal issues in the future.

3. Land and Building Tax (PBB) and Acquisition Fee (BPHTB)

These documents show that land and building taxes have been paid according to regulations.

Why Is It Important?
To confirm there are no outstanding tax liabilities that could cause problems later.

4. Sale and Purchase Agreement (PPJB) and Deed of Sale (AJB)

These documents are the legal proof of the transaction between the seller and buyer.

Why Is It Important?
To ensure the legality and validity of the transaction and avoid disputes in the future.

5. Mortgage Certificate (if applicable)

If there is a loan or mortgage secured with the property, this document must be checked.

Why Is It Important?
To prevent the property from being under a lien or encumbrance that could hinder the transfer process.

6. Environmental and Regional Development Permits

Some properties require environmental permits, impact analysis, or other related development documents.

Why Is It Important?
To ensure the property isn’t threatened by new regulations or incompatible development plans.

The Verification Process for Due Diligence Documents

Once you know the list of documents to verify, the next step is to have experienced professionals conduct the verification. This process includes:

• Checking the legality of documents both physically and administratively
• Authenticity verification through relevant agencies
• Confirming land and building rights with the National Land Agency (BPN)
• Legal risk analysis and potential dispute identification

Benefits of Conducting Due Diligence in Real Estate

Performing thorough due diligence offers many benefits, including:

• Protecting your rights and investment from legal risks
• Avoiding future disputes and legal issues
• Ensuring the property you purchase matches the official data and documents
• Facilitating bank loan or credit application processes
• Gaining peace of mind and confidence in your transaction

Understanding and properly executing due diligence is the key to successful and secure real estate transactions in Indonesia. Ensure your documents are complete and legitimate before making a purchase, so your property investment is protected legally and financially. SIEMA KONSULTAN is ready to be your trusted partner in this process. Feel free to contact us and achieve a safe and trustworthy property transaction.

For more information

Please visit:

www.siemakonsultan.com

Jakarta Office:

Sampoerna Strategic Square

South Tower Level 30,

Jl.Jend.Sudirman Kav.45

Jakarta Selatan – DKI Jakarta

Bali Office: 

Jl. Cokroaminoto No.212,

Ubung, Denpasar Utara,

Bali – Indonesia

Contact Us:

Imam Budiharto
imam@siemakonsultan.com

Telpon: 021 2992 7844

Whatsapp: 0813 1114 2228