The Role of Notaries in Bali Property Transactions

Two roles are involved and they are often held by the same person. A notaris is a public notary who draws up and authenticates deeds generally. A PPAT — Pejabat Pembuat Akta Tanah — is specifically licensed to execute land transfer deeds and register them. A land transfer must go through a PPAT with jurisdiction over the area where the land sits.

What they do

• Verify the certificate against the land office register, and confirm the seller is the registered holder.
• Check for encumbrances — mortgages, caveats, disputes, competing claims.
• Confirm the parties' legal capacity to transact, including spousal consent where marital property rules apply.
• Calculate and handle the transaction taxes.
• Draw and execute the deed, then register the change at the land office.

Why the choice matters

The quality of the diligence varies considerably. A thorough notary will physically check the certificate at the land office, question boundary discrepancies and tell you when something does not add up. A less thorough one will process the paperwork you put in front of them. You only discover which kind you hired when there is a problem.

If the seller or the agent insists on a particular notary and is reluctant for you to appoint your own, treat that as information.

What to ask before you appoint one

• Are you a PPAT licensed for this district?
• Will you physically verify the certificate at the land office, and may I see the result?
• What is your full fee, and what does it exclude?
• What have you found on the zoning for this specific plot?
• Who else in your office will handle this, and can we communicate in a language I read fluently?

On costs

Notary and PPAT fees are commonly quoted as a percentage of the transaction value, typically around one percent, though it varies with value and complexity. Get the fee in writing up front, and get it itemised — 'notary fees' as a single line tends to grow.

One rule

Do not release funds outside the notarial process on the strength of a private agreement, however well drafted. The deed and the registration are what create your rights.