General information, not legal advice. This guide sets out the general rules as I understand them. It has not yet been reviewed by an Indonesian notary, and the rules change. Before you sign or pay anything, confirm every point with your own independent notary (PPAT) or lawyer.
Why buy off-plan
Most new villas in South Lombok are sold before or during construction. Developers use buyers' stage payments to fund the build, and in return buyers get an earlier price, a choice of plot and layout, and sometimes input on finishes.
The risk is delay or, at worst, a project that stalls. Good structure and good checks reduce that risk a great deal.
How payments should work
A sound off-plan plan ties each payment to a construction stage you can verify, not to calendar dates. A typical structure looks like this:
| Stage | Share |
|---|---|
| Reservation | 5% |
| Notary signing | 40% |
| Foundation | 15% |
| Structure | 20% |
| Finishing | 15% |
| Handover | 5% |
This is the schedule used at Tampah Sky. The large payment at notary signing usually covers the land lease; ask what it pays for and what you hold once it's paid.
The due-diligence checklist
The land
- A copy of the land certificate (usually SHM) and the landowner's ID
- The certificate checked by your notary at the land office (BPN)
- No mortgage, dispute or family claim on the land
- Zoning that allows tourism villas
- Legal road access, not just a track over a neighbour's land
- Water, electricity and internet supply confirmed
The developer
- Company name, registration and who signs for it
- Completed projects you can visit, with owners you can call
- Payments go to a company bank account, never a personal one
The build
- Building permit (PBG) issued, or a clear date for it
- Final drawings, specifications and furniture list attached to the contract
- A construction timeline with a handover date
- Penalties or refunds if handover is late
- A defects period after handover
The paperwork
- An independent notary, chosen or checked by you
- A bilingual contract, English and Indonesian
- Lease terms confirmed in writing (see the leasehold guide)
- A rental licence and management agreement, if you plan to rent
- Receipts for every payment
Questions to ask the developer
- How many villas are sold, and how many are left?
- Which project did this team finish last, and was it on time?
- When does construction start, and what has to happen first?
- What happens to my money if the project stalls?
- How will I see progress: photos, video, site visits?
Red flags
Walk away or get legal advice if: you're asked to pay into a personal account; the land certificate isn't available to your notary; "freehold" is offered to a foreigner; there's pressure to pay a large sum before you've seen documents; or the developer can't show completed work.
Want this as a printable checklist? It's on page 6 of the free buyer's guide.
This guide is general information, not legal advice.