Real Estate Due Diligence In Indonesia

Buyers normally engage local legal counsel to conduct real estate due diligence. The legal counsel will coordinate directly with the seller and, when necessary, the seller's Land Deed Official (Pejabat Pembuat Akta Tanah, or PPAT) to obtain the documents to be reviewed and collect the necessary information on the land and the seller. The due diligence would normally include the following.

Land ownership and land search – to make sure the seller is the legal owner and has the legal right to transfer the land title. The documents that need to be reviewed in this case depend on whether the land is certificated. A land search is conducted to check the legal owner of the land and whether there is any security right or claim over the land.